Lloyds PPI Offer Urgent HELP required

[Gooders]

All,

Brief outline.

Took Loan out in Oct/Nov 2002
Never got option of PPI (box was already ticked)
CCA'd Lloyds & they have said

1) They apologise but cannot supply original agreement.
2) They are willing to refund the cost of PPI at £1939.12
3) They have adjusted their figures to include £388.71 interest.

MY QUESTION

Because LTSB cannot supply original agreement, there is no way of knowing what interest rate was applied. £388.71 is a compound rate in the region of 4.16%, I KNOW this will not have been the interest applied onto the loan!!!

So do I:

a) ask for stat 8%
b) claim unauthorised interest rate of 29.8%
c) Or another rate??????

They cannot supply the agreement so are admiting they are breaking the requirement of the CCA request....therefore the law! Surely this means that the unauthoorised rate is in effect???? Im NOT being greedy just astounded that they have admitted in writing that they cannot comply with the legislation....surely their must be some cost to that.

The lady has said she will ring me back detailing how the interest was calculated, so I need urgent help to work out wether to put in a counter offer or say no thankyou, I will go for court.

Gooders

[Keith22]

Hi,

The way LloydsTSB calculate refunds of interest is:

They run off a printout showing all the loan payments you have made including the PPI. They then reduce the original loan amount by the PPI premium and re-run the printout using the reduced payments that would have been necessary. The difference between the two printout outs is the amount of interest to be refunded at the correct rates that prevailed at the time.

I asked them to provide me with their method of calculating interest refunds and this is what they said. It is the method they used with me and they supplied copies of the printouts which to be honest were a bit complicated to understand. Eventually after laborious manual calculations I arrived at the same figure within a few pence. It worked out at more than 8%.

I don't know anybody who has succcessfully claimed compound interest refund on PPI but I'm sure somebody may pop up to help you.

Hope this helps

[hellhasnofury]

Originally Posted by Gooders

All,

Brief outline.

Took Loan out in Oct/Nov 2002
Never got option of PPI (box was already ticked)
CCA'd Lloyds & they have said

1) They apologise but cannot supply original agreement.
2) They are willing to refund the cost of PPI at £1939.12
3) They have adjusted their figures to include £388.71 interest.

MY QUESTION

Because LTSB cannot supply original agreement, there is no way of knowing what interest rate was applied. £388.71 is a compound rate in the region of 4.16%, I KNOW this will not have been the interest applied onto the loan!!!

So do I:

a) ask for stat 8%
b) claim unauthorised interest rate of 29.8%
c) Or another rate??????

They cannot supply the agreement so are admiting they are breaking the requirement of the CCA request....therefore the law! Surely this means that the unauthoorised rate is in effect???? Im NOT being greedy just astounded that they have admitted in writing that they cannot comply with the legislation....surely their must be some cost to that.

The lady has said she will ring me back detailing how the interest was calculated, so I need urgent help to work out wether to put in a counter offer or say no thankyou, I will go for court.

Gooders

Hello,

I am in the process of discussions regarding the refund of mis-sold ppi.
I have Asked them very nicely to give me the 8% interest of the amount from 2002, because that Is the amount I will get when I take them to court. And after all this is money that they have had for the last 5ys.

The interest you ask for is the interest they charged you for the credit


Be warned they may record the telephone conversations, think very carefully before you answer.

Ask them to clarify everything in writing to you before you can agree or disagree.

I would not say no to their offer. Tell them take you are prepared to accept this amount as part settlement, but will pursue the rest via the court if necessary.

I sound a bit paraniod and not very trusting, I am because that is the way they have made me

Good luck

[Gooders]

Thanks Guys,

Well looking at it and using Mindzai's spread sheet £388 interest on £1939 since Oct/Nov 2002 is 4.16%

At 8% interest this would be £463.61.

I also went on-line and got a quote for £1939 over 48 months, this they kindly offered me at 17.9% which would mean a massive £1288.78 in interest when appled to my loan!

I also calculated 29.8% but that scared me!!!!! (over 4 grand!!! £2500 in interest)

I am inclined to listen to how they came to the figure, and unless they offer to apply the loan rate I was on (not likely because they cannot find my agreement!!!) then I think there is an argument for applying their loan rate of 17.9% and even the un-authorised rate of 29.8%. I would of course be content with the 8% that I am entitled to but......they are bargining from a very doggy position ie they cannot comply with the CCA request and this surely shifts the power for bargining.

All I want is the PPI back at the loan rate I was charged for it. It is what I am entitled to, if not then I will fight for contractual interest (but be willing to accept statutory).

Are there any glaring errors in my reasoning???? Because unfortunately for obvious reasons the contractual rate is very appealling to me and I trying to be balanced.

Gooders

[dx100uk]

"then I think there is an argument for applying their loan rate of 17.9%. "
i totally agree
i've just had an arguement with monument whereby they said they only charged 7.18% int on the refunded ppi payments. but i said, 'thats my money!, you have prevented me from using it", if i had taken out a loan with you for that amount, you would of charged your standard rate, why can inot then charge you that now..you've borrowed MY money.!!

got the Credit card rate of 24.9% compounded as well

dx100uk

[Gooders]

DX100,

My point exactly! I think I should claim 17.9% at the loan rate but if they fight it I would accept a court offer of 8% if he deemed that was a fair conclusin, certainly a lot better than 4.16%!!!!

However, how could they fight this in court when they have broken CCA requirements and do not have my agreement???? They have accepted that due to their inability in not being able to find the agreement they will refund the money. Its in writing...

Gooders

[hellhasnofury]

Originally Posted by Gooders

DX100,

My point exactly! I think I should claim 17.9% at the loan rate but if they fight it I would accept a court offer of 8% if he deemed that was a fair conclusin, certainly a lot better than 4.16%!!!!

However, how could they fight this in court when they have broken CCA requirements and do not have my agreement???? They have accepted that due to their inability in not being able to find the agreement they will refund the money. Its in writing...

Gooders

Excellent, start of as you mean to go one. Request the 17.9% and let them argue the toss.

Good luck

[Gooders]

thanks hells,

ok, will let them argue but when the nice lady from ltsb rings, im going to initially claim 29.8% that way hoprfully they will cave at 17.9%!!! having said that, ...... no agreement I may take this all the way........

will post again when i find out more.

Gooders

[Gooders]

Yesterday I got a call from LTSB telling me that as the loan was for a graduate account the interest charged was 7.56%. So I have ahd a slight rethink as to what I am going to claim and have prepared the following letter.

Any comments greatfully received.

Gooders

30 March 2007

Customer Care
LLOYDS TSB Insurance
Tredegar Park
Newport
South Wales
NP10 8SB

Ref: XXXXXXX
ACCOUNT NO: XXXXX / SORT CODE: XXXXXX
Dear XXXXXX,

Firstly I would like to thank you for the manner in which you have dealt with my request for the refund of the miss-sold PPI in respect to the loan I took out on 5 November 2002. Your letter dated 23 March 2007 outlines that you are unable to comply with my request for a ‘true copy’ of the loan agreement as laid out in the Consumer Credit Act 1974 section 77 (1) & 78 (1). I must admit that I am disappointed that you have defaulted in this request but appreciate your agreement to pay £1939.12 with an insurance adjustment of £388.71 making a total of £2327.83. I am willing to accept this amount as part settlement in regards to this matter.

With this letter I am including a schedule of charges detailing the PPI amount that was charged and on which I was charged interest. In our recent conversation you reported that the interest charged to this loan was 7.56% APR. Whilst I appreciate this information, you will see that I have calculated a slightly different amount that I will accept as resolving my concerns satisfactorily. I have calculated that between 5 Nov 2002 and 4 Oct 2006 I was paying interest on the total PPI amount of £2025.82. As such I believe that should this matter go the route of Small Claims Court I would be entitled to request the statutory award of 8% interest plus costs. In the interest of resolving this matter amicably I now offer the following breakdown as the requirement for full settlement:

● £1939.12 in respect to the total amount I paid towards this insurance.
● £697.36 in interest calculated from 5/11/02 – 2/10/06 at a rate of 8% compound interest.
● £13.52 in personal costs to bring this matter to your attention.

The total I therefore require to be paid to resolve this issue is £2650.

As I intimated previously I am prepared to accept your offer of £2327.38 as part payment in respect to this matter. However, I will proceed with my claim for the remainder of the funds.

I hope that we can amicably come to an agreement on this matter but due to your default of the request made in respect to The Consumer Credit Act 1974, I will rigorously argue against any defence you may bring if this matter proceeds further.

I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive payment.

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that these targets are more than sufficient for a large company such as yours with dedicated staff and departments.


After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.


Yours faithfully

Gooders

Let me know what you think as letter going off on Monday.

[hellhasnofury]

Well done Gooders, what a lovely polite letter. Being polite but firm

Can the not find the original credit agreement MMMmmmhh

[Gooders]

Well just got off the phone with a lady at lloyds, 1800 and still in work my we are busy people aren't we????

Long story short, they cannot confirm original interest rate in writin because they cannot find the credit agreement, so "as a gesture of goodwill" they will accept my figures and pay me the money within 10 days of my acceptance form getting to them!!!

So thats a win with everything I was asking for........

Insurance amount + 8% compound interest and costs (laid out in the letter)

Mods please change this thread to *WON* and add the sum to the running totals. Thankyou all for your help it gives you strength to know that support is only a few clicks away!!

Gooders

[dx100uk]

well done

good work

dx100uk

[hellhasnofury]

Originally Posted by Gooders

Well just got off the phone with a lady at lloyds, 1800 and still in work my we are busy people aren't we????

Long story short, they cannot confirm original interest rate in writin because they cannot find the credit agreement, so "as a gesture of goodwill" they will accept my figures and pay me the money within 10 days of my acceptance form getting to them!!!

So thats a win with everything I was asking for........

Insurance amount + 8% compound interest and costs (laid out in the letter)

Mods please change this thread to *WON* and add the sum to the running totals. Thankyou all for your help it gives you strength to know that support is only a few clicks away!!

Gooders

Hello Gooders,

So glad to hear of your good news.

Well done