Won Lloyds/TSB PPI......

Rsvrbloke

Hi all,
Just a VERY quick question, I have been 'awarded' £1800 by Lloyds/TSB in a PPI claim (thanks so much MSE), BUT....rather than give me the money that I have overpaid, they are taking it off the loan itself. They have said, 'tough' if you have a problem with this decision, then take the case to the FOS! I have done this, but 2 weeks before Christmas I don't want to go through the hassle of paperwork with the FOS.

Any suggestions would be VERY much appreciated.

Merry Christmas to all...............

marshallka

Rsvrbloke wrote: »

Hi all,
Just a VERY quick question, I have been 'awarded' £1800 by Lloyds/TSB in a PPI claim (thanks so much MSE), BUT....rather than give me the money that I have overpaid, they are taking it off the loan itself. They have said, 'tough' if you have a problem with this decision, then take the case to the FOS! I have done this, but 2 weeks before Christmas I don't want to go through the hassle of paperwork with the FOS.

Any suggestions would be VERY much appreciated.

Merry Christmas to all...............

Hi, did you have any arrears or ever have any arrears on this account and was this a goodwill offer or actually admitting misselling? As you say they are offering the money "overpaid" was this supposed to put you back into the position as if you never had the PPI (and 8% statutory interest) OR was it just to cancel the PPI??

They most often do it this way if there are or have been arrears but if not then you should be allowed to have the money YOU have been deprived of paid over to you if this is admitting they missold.

Merry Christmas to you too:xmassign:

Rsvrbloke

Hi, thanks for getting back so quick!
To answer your questions....I have NEVER been in arrears with the loan.
Lloyds/TSB are not admitting to any wrong doing, it's just that I have cancelled the LPI policy as I can get a better policy elsewhere.

They are offering £1865.45 (which they backdated for me!) in full & final settlement.

Just don't know how to proceed with them to get the money into my account rather than Lloyds taking it off the loan!

Thanks so much again............

marshallka

Rsvrbloke wrote: »

Hi, thanks for getting back so quick!
To answer your questions....I have NEVER been in arrears with the loan.
Lloyds/TSB are not admitting to any wrong doing, it's just that I have cancelled the LPI policy as I can get a better policy elsewhere.

They are offering £1865.45 (which they backdated for me!) in full & final settlement.

Just don't know how to proceed with them to get the money into my account rather than Lloyds taking it off the loan!

Thanks so much again............

If all you have done is actually "cancel" the policy then they are correct in taking the remaining PPI off the loan. With a single premium policy its actually another loan to pay for the policy up front to the insurer. You then have it on your agreement and its treated like a loan. When you cancel it you get a proportion of the "remaining" PPI back (not any that you have already paid as this would be a misselling complaint) and this is used to reduce the loan and usually a new loan is drawn up to reflect this. This should be of the same terms and rate as the original but of course with lower repayments. (but you have to understand that the interest that went on the PPI was payable over the WHOLE term of the loan)

Did you make a complaint for misselling?

Rsvrbloke

Hi, yes I did make the original complaint of mis-selling.

I completed one of MSE's templates.

Riggers

marshallka

Rsvrbloke wrote: »

Hi, yes I did make the original complaint of mis-selling.

I completed one of MSE's templates.

Riggers

If your complaint was for misselling and they have offered just to cancel then its up to you if you want to be put back into the position as if you never had the PPI and continue the complaint onto FOS. From what you have posted I don't think they are actually addressing the missell complaint completely and just offering to cancel the PPI??

How does their letter read about the redress?

Rsvrbloke

Hi, in a 'nutshell' my complaint was that 'I was unaware that the Loan Protection Policy was optional'.

Their 'findings' are as follows: 'Lloyds TSB did not lead customers to believe that the insurance was compulsory or that the application for credit would be compromised in the absence of cover.......' Therefore that claim was rejected

'My Concern' was that 'I had alternative insurance put into place and did not need the loan protection'.
Their findings were that the 'seller went through with you an automated process (this is not true, it was ALL done on paper with NO computers used) on screen which relevant information was elicited and warnings were given'......Again, the claim was rejected.

Decision. 'If you choose to cancel your Loan Protection Insurance you would currently receive a rebate of approximately £1336.70, however, as you are a valued customer of Lloyds/TSB I am willing to backdate your cancellation to the date received........., you will receive a rebate of £1865.45'.
'Please note that should you wish to accept this offer, your monthly loan repayments will remain the same, which means that you will repay your loan earlier'.

Hope that that makes some sort of sense!!

Love to hear your thoughts......

di3004

Well done to you Riggers.:beer:

I'm sure Marshallka will be back at some point today to check your post.

Not sure if this is also of any help to you, but below is a link on how the FOS calculates refunds, mostly its the same when succeeded directly with the bank etc.
http://forums.moneysavingexpert.com/showthread.html?t=1596473

Anyway, Congratulations.:beer::xmassign:

Rsvrbloke

Just like to point out as well, Lloyds have stated that they have enclosed the loan agreement form and the terms and conditions of the Insurance policy....only the T's & C's of the explanation of the insurance policy are unsigned by the bank & by me!!! Just a pre-printed document with my name and WRONG address on them!!! They have used my current address rather than the address when I took the loan out!! Crafy !!!!!!s!!

di3004

Rsvrbloke wrote: »

Just like to point out as well, Lloyds have stated that they have enclosed the loan agreement form and the terms and conditions of the Insurance policy....only the T's & C's of the explanation of the insurance policy are unsigned by the bank & by me!!! Just a pre-printed document with my name and WRONG address on them!!! They have used my current address rather than the address when I took the loan out!! Crafy !!!!!!s!!

This is odd, was it an old address of yours hun?

Rsvrbloke

I took out the agreement in 2007 & moved in Nov 2008! They have use the correct address on the actual loan (as this is a copy of the agreement) BUT, they have used my present address in their 'proof' of the terms & conditions of the insurance. Only no-one has signed those conditions where it states......name & signature of advisor!!