Hi Battleaxe thanks for response - I have posted below Lloyds letter to me and my response sent today -your /anyones comments greatly received.
Dear Mug (my comments in blue)
I am now of the understanding that the issues you raised regarding the sale of your Business Loan Repayment Insurance have been investigated and that a final response letter has been sent to you on the 1st March.
In light of this I am writing to request your repayment proposals as a matter of urgency (must be running out of money I think not) As you are aware your accounts xxx & xxx have been amalgamated and the balance outstanding is £18,565.46 however my previous offer of £13,000 will remain open for a further 7 days.
Please contact me with your repayment proposals within 7 days. The bank is preferably seeking a lump sum payment or alternatively we will explore establishing a monthly repayment plan. As an example at an interest rate of base +5% the bank will require payments of £217.49 to enable you to repay the balance over a 7 year period (this equals £18,269.16 almost got all their generous good will gesture back –good job if you can get one)
If I fail to receive to receive suitable proposals from you within the time period I will be left with no further option other than to transfer your case to the Banks external collection agents (Grabbit & Co) Without further reference to yourself.
I look forward to hearing from you within the timescale detailed above.
Chief Mug catcher
And my response
I am in receipt of your letter dated 19th March which I received today the 21st March, I note its contents. I must say Dale the tone of your letter does not impress me.
You are correct I have received a letter of final response from Gail Owen regarding my miss sold PPI policies. I will state though that Ms Owen has not answered my questions which will enable me to ascertain the amounts for the miss sold policies. Consequently I have written back to her and informed her that I do not accept her final response, and that I require copies of statements from my previous bank managers under my SAR request.
I am considering filing a County court action under the Data Protection Act for non compliance / obstruction from her. As you will know this can lead to an order of imprisonment should a District Judge find that there has been deliberate concealment and / or obstruction. I will await her response to my letter, and then decide if a court application by me is to follow.
Consequently you will derive from this that the account is still in dispute. Further more I will not tolerate interference from “external debt collectors” I need not remind you that it is contrary to the banking code section 13.6 for you to pass this on to a third party until the dispute is resolved. Any attempt by you to carry out your threat will lead to an immediate complaint to the FSO.
I accept your figure of £13,000 as a GOGW and as a part settlement and wish to proceed to repay this amount on the following terms:
1) The amount will be subject to an interest rate of 3% above base.
2) The monthly payments will be made by me into my bank account. I will not be subjected to stuffing cash into envelopes and sending them to you akin to a naughty school boy, I have done nothing wrong.
You will be aware that the OFT has recently fined a bank for retaliatory action after the A&L closed an account following the customers justifiable complaint. I have not yet decided if I am to follow the many hundreds and report Lloyds for this to the OFT. I will await the outcome of our deliberations before reaching a decision.
I am well aware that relations between myself and my manager have irretrievably broken down on a trust basis, therefore I will accept you opening an account for me to use in my local branch
It is my opinion that once:-
The unlawful bank charges,
The miss sold PPI’s,
The managed loans,
The interest charged by you on unlawful charges,
The interest and ability by me to invest these amounts in my business
-has been fully calculated and deducted from the outstanding balance then a figure of around £5,000 will be left, I welcome your continued help to accurately calculate this amount.
Alternatively I will accept £8,000 as a full & final figure and commence repayment immediately over 5 years and also cease forthwith all claims and actions and confirm in writing that the account is out of dispute.
Of course you could short circuit all this letter writing by both parties and issue a writ in the County Court for the repayment of the outstanding £13,000.
My immediate response would be to insist the District Judge orders the bank to standard disclosure of its costs, (see whistleblower BBC1 21st March 2007 calculated @ £1.50 per item) to enable me to work out the actual figure I owe you.
This will (I am sure you know) result in a figure of about £1.50 to £2 being adopted as the normal amount that Lloyds (and the other banks) will be allowed to charge for returning D/D’s etc instead of the present charge of £35.
For clarification purposes I am sure you are aware that common law states that either party to an agreement cannot profit from a breach in the agreement, but may charge actual costs in order to restore the agreement to a position that existed before the breach.
A loss of about £1.5bn per year in net profits to Lloyds alone would be the result of these cost’s being made a ruling in a Court of law.
I trust a more constructive reply will now be forthcoming.
I hope this is to your satisfaction and therefore remain