PPI Offer in Full & Final Settlement

[Ernest Able]

Please advise. Following claims I made for PPI compensation over two years ago, I recently received an offer in writing, "In "Full & Final Settlement" of my claims. This included an ex gracia payment for the delay in dealing with my PPI claims. I wrote to the company immediately accepting the offer made, which was to be paid into my bank account within 28 days. The company then paid a lesser amount into my account (almost half) and now claim that they made a mistake in their calculations. I have written to them to claiming the outstanding balance but they have failed to respond to my letter or to pay any further money into my account. If they have made a mistake in their calculations, can you confirm whether they are still liable to pay me the amount that they originally offered to pay to me in full and final settlement bearing in mind I have no way of checking their calculations and their is no indication of how much they intended to pay as an ex gracia payment. I would be grateful for your advice.

Yours sincerely

Ernest Able

[labman]

Re: PPI Offer in Full & Final Settlement

No full and final settlement is ever 100% watertight, so sadly they may well be able to find a way out of it. Every F&F settlement is judged on its own merits were you to take this further, and is governed under Common Law.

For the contract to be solid there has to be three elements:

1. Offer - you have this in the form of a letter

2. Acceptance - I assume you have a copy of your letter of acceptance

3. Consideration - this is the value (in this case money) given for the services offered. It is arguable that due consideration has not taken place here, as the offer has been changed in consideration. It will be interesting to hear other opinions, but I would think it may be worth your while paying a solicitor to send a Letter Before Action to see if this will make them move. Perhaps prior to that, it would be worth having a free consultation with a solicitor to see what they think.