PPI mis-sold, applicant deceased

[Shelley181146]

I have been approached by a good friend because of my experiences with banks and claiming PPI and unfair charges but I would like to run this by my family of Caggers please.

 

My friends mother took out a small loan(Llyods TSB) back in Aug 2009 and repayments included PPI (I have seen agreement) but she was retired and in receipt of a pension at the time so PPI should not have been applied.

 

Unfortunately she was taken ill in the Autumn and one payment was missed/late. However her son paid the loan off in full and the late collection activity charges of £25 was refunded.

 

It is not clear whether he got a settlement figure or just paid the balance outstanding from the most recent statement he had (I am looking into that) but I have a few questions please;

(1) If balance from recent statement paid, should Lloyds TSB have refunded difference on the account once they had done their re-calculations?

(2) As her son is dealing with her affairs (as executor of her will) due to her death Autumn last year, can he claim for mis-sold PPI in these circustmances or is it too late?

 

Has anyone else been in similar circumstances?

 

Shelley

[ims21]

You should always ask for a settlement figure. Depending on how the loan is structured, there may be an interest rebate relevant to the account. In addition it means that written confirmation of the closure of the account on a certain figure can be obtained from the bank.

 

If the PPI was useless then the estate should reclaim that and the proceeds go into the estate.

[Shelley181146]

Thanks ims21. I've just been advised a letter was not involved - a visit to the branch whereby the advisor told him the balance there and then and it was paid immediately by debit card. Do you think this would of involved the interest being recalculated in accordance with proper procedures?

 

I wasn't sure if monies could be claimed for decesaed relatives, albeit, I understand it would go to their estate.

 

They have completed the questionnaire and sent that off a couple of days ago and now await their reply. Nowing Lloyds TSB that isn't going to be very soon is it? lol.

[ims21]

Might be an idea to request a written statement of the settlement figure. That way you will have full documentation for the accounts of the deceased's estate...just in case there are any issues in the future.

 

A claim is not being made by a surviving relative as such...it is being made by the executors of a deceased's estate and the executors are ensuring that the estate ends up with all that it is entitled to.

[Shelley181146]

Might be an idea to request a written statement of the settlement figure. That way you will have full documentation for the accounts of the deceased's estate...just in case there are any issues in the future. That sounds like a very good idea to prove to anyone that her estate was handled correctly and in her best interests.

 

A claim is not being made by a surviving relative as such...it is being made by the executors of a deceased's estate and the executors are ensuring that the estate ends up with all that it is entitled to.

Gotcha, Understood.

 

Thanks ims - that makes sense.

 

Just as a matter of interest, if an estate had already been settled and something like this came to light, is there any timeframe that should be considered do you kinow?

[ims21]

I would guess that the estate could operate the same as an individual.

 

The way I would look at it is that the deceased had still been "done" by the lender and as a result of their conduct the estate suffered as a result and therefore so did any beneficiary.

 

Given that the executors have a duty to ensure that the estate is in order I would say that the same rules would apply as those to a living person.

[Shelley181146]

Thats great thank you.

 

Am I correct in thinking they would only be eligible to 8% standard interest in these circumstances or could they push for Interest in Restitution?

[ims21]

It would have to be court to get the higher rate of interest. To be honest I am not sure about the law on executors suing on behalf of an estate.

 

Other wise it will be the standard regulatory award of premiums paid plus any interest charged as a result and 8% on top of that.