Offer of redress help please!

[pepper1986]

We have had a successful complaint upheld by the FOS on a loan with Ocean Finance.

The PPI was front ended and is live with the loan.

A offer of redress was received yesterday and it seems 4.5k of the redress is needed to restructure the loan. With £5600 being paid back to us.

Ocean assured me that this is good practice in line with FOS guildlines.

I called the FOS yesterday and they said that only applies if we were in arrears with the loan which we are not.

Does seem correct

[Tools]

Re: Offer of redress help please!

How much was the original loan for and how much was the PPI?

The repayment should put you back to the original position you would have been in had you not taken out PPI on the loan.

Have you informed the FOS that this is what Ocean Finance are proposing and explained that no arrears were in place.

[pepper1986]

Re: Offer of redress help please!

Hi

Yes I have called the FOS yesterday and I have since emailed the letter for them to comment.

We were told the PPI was front ended with interest 12.5 k but it only covered us for 5 years of the 15 year policy and we are still paying it over the term.

The loan was for £32000

[Tools]

Re: Offer of redress help please!

As there are no arrears outstanding the choice of using part of your redress to repay some of the loan is entirely your choice, had there been arrears they would have been entitled to use part of the redress to clear any outstanding arrears.

Look at their proposal carefully and see if by using the 4.5k you would be in a better position over the term of the loan (i.e paid off sooner and less overall interest). Unless of course you need the full amount to pay off other outstanding credit. If you are able to just treat the redress as a windfall and could live without the 4.5k, it may be more beneficial to you to use it against the loan.

[loulouxx]

Re: Offer of redress help please!

Hi I had a look at the FOS website Here's what I can find on how Redress is paid based on a live loan with no arrears. Just take out the FOS figures. I have also uploaded a spreadsheet that will calculate the redress for a single premium policy based on what PPI you paid per month hopefully this will help

"where the loan and policy are still in placewhat we know

• you took out a loan for £10,000 over 15 years;
• we added the cost of your PPI premium to your loan. That was £2,500, so your total loan was for £12,500; and
• you are 3½ years into your loan.

what we have calculated

• if you wanted to repay your loan today, you would need to pay £10,700 (after deducting the rebate for cancelling your PPI policy early);
• if you had instead taken out your loan without the PPI policy, the outstanding balance today would be £8,700; and
• your loan payments have been £125 per month – without the PPI policy they would have been £100 per month (a difference of £25 per month).

what we will do

• We will cancel the policy for you and will restructure your loan so that only £8,700 is outstanding – to put you in the position you would have been in had you never had the PPI policy.
• In addition to reducing the balance of your loan, we will refund you the extra monthly costs you paid as a result of having PPI added to your loan, which is £25 per month. We will also add interest at 8% per year simple on each overpayment from the date it was paid until today. In total, that means we will pay you £1,050, plus interest of £120.

[pepper1986]

Re: Offer of redress help please!

The letter states its to restructure the loan with Ocean (Broker) saying they will send a cheque to Paragon (Lender).

I agree it may be best to let it ride but it seems odd. It seems like we are being forced to

[Tools]

Re: Offer of redress help please!

Wait to see what the FOS come back with and any further comments from members here who may be able to advise you better than myself.

[pepper1986]

Re: Offer of redress help please!

Thanks for your advice

I will post the FOS outcome

[loulouxx]

Re: Offer of redress help please!

I would speak to the FOS. I didn't realise that it was 2 separate broker/Lender companies sorry. I would definitely ask the FOS because from what I understand if a third party is involved it changes things but I only know what the guildlines are if the debt has been sold to a debt. In your situation it wouldn't hurt to ask the FOS to see if they can help you. But the spreadsheet attached will help you calculate they payments already made.

[pepper1986]

Re: Offer of redress help please!

There's no debt involved Ocean are the Broker and Paragon are the company with have the loan with

[pepper1986]

Re: Offer of redress help please!

Just an update.
The early indications from the FOS is what Ocean Finance did was incorrect.

FOS rang me on Friday saying I should a letter from them this week with their comments on the offer.
I will update as soon as I know more

[pepper1986]

Re: Offer of redress help please!

Just an update.
The early indications from the FOS is what Ocean Finance did was incorrect.

FOS rang me on Friday saying I should a letter from them this week with their comments on the offer.
I will update as soon as I know more

[di30]

Re: Offer of redress help please!

Just an update.
The early indications from the FOS is what Ocean Finance did was incorrect.

FOS rang me on Friday saying I should a letter from them this week with their comments on the offer.
I will update as soon as I know more

Glad this was noticed and will be corrected. I can remember my very first big reclaim (Nemo finance) it ended up with the FOS, it was upheld by the FOS and although a nice lump refund, the fos noticed it was about £2Kgrand down, so that was put right!

Well done on your success!

[pepper1986]

Re: Offer of redress help please!

Update

FOS adjudicator has ruled in my favour but Ocean have asked for it to go to the ombudsman for final decision.

[di30]

Re: Offer of redress help please!

Hi

Going by checking on the FOS website, when they post up decisions made by the Ombudsman, 99% of them going to the Ombudsman stick to the same decision as the Adjudicator, check this out here........

http://www.ombudsman-decisions.org.uk/Default.aspx

Are you under the criteria to request for fast track? (meanings getting it to the Ombudsman a little quicker), for example, a health matter, or serious financial hardship under respossession etc?

I'm sure all will be fine, and from what I am aware of, further redress maybe compensated to you, for basically having your case upheld by the Adjudicator if the same decision made by the Ombudsman to uphold, where it could have avoided going all the way to the ombudsman if the bank agreed at first instance with the adjudicators decision.