Skyrocket's brother v Lloyds

[Skyrocket1]

I did have a thread about this ages ago but I can't seem to find it!

 

Am helping my brother with this claim they have offered a figure finally!

 

BUT they are disputing the interest and say:

 

We have reconstructed what the balance of your credit card would ahve been if PPI had not been without PPI, by removing any PPI premiums and interest or charges in respect of those premiums.

 

Then goes on about 8% simple interest.

 

As shown above interest at the rate of 8% simple is only applied when your credit card balance moves to a credit position once the PPI etc was removed.

 

Now this is a big claim and the interest charged on this account was massive.

Are they correct in what they are saying?

I don't understand what the balance of the account has to do with anything?

[Skyrocket1]

Anyone please?

[ims21]

This is a credit card yes?

[Skyrocket1]

Sorry yes it is

[ims21]

Ok so what you would get back under a regulatory award is as follows:

 

1 -> All of the premiums

 

2 -> The contractual interest charged as a result of those premiums.

 

3 -> The account would be reconstructed with the PPI and associated interest removed. If for any period (usually one month) the reconstructed account shows a credit balance, you would be awarded 8% simple on that credit balance for that period.

 

4 -> If the account has been closed and paid off, there will be a difference between the reconstructed balance and the balance actually paid. You would get 8% simple on that difference running from the date of settlement of the account right up to the date of settlement of the PPI claim.

[Skyrocket1]

Ok well they never offered the contractual interest (24.9%) only the simple.

 

Figures were approx £8k in ppi

Interest was calculated to be £31k!! The card is still running and in debt.

 

They have said:

We have calculated the difference between the actual current balance (around £9k) and the revised balance totalling £24k

If that produces a credit balance for any period, we then include credit interest on that balance for the relevant period at the rate 8% simple interest per year totalling £1500

The proposed offer would be £26k.

 

I'm not going to pretend I understand what they mean, I just had the figure at around £40k!

[ims21]

Normally an offer letter is set out something like....

 

 

Premiums paid (charged) £x

Interest £y

8% Statutory interest £z

 

Maybe post yours up minus all personal information of course.

[Skyrocket1]

They never mention contractual it just simply says:

 

The calculation is as follows:

 

Difference between the actual and revised balance £24k

Interest calculated at 8% £1500

Total £25,500

 

(amounts are approx obviously)

[Skyrocket1]

Reading that back it might look like they've written off the debt in that (maybe?) but they haven;t they suggested he pay the card off with his payout.

[ims21]

Yes it is another way of saying it as the difference between actual and revised should be the premiums and the contractual interest.

 

If it were me I would be demanding their detailed breakdown i.e. premium by premium so that you at least have a chance of checking whether their offer is correct.

[Skyrocket1]

Ok. Will do.

 

It's a fantastic amount but not as fantastic as the £40k I had calculated originally!