Lloyds TSB ppi offer. do i accept?

sandblastedskin

hi.

about 4 months ago i complained to lloyds, via their own phone helpline, about the ppi on my loan which i have since paid off. this morning i got a letter saying that although they do not accept my mis-selling claim, as a gesture of goodwill they will offer me £238.88. do i accept this? the loan was originally for £7,500 and much to my disgust had the insurance as a lump sum on top of the total cost so i paid interest on it. something i didnt realise, even at the time of complaint. Over 4 1/2 years this loan cost me over £12,000. When i paid off the remaining balance in a lump sum, the collections dept not only paid off the loan but closed my overdraft aswell, without telling me, then charged me for going overdrawn. it took them 10 weeks and over 20 visits to finally get it closed after the payment cleared. because of this and many other problems with the incredibly unhelpful foreign call centre, im loathe to accept an amount which i believe is a fraction of the ppi cost. any advice would be welcome.

thanks
dean.

di3004

sandblastedskin wrote: »

hi.

about 4 months ago i complained to lloyds, via their own phone helpline, about the ppi on my loan which i have since paid off. this morning i got a letter saying that although they do not accept my mis-selling claim, as a gesture of goodwill they will offer me £238.88. do i accept this? the loan was originally for £7,500 and much to my disgust had the insurance as a lump sum on top of the total cost so i paid interest on it. something i didnt realise, even at the time of complaint. Over 4 1/2 years this loan cost me over £12,000. When i paid off the remaining balance in a lump sum, the collections dept not only paid off the loan but closed my overdraft aswell, without telling me, then charged me for going overdrawn. it took them 10 weeks and over 20 visits to finally get it closed after the payment cleared. because of this and many other problems with the incredibly unhelpful foreign call centre, im loathe to accept an amount which i believe is a fraction of the ppi cost. any advice would be welcome.

thanks
dean.

Hi dean

This is lloyds all over.

Personally if that were me I would write back and ask if they are prepared to pay the whole lot of PPI plus interest, or at least higher the offer.

I bet there is a few grand difference there.

However, they have not admitted liability to mis selling so this is why they have offered you a gesture of goodwill, but you can always go to the financial ombudsman service (FOS) if your not satisfied with this offer and if they do not higher this to more of a reasonable offer.

You can always tell them (that's if you were not happy with this amount), that you strongly believe you were mis sold the policy and stand by your reasons, and feel if they are unable to offer a more of a reasonable amount you will go all the way to the FOS for them to investigate this for you.

Lloyds are known for these offers and in my opinion that is a low offer possibly compared to what it was.
I would also ask them as well for a Full written breakdown of calculations on your loan when this was settled, so you can see how this was calculated, where this should also disclose the PPI information.

Its up to you here, but you know you always have the FOS if they do not resolve this in the result you want out of this.

Just to make you aware though, the FOS may take a little while to investigate, but it may all be worth it in the end.

Good luck either way, and please keep us posted, cheers.;)

sandblastedskin

thanks.

if it was just a case of mis-sold ppi then i would have probably taken it, but after all the agro ive had regarding my current account aswell as my loan, the more angry militant part of me wants to chase then for everything i can. thats what they did with me when i was in financial trouble.
if i do decide to tell them i think they should pay out more, will i lose the option to take the £238 if they refuse? its not alot of money but its better than nothing and im not inclined to throw it away.

thanks again.

di3004

sandblastedskin wrote: »

thanks.

if it was just a case of mis-sold ppi then i would have probably taken it, but after all the agro ive had regarding my current account aswell as my loan, the more angry militant part of me wants to chase then for everything i can. thats what they did with me when i was in financial trouble.
if i do decide to tell them i think they should pay out more, will i lose the option to take the £238 if they refuse? its not alot of money but its better than nothing and im not inclined to throw it away.

thanks again.

Hi Dean

If it were mis sold and they admitted to it then they would have to repay all of the PPI and interest back that you have paid to them.

I do not know your reasons for mis selling but the FOS will investigate if you want them to, and look at both sides, but lloyds complaints are extremely high and so far there have been many successful with the FOS.

I did not resolve my case direct with lloyds and they denied mis selling, but the FOS seen this in my favour and they repaid every penny back plus the interest.

I think you should be okay to be honest, but its entirely up to you in how you feel about this personally, or see what others on here have to say, once they come along.;)

sandblastedskin

i complained because when i took out the loan, they told me the insurance would cover me if i was out of work either sick or unemployed after a qualifying period. however, when i off work for a couple of weeks with a chest infection, i tried to claim and was told i couldnt as i didnt meet the criteria. i tried again after losing my job and was again told i couldnt claim. i estimated after geting a statement of account through that it had cost me over £1000 to not be able to claim. the month that was off sick also cost me over £100 in charges on my current account the following month because i didnt have enough money to pay everything and having a place to live was more important than paying the loan. That was pretty much the beginning of my lloyds troubles.

di3004

sandblastedskin wrote: »

i complained because when i took out the loan, they told me the insurance would cover me if i was out of work either sick or unemployed after a qualifying period. however, when i off work for a couple of weeks with a chest infection, i tried to claim and was told i couldnt as i didnt meet the criteria. i tried again after losing my job and was again told i couldnt claim. i estimated after geting a statement of account through that it had cost me over £1000 to not be able to claim. the month that was off sick also cost me over £100 in charges on my current account the following month because i didnt have enough money to pay everything and having a place to live was more important than paying the loan. That was pretty much the beginning of my lloyds troubles.

Dean you have good reason here and I'm almost 100% certain the FOS would be on your side here, you were paying for something that did not cover you and it was "worthless" and very "costly".

If I were you however like I said I would write to Lloyds and tell them due to these reasons you feel the offer is far too low for what the amount was and if you are unable to refund me the whole of the PPI plus interest and 8% of what a court would award you will take this matter to the FOS to investigate along with all your evidence.;)

That is dreadful what you have been through.
You decide what you feel is best for you, the very best of luck and please keep us posted and let us know how you get on, cheers X