Fast Turnaround Response For PPI Claim...Something Is Not Right!

[Helpseeker]

Hello,

After contacting KF Ins. Services about being possibly mis-sold PPI on my old car insurance, today I received a cheque for just under £130 which includes 8% interest = £9.63 . On the surface this is good news, however I don't think that I have been given the correct amount.

The speed of which my complaint was handled was quite fast (I'm not complaining about that), although I got the impression that the Customer Services person just wanted to get rid of me a.s.a.p.

I enquired on 11th July 2013 and by 7th August 2013, I received a notification email. I did respond to say that I was getting advice about their reply, but by then they had given authority to raise the cheque which is dated 9th August.

I was not involved in the process/financial's. There was no negotiation about the settlement amount before it was finally agreed (by them only), and I don't believe I have received a full breakdown of the figures. There is just a cover letter and the cheque itself.

Can you advise me on how I can double check their figures?

My car ins. cover ranged from Nov 1998 - Nov 2002. The ppi was not shown as a seperate figure(s) but was included in the monthly premium payments. I paid just over £3,800 in premiums in a 4 year period, and think that I have been underpaid.


Regards,
HS.

[di30]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hi there
I would write to them and ask them for a more detailed breakdown of how they came to the figure of the refund, as a detailed breakdown should enclose details of how much PPI you paid plus interest.

Do you still hold any paperwork of the account?

[Helpseeker]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hello Dizzy,

Thank you.
Yes, I have all of the paperwork, although one year's papers seem to be missing (for now).

Regarding the cheque, should I hold onto it for now?

Regards.

[di30]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hi there
Your welcome

I think there is a time limit of cashing in cheque's, can't remember what that is though.

[di30]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

LOL sorry just edited on some of the above info, as originally put in incorrect response that was meant for another post lol.

Does the business have an email address for a quicker method of contacting them?

[Helpseeker]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Yes. I have direct email contact with the customer services person.

For clarification, I just want to include below some information that was sent to me by them:

"On your policy from 6 November 1998 your paperwork shows that this cover was included in your monthly direct debit payments. Your renewal notice from 6 November 1999 confirms that the payments quoted included the payment protection policy. When this policy was renewed, there is no confirmation on the paperwork that you have sent to me that this cover continued until your policy was due to be renewed again in November 2000. I regret that there is no documentation showing that there was a motor insurance policy in force with us from November 2000 to 2001 or stating that payment protection was included. We have received an instalments confirmation letter and certificate of motor insurance showing that a policy was arranged from 8 November 2001 until 2002. However, there is no proof that the payment protection policy was arranged for this policy.

As confirmed in my email dated 5 August 2013, I regret that we no longer have access to your files from 1998 to 2002. However, as you have provided some documentation from these years, I have been able to make a decision in relation to your payment protection claim.

Following my investigation, I can only assume that the payment protection policy was in force for your four policies from November 1998 until November 2002. I am unable to listen to the call recording from when the payment protection policy was added to your monthly payments and cannot confirm that this policy was mis-sold. However, our renewal notice dated 19 October 1999 confirmed that your renewal payments included the payment protection plan and we asked you to contact us before your policy was due for renewal if you did not want this cover to continue.

When the payment protection policy was sold originally the premium was £19.99 for a years policy and increased to £32.89 in 2005. We have calculated the cost of the payment protection policy from 1998 to 2002 at £29.99. Due to this you are due a refund of £119.96 plus the additional 8% interest increases this amount to £129.59. I will arrange for your cheque to be sent to you. Please allow ten working days for your cheque to arrive.

I hope I have answered all your concerns and I that my explanation has been helpful to you. However, if you remain unhappy with my response you can contact the Financial Ombudsman Service within six months. Details can be found by clicking on the link below www.financial-ombudsman.org.uk/publications/consumer-leaflet.htm "

[FlamingParrot]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hi there
Your welcome

I think there is a time limit of cashing in cheque's, can't remember what that is though.

If memory serves me, it was 6 months (or 180 days).

[Helpseeker]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

I believe that it's 6 months to cash a cheque :tinysmile_grin_t:

Hi there
Your welcome

I think there is a time limit of cashing in cheque's, can't remember what that is though.

[di30]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Yes. I have direct email contact with the customer services person.

For clarification, I just want to include below some information that was sent to me by them:

"On your policy from 6 November 1998 your paperwork shows that this cover was included in your monthly direct debit payments. Your renewal notice from 6 November 1999 confirms that the payments quoted included the payment protection policy. When this policy was renewed, there is no confirmation on the paperwork that you have sent to me that this cover continued until your policy was due to be renewed again in November 2000. I regret that there is no documentation showing that there was a motor insurance policy in force with us from November 2000 to 2001 or stating that payment protection was included. We have received an instalments confirmation letter and certificate of motor insurance showing that a policy was arranged from 8 November 2001 until 2002. However, there is no proof that the payment protection policy was arranged for this policy.

As confirmed in my email dated 5 August 2013, I regret that we no longer have access to your files from 1998 to 2002. However, as you have provided some documentation from these years, I have been able to make a decision in relation to your payment protection claim.

Following my investigation, I can only assume that the payment protection policy was in force for your four policies from November 1998 until November 2002. I am unable to listen to the call recording from when the payment protection policy was added to your monthly payments and cannot confirm that this policy was mis-sold. However, our renewal notice dated 19 October 1999 confirmed that your renewal payments included the payment protection plan and we asked you to contact us before your policy was due for renewal if you did not want this cover to continue.

When the payment protection policy was sold originally the premium was £19.99 for a years policy and increased to £32.89 in 2005. We have calculated the cost of the payment protection policy from 1998 to 2002 at £29.99. Due to this you are due a refund of £119.96 plus the additional 8% interest increases this amount to £129.59. I will arrange for your cheque to be sent to you. Please allow ten working days for your cheque to arrive.

I hope I have answered all your concerns and I that my explanation has been helpful to you. However, if you remain unhappy with my response you can contact the Financial Ombudsman Service within six months. Details can be found by clicking on the link below www.financial-ombudsman.org.uk/publications/consumer-leaflet.htm "

Thank you for posting this up.
So it looks like they are refunding you on the information they do hold then?

When they said they cannot locate any info 1998-2002, did you actually try requesting for a Subject Access Request (SAR) from their data dept. This is the dept that will keep all your account(s) details. Where the complaints section said they not able to find the files, they are often kept in the data dept, and the complaints section do not usually go that far to check way into the systems.

If you've not requested for any paperwork by SAR (which may enclose further details of your account) this will cost the one off £10 cheque or postal order and they have up to 40 calendar days to comply by data protection act (DPA), if the data dept are not able to locate any of the details, they therefore return your payment with a letter to explain the reasons.

Some companies will hold data for longer than 6 years, where others may not.

If you want to send a SAR (If you've not done so yet) it's up to you of course if you want to do this, but let us know and one of us will be happy to forward the SAR template letter for you.

[Helpseeker]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hi Dizzy,

What they are referring to is information/paperwork that I emailed them, that was originally in my possession.
The part about the ppi was something that I could not see clearly on my papers, even when it said that ppi is included.

So yes, they must have got those specific ppi figures from somewhere.
I see now why you have said what you said about their holding information, otherwise how would they know the ppi amounts from 11-15 years ago? :nod:

Apart from my initial contacts by phone call and email, I have not sent a SAR. I think this may be good option to go down.
I welcome receiving your help with this, especially in composing a response.

Regards,
HS.

Thank you for posting this up.
So it looks like they are refunding you on the information they do hold then?

When they said they cannot locate any info 1998-2002, did you actually try requesting for a Subject Access Request (SAR) from their data dept. This is the dept that will keep all your account(s) details. Where the complaints section said they not able to find the files, they are often kept in the data dept, and the complaints section do not usually go that far to check way into the systems.

If you've not requested for any paperwork by SAR (which may enclose further details of your account) this will cost the one off £10 cheque or postal order and they have up to 40 calendar days to comply by data protection act (DPA), if the data dept are not able to locate any of the details, they therefore return your payment with a letter to explain the reasons.

Some companies will hold data for longer than 6 years, where others may not.

If you want to send a SAR (If you've not done so yet) it's up to you of course if you want to do this, but let us know and one of us will be happy to forward the SAR template letter for you.

[di30]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hiya and its my pleasure.

Like helping all i am able to.

I Do have a template SAR letter, but think Billk has an updated one, I shall message Bilk and he should be along with the template soon

However, there is no harm in just writing to ask the complaints dept of where they got the figures from, as you require these in more detail.

I shall message our Bilk now for you.

[Helpseeker]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Thank you.
I will send the email to them requesting further breakdown.

Regards.

[Bill-K]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hi Helpseeker - and sorry for the delay.

In your post #6, I see that they have said "I can only assume that the payment protection policy was in force for your four policies from November 1998 until November 2002." To me, this means that they are refunding the PPI which they estimate you would have paid for that period. They then go on to show how this would have been charged - presumably from the general record that they have - as opposed to any specific records for your account. Just roughly - I calculate that there were 4 annual premiums paid of £19.99, which comes to £79.96. Adding 8% p.a. interest to each premium comes to £84.76, so the total is £164.72. The 8% interest is taxable, and they may have deducted 20 % income tax from this, which would reduce the total to £147.25 - but they should tell you if they have done this.

Here is the DSAR that I currently use & recommend. It is actually a combination of several DSAR's that have been published over recent years - so I take no credit for it personally. This is the version for a single person, but you can adapt it for a joint DSAR if required:-

[ Your Name & Address ]

The Data Controller
[ address ] Date:









Dear Sir/Madam,
Data Subject Access Request - Pursuant to the Data Protection Act 1998
Data Subject: [ xxx, address as above, and formerly of: ]
Please supply all data that your company holds relating to my entire account history. Whilst not exhaustive, for the avoidance of doubt I list below what I require:
o Full and legible copies of all contracts and agreements that have existed between myself and your organisation, including copies of any documents you hold in support of same. This is to include account no. [XXXX]
o Full and legible copies of all statements relating to the above accounts. This is to include all credits, debits, charges & interest applied to my account(s) including details of any instances that required manual intervention. It is also to include monthly account balances.
o Full and legible copies of all correspondence, including all letters, faxes, emails and memos sent and received between ourselves, and any other third party in relation to any of the above accounts.
o Full unedited copies of any telephone recordings and/or transcripts of these recordings as well as any logs or journals that relate to them.
o Full and legible copies of all documents which include any of my personal information including copies of any contracts or invoices, emails or computer records containing my personal information, or any records which pertain to this information.
o Full details and legible copies of any documents upon which you relied when you have provided my personal or financial information to any individual, organisation or third party.
o Full and legible copies or transcripts of any computer logs or database records kept in relation to myself or in relation to my financial or personal information.
o Details of all systems you currently have in place to ensure my personal or financial information is kept securely, including details of those officers who currently have control of the same, and at the time it was held or provided to a third party.
o If any data has been deleted or disposed of, the methods used to do so, including dates, reason for deletion, certificates or documents confirming details of destruction. If you are unable to provide such certificates, then I require a declaration, signed by an authorised officer of your company, confirming the dates and methods of destruction of this data.
Please be aware that the Data Protection Act 1998 clearly states that all information held must be disclosed and there is no correlation to the Limitation Act 1980 whatsoever. This request therefore lawfully includes any and all data which is older than six years. If you do not hold any data older than 6 years, then I require a signed declaration from your data controller confirming this, and a copy of all documents pertaining to its proper disposal.
All data - including data held on a microfiche or similar systems - must be provided within 40 days, and if you require a fee for this, then I enclose the maximum statutory fee of £10.00 – which must not be used for any other purpose. If you choose to waive all or part of the fee, then please be aware that you will still have a legal obligation to comply with this request. I thank you in anticipation of a prompt and full response and compliance.

Yours faithfully,

[ Sign ]



[ Print your name ]

Encl: £10.00 fee.

[Helpseeker]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

Hi Bill-K,

That's ok. No need to apologise :tinysmile_grin_t:

On Thursday I sent an email to the contact asking for more detailed information. She will see it when she returns to her office on Monday (I received an out-of-office reply), then I will note her response.

Thanks for your help and information. I think I will wait to see what is included in her response before sending the SAR letter.

Also, I was just looking further at your figures. The calculations is where I fall down a little.

From Kwik Fit's email, I know that the refund was calculated from their ppi amount that they said was £29.99 per year, as the base figure.
Times that by the four years cover equals £119.96, although you calculated £79.96 (which is at £19.99 p.a).

Also, as part of the calculation, shouldn't they have based it on the % rate that was used at the time of my payments? I know that it was a running account credit facility. On their renewal paperwork, that was stated as 35.4% p.a in 1999.

Am I also applicable for additional compound interest?

From what I gather, that would be 8% per year simple interest on each premium from the date it was paid, until the date compensation is paid, as stated by the FOS. The ppi re-payment or received cheque date is 9 August 2013.

So from that info above, and from my last payment made on 8 Nov 2002, then the comp should start from 9 Nov 2002 to 9 August 2013 (cheque date).

Is that right?
I'm not exactly sure how to calculate the rest of the interest or the total from my figures?


Regards,
HS.

[Bill-K]

Re: Fast Turnaround Response For PPI Claim...Something Is Not Right!

I agree, HS - wait until you get a response before sending the DSAR.

I was going by the paragraph in blue in your post #6, where they state that the premium was £19.99 pa. until 2005. I'm afraid I missed the next sentence where they say they have calculated it at £29.99 pa - so you are correct - this totals £119.96. I apologise for missing this whilst attempting to 'speed-read.'

As this car insurance was paid monthly via a credit agreement, then it is likely that the PPI premium attracted interest in the same way that the car insurance premium did. If this is the case, then I agree that a portion of the interest was attributable to the PPI component in each monthly payment, and should also be refunded.

If this was a 'revolving credit' facility, then I doubt if very much - or any - 8% compensatory interest (simple - not compound) would have been payable. But I'm not so sure that is the case. Surely, the credit agreement is renewed each year, and runs for a fixed term of 10 - 12 months ? In that case, it would be a fixed-amount loan, and 8% interest would then be due on each of the PPI repayments (plus apportioned account interest). And, as you say, this is calculated from the date of each repayment to the date of claim settlement.

To calculate this, we would need to know the actual car insurance premium, the PPI premium, and the number and amount of monthly repayments each year. If you can supply these details, I should be able to calculate a more accurate figure for you.