Lloyds TSB Offer for PPI

[necrosis]

I'm sure that some of these questions have already been posted + answered here, but I haven't been able to find exact answers to the below points.

So sorry in advance, but I hope you can help.

 

After unsucessfully trying to claim back PPI payments on her credit card, my mum has received a letter from Lloyds TSB with a settlement figure based on 5 loans. But there are some parts to the settlement letter we don't understand.

 

1) The letter states that a PPI Policy was not taken out for any of the loans, and they cannot uphold this part of the complaint.

2) The settlement figure for PPI Premiums paid on the loans also includes interest at 8%.

 

Am I right that a PPI Policy and PPI Premiums are treated differently within the claims process?

Does accepting the settlement mean that:

1) she won't be able to claim against any PPI Policies at a later date?

2) she won't be able to prusue any claim for her credit card loans with the FOS at a later date?

Also, is 8% a reasonable representation of the actual interest rate, or should it be higher?

 

Furthermore, there is some confusing information within the section of the letter saying, "What will happen now?"

Payment will be made in 2 installments:

1) An installment "for the PPI refund relating to any closed loan(s) due redress, plus the additional interest on your live PPI at 8%".

2) A "second installment will be for the refund which is made up of all the payments you paid toward the PPI and the costs attached to this."

 

We would just like to understand more about what each payment is for and what it means more simplistically - none of us are financial experts so don't know what each statment infers...

 

Another comment in the same section is also slightly confusing for us:

"As payment also takes into account amending your loan as if you had never taken out PPI..."

Does this just mean that they will adjust the total amounts of the loans, minus the PPI payments, as if they were never paid, and how does this affect the settlement payment in any way?

 

Overall she is happy with the settlement figure, but I agreed to ask some questions on her behalf before the money is paid without challenging it.

Hope you can help with the above as she has until 5th June, 2012 in which to challenge the settlement figure.

 

Yours Faithfully,

AG

[ims21]

Hi and welcome to CAG...please see my answers in red below

 

I'm sure that some of these questions have already been posted + answered here, but I haven't been able to find exact answers to the below points.

So sorry in advance, but I hope you can help.

 

After unsucessfully trying to claim back PPI payments on her credit card, my mum has received a letter from Lloyds TSB with a settlement figure based on 5 loans. But there are some parts to the settlement letter we don't understand.

 

First off...this credit card....what reasons did they give for not upholding the complaint and what reasons did you give for the mis-sale?

 

1) The letter states that a PPI Policy was not taken out for any of the loans, and they cannot uphold this part of the complaint.

 

Was not taken out?

 

2) The settlement figure for PPI Premiums paid on the loans also includes interest at 8%.

 

Correct....the award should consist of all premium payments made plus the bank's interest paid plus 8% compensatory interest

 

Am I right that a PPI Policy and PPI Premiums are treated differently within the claims process?

 

Forget the policy if they have made an offer....it is what you now get back that you are interested in

 

Does accepting the settlement mean that:

1) she won't be able to claim against any PPI Policies at a later date?

 

Correct...the policies that have been in place are immediately cancelled. You can't of course expect to be refunded for PPI and for the policy to keep running and provide cover

2) she won't be able to prusue any claim for her credit card loans with the FOS at a later date?

 

This claim relates to loans, not the credit card. When did the claim for the card go in and when was it rejected?

 

Also, is 8% a reasonable representation of the actual interest rate, or should it be higher?

 

8% is the rate used under the regulatory route to compensate you. You do get back any interest paid on the loans as a result of the PPI

 

 

Furthermore, there is some confusing information within the section of the letter saying, "What will happen now?"

Payment will be made in 2 installments:

1) An installment "for the PPI refund relating to any closed loan(s) due redress, plus the additional interest on your live PPI at 8%".

 

2) A "second installment will be for the refund which is made up of all the payments you paid toward the PPI and the costs attached to this."

 

Pretty much correct although you should check the figures yourself

 

We would just like to understand more about what each payment is for and what it means more simplistically - none of us are financial experts so don't know what each statment infers...

 

Seems that they are saying they will do one payment for the closed loans and the interest and a second payment for a live loan?

 

Another comment in the same section is also slightly confusing for us:

"As payment also takes into account amending your loan as if you had never taken out PPI..."

Does this just mean that they will adjust the total amounts of the loans, minus the PPI payments, as if they were never paid, and how does this affect the settlement payment in any way?

 

If there is a live loan then the remaining part of the loan is restructured to remove future PPI payments from it. Your monthly repayment should reduce for future payments.

 

Overall she is happy with the settlement figure, but I agreed to ask some questions on her behalf before the money is paid without challenging it.

Hope you can help with the above as she has until 5th June, 2012 in which to challenge the settlement figure.

 

Don't worry too much about the dates they give you.

 

Yours Faithfully,

AG

 

You would also do well to read the thread linked at number 1 in my signature below.

 

Have you got the agreements for these loans?

 

Were they all "stand alone" loans or did they refinance each other?

 

ims

[necrosis]

Thanks for the reply, I'll try to get more details tomorrow.

From what little I know about her claim, she was using one of the PPI Claimback firms (charging 30% of winnings) to pursue the credit card PPI.

A letter was received from the bank saying they would not be awarding anything for this. The PPI Claimback firm said they would gladly take it the FOS and fight it.

I believe this was within the last 30 days.

 

With regards to the loans, I believe 3 of the loans were re-financing previous loans.

 

Strangely, I don't believe an actual request was sent to the bank regarding the PPI claim against these particular loans.

I did hear a couple of months ago that some banks were going to contact customers themselves before they became inundated with numerous requests for back-dated statements / credit agreements etc.

Could this be a case of the bank just saying, 'we know you've been enquiring about the PPI claim for your credit card, here's what you're entitled to on your loans'?

 

All the other answers seem logical to this situation so thanks for clarifying.

I'll try to give you some more information re: credit card claim tomorrow.

 

Regards,

AG

[ukaviator]

What was the name of the claimback firm?