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m-hawk

Lloyds PPI mis-selling claim - help please

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Hi all - this is a fantastic site, thanks to everyone involved in running it. I was about to sign up to Brunel Franklin but after reading this site I think I can go it alone.

 

I'm a little confused on some details though and would appreciate some advice, especially on my figures.

 

I'm pretty confident I have a good case. When the loan was taken out in September 2008 I was not informed that the loan protection insurance was being added (they call it LPI rather than PPI but it seems exactly the same thing). I assumed the figures I was quoted for monthly payments were for the loan and interest only, not LPI. I was never told the repayment figures could be lowered by removing LPI or was given that option. I thought the total amount payable was just over £3000 because of the interest on a loan of £2500, but with the addition of the LPI I later found out I was paying off a full amount of £4480.32.

 

The original breakdown is as follows:

 

Cash Loan - £2500.00

Loan for LPI - £630.6

Total Loan - £3130.65

Monthly repayment (loan) - £74.54

Monthly repayment (LPI)- £18.80

Total montly repayment - £93.34

Number of repayments - 48

Total amount payable (loan) - £3577.92

Total amount payable (LPI) - £902.40

Total Loan - £4480.32

APR 20.5%

 

However, after phoning to check the balance in April this year I was surprised to find it was much higher than I was expecting. I enquired why and was told my payments had been paying off the LPI as well. I am not sure but I think the money I paid each month first paid off the LPI and only then went to pay off the loan amount. does anyone know if this may be correct? I think this may be the case because of the letter I was sent when I closed the loan (by paying off the full amount - my finances had improved in the meantime). The breakdown of the amounts in this letter are as follows:

 

Settlement date - 6 April 2010

Capital plus interest - £2132.45

Early settlement fee - £63.77

Insurance rebate due - £189.30

 

Total balance to close the loan - £2006.92

 

As you can see, they have offered a rebate on the insurance because I paid off early. This must be because I have already paid the full amount of the LPI. Or have I?

 

My opening letter to the Bank is therefore asking for the full amount payable of the LPI plus interest (£902.40) minus the rebate already given (£189.30) which comes to a total I am asking for of £713.10.

 

My questions to the forum are:

1) Do I have a good case? Is there any winning arguments I can use in my opening letter?

2) Are my calculations correct? Have I got the interest and the LPI figures right?

3) What is the deal with this early settlement fee they've tacked on? I'm not very happy about it but I've checked and it is mentioned in the small print of my policy document. Do I have a leg to stand on if I ask for this back in my opening letter as well?

 

I hope someone can help me here. I've never made a claim before and I'm a little nervous about going up against a big corporation. Any advice would be most gratefully received. I'll wait for advice before I send my opening letter.

 

Thank you.

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Hi M-hawk

 

Welcome To CAG

 

It's the weekend so be patient, some of the more experienced guys will

be along to advise.

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You have a good case and it was a single premium policy.

Not so sure on the calculations but if the loan is still active you will only get back what youve paid + interest then the loan will be recalculated.

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Hi M-Hawk,

 

Welcome to the forums. You have definitely done the right thing by deciding to go this alone.

 

The calculations you have done so far are indeed correct, but I would recommend you also charge statutory interest @ 8% per annum. This is calculated on each repayment made from the date of the repayment until the date they settle. As you cannot know that date at this time, for now you can work on todays date for the purpose of submitting your claim.

 

Eg: Repayment of £18.80 on 28th? October 08. So we calculate 8% per annum on £18.80 from 28th October 08 until 26th July 10.

 

There are links on the forum for the calculators, or just google " simple interest calculator"

 

Best of luck

 

DJ

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Compound interest calculator

rests = 12 compounded monthly

dx


please don't hit Quote...just type we know what we said earlier..

 

if everyone stopped blindly paying DCA's tomorrow

the biggest financial industry in the UK, DCA;s would collapse overnight.

 

 

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