should i carry on?

james26_2

Hi all, i'm new to this forum but on this sites advice i wrote a template letter to my bank(lloyds TSB) to try and claim my PPI back.
Every few weeks they sent me a letter saying they were dealing with my request but didn't yet have a decision until today they've offered me a "rebate" which is a decent amount but from what i can see its just cancelling the PPI from the date i complained and paying it into my loan meaning my loan will end slightly sooner ignoring the thousand pounds or so i've already paid them.
Is this normal? Although this like i said will shorten the term of my loan they're not actually compensating any of the wrongly paid payments are they?
Any help would be appreciated.
Thanks

james

di3004

james26 wrote: »

Hi all, i'm new to this forum but on this sites advice i wrote a template letter to my bank(lloyds TSB) to try and claim my PPI back.
Every few weeks they sent me a letter saying they were dealing with my request but didn't yet have a decision until today they've offered me a "rebate" which is a decent amount but from what i can see its just cancelling the PPI from the date i complained and paying it into my loan meaning my loan will end slightly sooner ignoring the thousand pounds or so i've already paid them.
Is this normal? Although this like i said will shorten the term of my loan they're not actually compensating any of the wrongly paid payments are they?
Any help would be appreciated.
Thanks

james

Hi James and welcome.;)

First of all well done.:beer:

It seems that with lloyds and if the account is still active, they tend to do it this way, but if your not in arrears (missed payments) you can actually request they refund the PPI and interest directly to you.

Did they actually admit liability to mis selling the PPI?

Maybe this is why they are doing it like this way otherwise.

However, if your not happy, let them know this and request that they refund this directly to you, if they don't you can of course take the case to the financial ombudsman service (FOS).
It may be worth you reading other Lloyds TSB threads as well to give you an idea, where this many be similar to other posters on here.;)

Good luck, please keep us posted.

marshallka

di3004 wrote: »

Hi James and welcome.;)

First of all well done.:beer:

It seems that with lloyds and if the account is still active, they tend to do it this way, but if your not in arrears (missed payments) you can actually request they refund the PPI and interest directly to you.

Did they actually admit liability to mis selling the PPI?

Maybe this is why they are doing it like this way otherwise.

However, if your not happy, let them know this and request that they refund this directly to you, if they don't you can of course take the case to the financial ombudsman service (FOS).
It may be worth you reading other Lloyds TSB threads as well to give you an idea, where this many be similar to other posters on here.;)

Good luck, please keep us posted.

Di, you can not ask for a rebate of PPI to be paid direct to you cause its the PPI that you have "not" yet paid.

marshallka

james26 wrote: »

Hi all, i'm new to this forum but on this sites advice i wrote a template letter to my bank(lloyds TSB) to try and claim my PPI back.
Every few weeks they sent me a letter saying they were dealing with my request but didn't yet have a decision until today they've offered me a "rebate" which is a decent amount but from what i can see its just cancelling the PPI from the date i complained and paying it into my loan meaning my loan will end slightly sooner ignoring the thousand pounds or so i've already paid them.
Is this normal? Although this like i said will shorten the term of my loan they're not actually compensating any of the wrongly paid payments are they?
Any help would be appreciated.
Thanks

james

Its seems all they have done is actually cancel the remaining PPI from your loan and nothing more so they cannot pay it over to you as this has not yet been paid to them. It is the remaining PPI that you would have paid over the term of the loan and certainly nothing like winning on a missale. If you won misselling then they would return to YOU the PPI you have paid to date with interest and usually 8% statutory interest too and then the remaining PPI is then taken from the loan and a new loan drawn up to reflect this. If you still are positive on the misselling then I would just write to them again and state that you will take it to FOS if they do not agree. They still have to cancel the PPI regardless so really you have nothing to lose.

Good luck

marshallka

Another way of saying this where a company offers to give you a rebate against the PPI is to look at the PPI and interest on the PPI as another loan (which it is when a single premium is added).

You then work out the total cost of the PPI with interest and you repay this over the full term of the loan. If say the cost the PPI was £5000 (actual PPI premium) and £4000 interest paid over the term on the PPI and this was paid over a ten year loan (most often only covering 5 years of it) then it would be about £75.00 per month (75 x 120 = 9000) that you would be paying.

Say you paid for 40 months of the loan and cancelled the PPI. They would give you a rebate against the PPI BUT this rebate is mostly only on the actual premium so you would be rebated for the other 20 months (as the premium only covers 5 years) that would be owing on the PPI. Say they paid it all back (sometimes rebates are only 78%) it would be £5000 divided by 60 months = £83.33, you have paid back 40 months and you still owe 20 months then your rebate would be the 20 months owing being 83.33 x 20 = £1666.60.

Not a lot back and this is not in your pocket either, its used to reduce your loan balance. The total cost of the PPI and interest is £9000 - the rebate back to your loan £1666.60 so they have still made an awful lot out of you being £7333.40 to cover your loan for 40 months.

Hope this helps.;)

di3004

marshallka wrote: »

Di, you can not ask for a rebate of PPI to be paid direct to you cause its the PPI that you have "not" yet paid.

Oh dear......:o, apologies James, my slip up here, mis read here somewhere haven't I?:o
Thanks of posting back on this Marshallka, and rectifying this, cheers.;)XX

james26_2

Thanks for all your help. Another question though. Do you think i should just send a letter saying that i was misled the PPI and i want them to look at it again?
The thing is i'm in the middle of waiting for a visa for Australia to come through and when it does i'll be making plans to emigrate pretty much straight away as my girlfriend has already gone and is waiting for me in perth so i nedd to tie this up really, i dont want to be in the middle of this when i have to leave for the sun.
But a thousand or so pounds is a lot of money and i have been wrongly paying it.
So does anyone know how long this might take? It took 3 months to get to this point!
Thanks

James x:money:

di3004

james26 wrote: »

Thanks for all your help. Another question though. Do you think i should just send a letter saying that i was misled the PPI and i want them to look at it again?
The thing is i'm in the middle of waiting for a visa for Australia to come through and when it does i'll be making plans to emigrate pretty much straight away as my girlfriend has already gone and is waiting for me in perth so i nedd to tie this up really, i dont want to be in the middle of this when i have to leave for the sun.
But a thousand or so pounds is a lot of money and i have been wrongly paying it.
So does anyone know how long this might take? It took 3 months to get to this point!
Thanks

James x:money:

Yes James, you can.;)
No harm in doing so.

Wow so your off to OZ then?
I would love to go there, however we do have family that run farms over there.
All the best with this, the quicker they get it sorted the quicker you can reunite with your other half.:beer:

Good luck.