PPI Barclays CC

[SahinA]

Hi

I wonder if anyone could advise me. I found out I had PPI on my credit card quite by chance. Asked for a refund as I was working abroad during the 5 years PPI was added to my card. Barclays reviewed by case and did not uphold my complaint. Then I found your brilliant site. I then asked them to investigate my case again as I had an expired passport as evidence I was out of the countruy again investigation was not upheld. I submitted a SAR, I recieved a single sheet, I sent a complaint re Barclays in breach of Data Protection Act to the Chairman. Got my case opened again, Finally got the SAR but my statements from 1995 - 2000 were all missing and the applciation had been forged, as the handwriting style used to pick the PPI was so different to my ticks. Another long delay, then I wrote to my MP and cc them in, got a result back in less an hour that they had upheld my compalint. Spent 2 weeks waiting for the money. Today been offered £1,072.00 which seems very low PPI on a credit card for a five year period dating back to 1995. Any advice would be extremly welcomed

Many thanks for taking the time to read this post.

Sahin

[di30]

Re: PPI Barclays CC

Hi Sahin
And welcome

Wow your a fighter, good for you!! That's what we like to hear!

I take it they not provided you with a full detailed breakdown of the refund then?

Write to them, or even get your MP to contact them, meanings this did help to push your case, just say to your MP that they failed to provide you with a detailed breakdown and before you accept it, you would be happy if its possible for them to contact the bank on your behalf to provide these details to you for as soon as possible.

Basically though you get back each monthly PPI payment you paid to settlement of the card, plus relevant interest, it does work out a little different to loan PPI. Maybe one of the guys will be along shortly to clarify on this for you x

[SahinA]

Re: PPI Barclays CC

Hi many thanks for your response, your site is great and the sole reason I was able to get my PPI complaint upheld but it took alot of emails which I am more than happy to downloaad remving personal details etc and staff who deal with PPI's make stupid mistakes that enables you keep a complaint open.
I have the full breakdown - they state - we are unable to procure any records of the premium yu may have paid, we have based the refund due on the redress that would be payalb eon a coparable policy sold at and held for a similar period

a) redund of payment made by yu for PPI cover from 1990 -1995 this is the total of the PPI payments made to 02 february 2000 - five hundred and eighty nine pounds and ninty three pence
b) refund of interest charged in PPI premimums - three hundred and two pounds and fourteen pence
c) eight percent interrest per annum - one hundred and eightly pounds
total one thouands and seventy two pounds and seven pence.
sorry my pound sign does not work.....

I thought that the interest on the PPI payment each month would have been higher, do you add the interest from 1995 to 2000 only and not up to 2013. Sorry getting very confused with this

Many thanks sahin

[di30]

Re: PPI Barclays CC

Hi and your welcome.
I'm sure the guys will be here at some point to check the calculations for you, but I understand the calculating of PPI interest differs from credit card to loan ppi, but below is some info on how the FOS would calculate and expect the business to calculate that way (not always including further redress for inconvenience etc, that only mainly happens if you end up complaining to the FOS).

Check this out here:

redress for mis-sold PPI on credit cards

Where a PPI policy is sold alongside a credit card, the premium is added to the credit card balance each month and interest is payable on it.
our approach

Where a consumer was mis-sold PPI alongside a credit card, and the policy remains in force, we will tell the business to cancel it. The approach we tell the business to take to compensate the consumer fairly will depend on the consumer’s circumstances and the current position of the credit card, but compensation will usually involve two steps:

• A hypothetical reconstruction of the credit card account to find out what the current balance of the credit card account would be if the consumer had paid the same monthly payments, but the PPI policy had not been added to it.
  
  This will involve the business removing the PPI premiums, any interest that was charged on the premiums and any charges (and interest on those charges) that would not have applied if the PPI had not been added to the account.
  
  The business should then pay the consumer the difference between the current balance and what the current balance would have been without PPI.

• The addition of interest (usually at our normal rate of 8% per year simple) on any credit balance for any periods when the reconstructed account would have been in credit.

In some cases we may decide to tell the business to pay compensation for any distress or inconvenience caused to the consumer.

From the FOS website here:
http://www.financial-ombudsman.org.u...s_for_mis-sold_

Hope this helps until the guys arrive.

Di
x

[Bill-K]

Re: PPI Barclays CC

Hi SahinA, and well done for getting them to admit PPI mis-selling. As Di says, PPI calculations are different for credit cards to those used for loans.

The PPI payments themselves are the monthly PPI 'premiums' charged to the account, of course.
The account interest is the portion of monthly account interest that is attributable to the accumulated total of PPI charged.
The 8% interest is only paid when the monthly account balance WOULD have been in credit, if the PPI had not been sold - and is only payable for those months. In some cases, no 8% interest is awarded at all.

It is difficult to gauge whether the offer made to you is fair or not without a lot more detail about the calculation of it, but if the £589.93 estimate seems reasonable, then the interest on this also seems roughly what I would expect.

[SahinA]

Re: PPI Barclays CC

Many thanks Bill I think I was getting confused with compact interest charges on the PPI, adding 20% interest to each of the premiums over an 18 year period which came out at a much highter amount. As neither I nor the bank have any statements for this period it is hard to prove anything. On the original form sent by the SAR team, they identified a second PPI payment but were not sure what is was for, which I think must have been a loan, this was 18 years ago when I was a young man and I really can not remember. Is it worth me persuing this? No paper work but clearly PPI payments made.

Many thanks

Sahin

[SahinA]

PPI Barclays CC compact interest

Hi Sorry just wondered if it made any difference that my barclays visa card was ways maxed out. I think the limit was £2,000 and I have always owed my credit cards £1,500 - £2000. So that's why I questioned the compact interest charges on the PPI premium. The bank can easily see that from 2001 - 2013 I have never managed to clear my card, its always maxed out.

thanks again Sahin

[Bill-K]

Re: PPI Barclays CC

It can be difficult to pursue PPI claims where you have little or no data yourself. The lenders will usually not provide any data further back than 6 years ago, and it can be a difficult task to get this from them, even if they actually do have it. Unless you have the statements yourself, the lender will usually say that they do not have the data, and this leaves you - the claimant - having to prove that you do have a claim.

As a general rule, it is accepted by the FCA that PPI is likely to have been charged at a rate of 0.69% of the monthly balance. VERY roughly - if your balance owing was £1,750.00, then this would have been around £12 per month, or £144 per year.

[SahinA]

Re: PPI Barclays CC

Many thanks for your help. I am chasing Barclays for the actual compact interest charges on the comparable account they used for their compensation offer. There was another product with PPI added, I guess it was a loan on my card but I have no paperwork as it dates back to 2000, however it was identified in the SAR. Is this a lost cause? Their response to my request for more details on the comparable account is below

My understanding of your complaint is that:

• You would like to know the amount of money owed to Barclaycard Visa Card on the comparable account we have used to calculate the compact interest
• You would like advise about the other product that PPI was added to which was identified in your SAR.

We can advise that we can not provide details of the amount owed because Barclays uses averaging figures in this situation. We have reviewed your complaint about the other product that PPI was added to and unfortunately, we are unable to locate this product.

We are sorry this is not the outcome you wanted. As explained in our Final Response letter dated 14 August 2013, you have the right to refer your complaint to the Financial Ombudsman Service. If you want to do this, you must refer your complaint within six months of 14 August 2013.

How can I get the bank to provide details of the comparable account they used as I guess looking at the compact interest the comparable account paid off their balance in full each month which I have never ever been able to do. Any advice is greatly appreciated.

Many thanks


Sahin

[dogtired]

Re: PPI Barclays CC

Keep at them, they seem reluctant to admit they are wrong dont they.
Just got my SDAR back from them and it is incomplete but they reckon they calculated PPI from 2001 but not statements to back this up.
Bill K and Di are stars good luck.x

[Bill-K]

Re: PPI Barclays CC

I believe we can 're-construct' your account and carry out our own estimate if you have account data/statements from 2001 to the present time - but it will entail some considerable effort, if you're up for it SahinA.

What I would need you to do is to put some of the data from all of your monthly statements into a spreadsheet. This will enable me to work out what your PPI refund should be for that period. I can then also use those figures to calculate an average (which is what Barclaycard say they have done) for the period from 1990.

Here is a very rough estimate I have made, based on the info that I have so far:-

Assuming that the monthly balance owing has been £1750 since mid 2001, then we can take that as the basis for estimating the average balance back to account inception in mid (I have assumed) 1990. This appears to be the method that Barclaycard has used.

The FCA accepts that a reasonable estimate for PPI can be based on 0.69% of the monthly balance owing, and this comes to £12.08 per month.

There are 278 months between 1/7/90 and 1/9/13, and 278 x £12.08 comes to £3358.24 - so that is the amount of PPI which I estimate to be due to be refunded.

The accumulated account interest attributable to the accrued PPI is more complex to calculate, but I estimate this to be approx. £6800.

The Statutory 8% compensatory interest is similarly complex, but I estimate this to be approx. £5700.

This brings the total estimated claim quantum to approx. £15,858 - considerably more than the £1072 they have offered !!! Please bear in mind that this is simply my own estimate, based on the info that I have - but this certainly seems to bear out your suspicion that their offer of redress is too low. If we are to pursue this further, then we will need as much irrefutable data as possible to support our estimate, so I will need you to fill in the attached spreadsheet with as much info as you can - and this must be info that you can back up with 'hard copy' evidence.

I will then endeavour to assemble an accurate estimate based on that, and we can then submit it to Barclaycard as a challenge to their offer. This should put them on the spot, because they will then need to clearly explain why their estimate is so much lower - or pay up.

[SahinA]

Re: PPI Barclays CC

Thank you Bill, I will give it a go, I paid PPI for five years and then the bank cancelled the policy. So I have only paid PPI from 1995 - 2000, I agree with the PPI refund of 580 pounds but was not sure if their compact interest was correct.
Kind regards
Sahin