bank error in your favour

[jet_force_juno]

Hello everyone,

 

am in the process of claiming just over £2500 from Lloyds for unfair charges. Am waiting until the 1 November to file my money claim so as to include charges for this month. But that aint why I am writing...

 

I took out a Cash Loan with Lloyds in July 2005 for £2500. I DID NOT request Loan Protection Insurance...

Recently I realised that, low and behold, I had been paying LPI! I requested a copy of my original signed loan documents and what do you know, the section whch asks the customer to tick the box for LPI - AINT FRIKKIN TICKED!

 

SO here's how it breaks down. Over 60 months at 17.9%...

 

£2500 borrowed x 60 months at 17.9% = £3697.20 to repay PLUS

LPI on Loan over 60 months = £657.06 x 17.9% = £972 to repay

 

Total amount of loan £4669.20...

 

So I write and complain that I want the LPI cancelled straight away and the amount of LPI I have paid refunded to my current account.

 

The bank responded earlier offering me a refund of £4669.20 plus ex gratia interest... they have asked me to sign a decleration accepting the amount They have quoted this amount twice in the body of the main letter and once on the decleration which I have to sign, date and return.

Now the bank have made a clear error. They should have credited the LPI to my loan account (the 6£57.06), but instead have offered to credit the WHOLE amount owed.

As the loan has been running for 14 months already I have already paid over £1000 off. If the loan was settled now the amount repayable would be £2433.64. My branch told me that if the £4669.20 is credited to my loan account it will pay off the £2433.64 and the remainder: £2235.56 will show up in my current acount.

When I contacted the actual complaints people to query it, they said the offer of 4669.20 was "human error" and hasitly offered to pay the £657.06 (for my LPI) into my current account instead as well as cancelling the LPI...

 

My question is this. Clearly being a man of NO sympathy for the crooks at Lloyds (I will take these b******** for every penny. I never had any sympathy from them apart from whacking £35 charges for apply for my "human errors").

Is this letter legally binding? i.e. will Lloyds have to honour this offer once I accept it?

 

Cheers

 

jet

[reidnet]

It is possible that due to their error and mis selling of PPI that the Agreement is unenforceable...(Null & Void)

 

The FSA and OFT have just Yesterday issued reports and findings on PPI policies and it makes interesting reading..The banks are going to get hit hard I recon..

 

Ive got one ongoing at the moment for mis selling of PPI and cant say too much about it at this stage with the legal side thats going on.. The national press are interested in the case I have ongoing and am meeting with them next week.. The Daily Record are doing a story on the mis selling and real costs of these policies. Maybe though the one Im fighting will not like the press involved..so cant say much more till after further discussions at start of next week.

[jet_force_juno]

yeah i read that to. Lloyds are going to cancel my LPI, but my question is once something is offered by the bank is it legally binding? They have offered me the same figure three times, it aint even like it is a mis-print...

[reidnet]

yeah i read that to. Lloyds are going to cancel my LPI, but my question is once something is offered by the bank is it legally binding? They have offered me the same figure three times, it aint even like it is a mis-print...

 

I personally would accept it ..Call it compensation for their bad practise..

[livelylad]

The offer is not legally binding because you have told them!! and they have corrected their offer. What would have been interesting is if you had not told them.

[jet_force_juno]

no they have not corrected it. I have told them not to send me any further offers until I have considered fully the offer they have already sent me.

 

They have told me that if I accept the offer of the 4669.20 they will refer the case to the Ombudsman. Lloyds being the d**** they are told me to phone the Ombudsman direct for advice...

 

Of course the Ombudsman does not offer advice to the general public.

 

My feeling is to write back to Lloyds accepting the offer and just see what happens from there...

[Dappa44]

Why the hell did you tell them they made a mistake????

 

If it were me i would have the £4600 in the bank now and said nowt after what they get up to.

[mooreda]

Write to them accepting their offering in full and final settlement of your complaint. If they realise at a later date they made a mistake you can plead ignorance! Put the additional monies in a high interest savings account just in case but if it did come to light they made a mistake I wouldn't give in and give it back because they wouldn't have a leg to stand on! Keep us informed how things go (also do a bit of research on how they stand legally with regards to the recovery of money as I am sure they can't recover money that they paid out in error where the customer would not be expected to realise they have been overpaid)...... this is where you plead ignorance

[jet_force_juno]

Why the hell did you tell them they made a mistake????

 

If it were me i would have the £4600 in the bank now and said nowt after what they get up to.

 

ummm, i didn't... I phoned up to query another point in the letter and that's when they realised. The lady who wrote the letter told me that the bank would have picked up the mistake anyway before the refund was applied.

 

I received no correspondence from Lloyds this morning about this matter, so I assume they will not be sending me out any letters retracting the offer or making a different offer. IF they were going to do that they would have done so hastily and I expect I would have had something this morning.

It is all academic now anyway. I have been back in to my branch who have confirmed that the letter will be legally binding.

As such I posted back the acceptance form with a covering letter via special delivery first thing this morning.

 

I still feel that the bank will not play ball but we will see. I will keep you posted.

[Dappa44]

Fingers crossed for you mate, it will be tremendous if you get it all.

 

It will certainly stick one up them