PPI claim ?

[Darzen]

I wonder if anyone could give me some advice please.

 

My mother took out a loan in July 2004 (Lloyds Bank) and took out PPI, my brother is claiming back his mis-sold PPI and my mother was wondering whether she would be able to make a claim.

The PPI was £3500 added to the loan.

 

I have read some stickys and have come up with a couple of reasons why she may be able to make a claim.

 

She was not working at the time the loan was taken out.

The loan was for seven years , a video on a sticky said that the PPI usually only lasts 5, she was not told this.

 

I can get more info if needed.

 

Any advice appreciated.

[silverfox1961]

I was under the impression that PPI would pay out if you lost your job or had to take time off sick so I can't see how this PPI could have been used.

 

I would put in a claim using the interest they charged your mum and compound it over the years. It could turn into a nice sum. Nothing guaranteed of course.

 

If you don't know how much has been paid so far, SAR them

[Darzen]

Ok thanks, will let her know, she has got a statement so i'll try and work out how much has been payed.

[Darzen]

Got some more details.

 

The loan was for £13,000 with £3,503.73 PPI added on top

Interest at 9.51%

Paid off so far 74 months, with 10 to go.

 

Could anyone work out how much PPI has been paid including interest.

What does she need to do next ? Letters etc.

[dj1971]

Darzen,

 

By my calculations, and in line with the guidelines of the FOS your claim should be:

 

Cost of PPI: £3,503.73

Compound interest: £1,308.03

8% on monthly repayments: £1,060.05

 

Total claim = £5,871.81

 

Get your mum to send in a claim stating the reasons she believes it was mis-sold.

 

Good luck

 

DJ

[Darzen]

Will do, Thanks for your help.

[dj1971]

Nice1, keep us updated with your progress.

 

DJ

[Darzen]

Is this ok ?

 

my mums address

Lloyds address

 

 

Account No : xxxxxxxxxxxxxxxxxx

Loan Amount : £13,000

PPI : £3,503.71

 

 

 

Dear Sir/Madam

 

I wish to make a claim for the Payment Protection Insurance that was added to the loan I took out with yourselves in July 2004 as I believe it was mis-sold to me.

 

As I was not working at the time of taking out the loan I would not have been able to take the full benefits of the Payment Protection Insurance.

 

The claim is for the amounts below.

 

Cost of PPI: £3,503.73

Compound interest: £1,308.03

8% on monthly repayments: £1,060.05

 

Total claim = £5,871.81

 

Yours faithfully

 

Xxxxxx xxxxxxxxx

Edited September 25, 2010 by Darzen

[dj1971]

Looks good to me. Just add in a line about wanting to cancel the PPi.

 

Good luck

 

DJ

[Darzen]

1 More thing before letter is sent tomorrow. Do I send it to the branch that the loan was taken out or send it elsewhere ? I have seen around 15 different addresses so thought it would be easier to send to the local branch.

[dj1971]

Personally I would send it to customer service address, but entirely your choice.

 

I have never had any dealings with Lloyds, but I know at my own bank things have a nasty habit of going missing.

 

DJ

[Darzen]

Ok thanks, got the customer relations address.

[Darzen]

Sent the letter to customer services and got a reply a day later. It says sorry to hear of your complaint, i will pass it on to a the person who deals with this, we will contact you within 8 weeks blah blah blah.

 

So it is 40 days starting from 30th September, will keep you posted.

[Darzen]

Had an offer already , going up my mums to see how much, will edit later

[Darzen]

There are no figures in the letter but here goes

 

They have offered a refund on the PPI payments paid to date ( £3125) plus simple interest at 8% per annum on each of the PPI monthly payments.

 

It says that this is their final response and the complaint is now closed. In the event that we do not accept the offer then we have the right to refer the complaint to the FOS.

 

My mum is willing to accept the offer rather than wait months for the FOS to look at the case.

[dj1971]

Darzen,

 

It is of course entirely your mums choice on whether to accept their offer or not.

 

However they are leaving out the compound interest element which is £1,300 of her money they are proposing to keep and which she is entitled to.

 

Yes it will most likely be a long drawn out process going through the FOS and from what I have read in some other posts, the FOS were seemingly siding with Lloyds on this one. However others have fought and won their cases on claiming back compound interest, as you will see if you read some of the other posts on here.

 

I seem to remember Landlady has quite some experience in this field. Might be worth sending her a pm and asking for guidance.

 

There is also one other option open to your mother, which is the small claims court route. Depending on the amount of the claim, it will cost roughly £65 to register her claim. I suspect there is quite a high likelyhood that Lloyds will cave in and settle out of court just before the case gets to hearing stage. They certainly do not want a court ruling against them on PPi, as this could well open the flood gates to other claims.

 

But at the end of the day, it is entirely your mums choice which course of action to take.

 

If she is happy to accept their offer and leave it at that, then this is her right.

 

DJ

[Darzen]

I think she is just going to accept the offer as she's going on holiday in 4 weeks and the money will come in handy. If it was me i'd probably fight it but it's not my decision.

 

Thanks for your help dj, a donation will be made as soon as the money comes through.

[labasblue]

Hi Darzen

 

Well done and so fast I am just starting a claim against lloyds and would like the address you sent your claim of to please.

 

Thanks

Labasblue

[Darzen]

Here it is

LTSB, Customer Relations, 2 Brindleyplace, Birmingham, B1 2AB.

 

Good luck

[Darzen]

Got a letter today with the final settlement figures.

 

1. £4297.50 Actual payments made ( this must include interest )

2. £1068.88 @ 8% simple interest

 

Total £ 5366.68

 

So a good result in the end. Will contribute as soon as it's paid ( up to 21 days)

 

Thanks for all your help.

[Darzen]

Apologies if posted twice.

Got a letter today with the final settlement figures.

 

1. £4297.50 Actual payments made ( this must include interest )

2. £1068.88 @ 8% simple interest

 

Total £ 5366.68

 

So a good result in the end. Will contribute as soon as it's paid ( up to 21 days)

 

Thanks for all your help.

[Darzen]

Got a query about the letter, can't quite work out what they're doing.

 

1. £4297.50 - This is the amount i have calculated that you paid for the policy during the period that the policy was active.

 

2. £1068.88 - This is an additional payment of 8% simple interest which we have calculated on the amount that you paid for the policy during the period it was active.

 

Your refund has been calculated in two seperate amounts. £3503.73 will be paid directly to your loan account in order to cancel the policy. This means you will not make any future payments for the policy. A few days later we will take £4297.50 from your loan account and pay it into your current account. The 8% simple interest payment will be paid directly to your current account.

 

What we don't get is they are paying in to the loan account less than they are taking out, does this mean that the outstanding amount will be more now ?

 

Sorry if i'm being thick.

 

Edit : There is around £2100 outstanding on the loan.

Edited October 27, 2010 by Darzen

[dj1971]

Congrats Darzen.

 

DJ

[Darzen]

Got first payment of £4297.50 today ( that was quick)

 

Still baffled on what they are doing tho. If they put in £3503.73 into the loan account and the balance is £2100 approx then it would be £1400 in credit, then they take out £4297.50 . Does that mean there's £2,800-ish outstanding ?

 

Because that would mean my mum owes more on the outstanding balance. Just don't understand how they are doing it.

[Darzen]

It's ok, sussed it out now ( I think )

 

She gets £5366.68 plus they credit the loan account with the original PPI cost ( £3503.73 )

 

So my mum will be £1400 in credit on her loan account if i'm correct.