totally unfair lloyds

jools65

Had a claim against Lloyds for mis-selling loan 2 and missing out on an operation claim (where i was off work for a year) and having my loan 2 payments covered, re-payment of PPI on loan 1, and got offered nearly £7000. I accepted after asking the financial ombudsman if i could coose which account i wanted it paid into. He said yes.

Result you would think? No.

Lloyds promptly paid ALL the refund into the LLoyds bank account, which was then imediately closed. I never got asked where i wanted the money put. I just received a letter stating what had been done.

Went through financial ombudsman to get as far as the £7000 offer. It was all jargon. Neither CAB or the FO could understand it and at no time were there any figures on what was being offered as payment.

So i figure not only did i pay the PPI on loan 1 the first time without knowing about it but Lloyds has paid it back in one hand and taken it back with the other by paying it into an account they then shut!

Who can i write to to get this sorted now as the FO thinks its done and dusted but i'm fuming. :mad:

dunstonh

The decision for Lloyds to repay £7000 is one thing. They have paid it into your bank account and done what was agreed. That is job done and a result on your part.

Problem is that your bank account must have been pretty heavily in debt and run badly (in the eyes of the bank). So, the account manager who monitors your account suddenly saw a credit arrive in the account which cleared that. He/she probably didnt even know where it came from. They just saw it as an opportunity to clear a debt they thought was going bad and get the account closed and not let it get back into debt again. So, basically a secondary issue not linked to your original complaint.

You could go back to the adjudicator at the FOS and let them know what has happened and if they are allowed to do that. I suspect they can as it was not paid into the loan but was paid into a current account. However, it does no harm to ask. Although you may find yourself waiting a while for an answer.

jamesd

Did the decision of the FO communicated to Lloyds say that they must let you choose where to put the money?

Did you have an IVA or DMP that included the current account, with you having an obligation to distribute the £7,000 between many different creditors?