Confusing Halifax CC PPI offer

[SaulB23]

Hi all.
apologies if my first post on here comes across a little confusing but im a litttle confused myself but will try to make it as clear as i can!

I recieved a letter from the Halifax bank on the 17th of july this year to say that they were changing my PPI provider on my credit card to another company,it came as a bit of a surprise as i was completely unaware i had the cover so proceeded to ring them to see what was going on. They let me cancel the policy and lodge a complaint saying they would need 8 weeks to investigate.

Yesterday i received a letter saying they accepted my claim and were offering me compensatuion as follows-

Refund of premiums =£643.73
Refund of interest applied to the account because of the PPI =£0
Interest at 8% calculated up until 1st Sept 2012 = £88.84
Total = £732.57

The bit i dont really understand is the refund of the interest applied to the account =£0? Does this sound right?

I have done a bit of digging on the internet and it seems that the interest on the PPI on personal loans is quite simple to work out as its a set fee but in the case of a credit card it varies as the amount of money owed is different each month. So will the bank work this figure out and deduct it from the balance still owing on the credit card? (£1450) as the letter does say they will have to restructure my statements from previous years to what the balance would be without the PPI added on to it.

Also they say i do not need to contact them unless i am unhappy with the offer and they will send a cheque for the £732.57 within 28 days.

Any help would be greatly appreciated as i feel they are'nt giving me the full amount but dont want to have to go to a claims company to sort this out.

Thanks,Saul.

[Bill-K]

Re: Confusing Halifax CC PPI offer

Hi Saul, and welcome to you. Yes, your research seems to have been fruitful. Yes, indeedy, with credit cards, they need to work out what portion of the monthly account interest is attributable to the accumulated PPI. This is not always done correctly, but is not easy to check.

The 8% interest is normally only applied in any month where the account balance WOULD have been in credit if the PPI had not been purchased. This is very often zero, and it is possible that the £88.84 is actually the apportioned debited account interest.

We have a spreadsheet/calculator program which calculates all of this, but you will need to enter a lot of data, and we cannot do this for you. If you have the dates and figures, then you can check their offer, using this. It's tedious entering the data, but the program does all the calculations. I can post a copy of it here if you're up for it !!!