Received a low offer from Lloyds TSB for PPI rebate, What should i do ?

tysfoot

Hi,

I took out a loan in 2001 and i have wrote to lloyds TSB to recalim my PPI, After waiting 8 weeks i finally got a descion today, the main points from the letter are below:

Loan amount £5,500.00
one off premium if £1,289.73 plus inteest

Decision.
when you settled your load in 29th jan 2004 you receieved a net rebate of on your loan protection insurance for £247.36 This was used to reduce yur loan settlement figure

When you bought the policy it was explained to you that this rebate was based on a sliding scale due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a favourable rebate on a pro rate basis as A gesture of goodwill on this occasion


A pro rate rebate would have amounted to £589.39

We would like to offer the difference of £342.03


from what i have read from the letter i dont understand why it has gone down from £589.39 to £342.03 with no interest added

Do you think i should take this to the FOS ?
Do you think they are trying to fob me off ?

I dont like the term used "However we are prepared to offer you a favourable rebate on a pro rate basis as A gesture of goodwill on this occasion"

Thanks for your advise people

di3004

tysfoot wrote: »

Hi,

I took out a loan in 2001 and i have wrote to lloyds TSB to recalim my PPI, After waiting 8 weeks i finally got a descion today, the main points from the letter are below:

Loan amount £5,500.00
one off premium if £1,289.73 plus inteest

Decision.
when you settled your load in 29th jan 2004 you receieved a net rebate of on your loan protection insurance for £247.36 This was used to reduce yur loan settlement figure

When you bought the policy it was explained to you that this rebate was based on a sliding scale due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a favourable rebate on a pro rate basis as A gesture of goodwill on this occasion


A pro rate rebate would have amounted to £589.39

We would like to offer the difference of £342.03


from what i have read from the letter i dont understand why it has gone down from £589.39 to £342.03 with no interest added

Do you think i should take this to the FOS ?
Do you think they are trying to fob me off ?

I dont like the term used "However we are prepared to offer you a favourable rebate on a pro rate basis as A gesture of goodwill on this occasion"

Thanks for your advise people

Hi there

Have they sent you a full detailed written breakdown of what you repaid in PPI at all, or just the figures?

If not ask for these, but whatever you paid in PPI, also interest you should be entitled to this if they have accepted liability of mis selling the PPI.

Of course if your not happy, you can take it to the FOS, please be aware it can take some time, due to the large volumes of these complaints, but if your in hardship let them know and request fast tracking.

Or ask Lloyds to reconsider if that was not the final decision.

Good luck please keep us posted.;)

celtic_harridan

Hi all!

Today I received the final response letter from LTSB. Like Tysfoot, they've offered me a pro-rata rebate, of £560 (or so). There's no mention of interest, and it's nowhere near the amount of PPI I've paid to date.

I am definitely out of pocket due to the PPI, so I'm going to contact FOS and try to get more back that way, even though I realise it takes a lot longer.

Can I still cancel the PPI policy after complaining to the FOS?

di3004

celtic_harridan wrote: »

Hi all!

Today I received the final response letter from LTSB. Like Tysfoot, they've offered me a pro-rata rebate, of £560 (or so). There's no mention of interest, and it's nowhere near the amount of PPI I've paid to date.

I am definitely out of pocket due to the PPI, so I'm going to contact FOS and try to get more back that way, even though I realise it takes a lot longer.

Can I still cancel the PPI policy after complaining to the FOS?

Hi there

Sorry to hear that.

Yes you can still ask to cancel the PPI, write to them about this.

I do understand though with Lloyds it may be as the loan is still active, their procedures is that if you want to cancel, to take out a new loan to pay off this one, the new loan will be without PPI, so if this is the case make sure the loan is equal to the existing rate or better.

Then of course it should then be the fact that, you continue to reclaim on the PPI on the existing loan which would then be a settled loan if you went ahead with the above process with them, and they would then refund the amount owed directly to you.

See what others have to say on this as well if you want to.
You could however wait until this is resolved first if you want to.

If your in hardship, let the FOS know and request for fast tracking.

You can download the complaints form from their website or ring to arrange they post you this:
http://www.financial-ombudsman.org.uk/consumer/complaints.htm
Remember to enclose copies of correspondence as well and anything you have in copies, also a copy of your agreement if you have this.;)

Basically, if this was the "Final response" from Lloyds, go to the FOS if your not happy with the outcome, otherwise if not the final decision, keep trying with them, good luck, please keep us posted.;)

celtic_harridan

Thanks as ever Di for your quick answer!

It's definitely the FINAL RESPONSE, they now consider the matter closed.

Just let me double check with you that I've understood the PPI cancellation:

1. Cancel existing loan with PPI.
2. LTSB will offer another loan without PPI, so I can pay off the original.
3. Take original PPI complaint to FOS; as this loan is/will be classed as settled, I'll get back the full amount paid to me personally if the complaint is upheld.

di3004

celtic_harridan wrote: »

Thanks as ever Di for your quick answer!

It's definitely the FINAL RESPONSE, they now consider the matter closed.

Just let me double check with you that I've understood the PPI cancellation:

1. Cancel existing loan with PPI.
2. LTSB will offer another loan without PPI, so I can pay off the original.
3. Take original PPI complaint to FOS; as this loan is/will be classed as settled, I'll get back the full amount paid to me personally if the complaint is upheld.

Your welcome hunni.;)

Yes you have it in one, although it may differ, so its worth getting other opinions on this as well, normally this is the procedures with lloyds on cancellation, but its up to you if you want to wait for the FOS to sort this out for you first and take it from there as the FOS may request that lloyds do this differently.

I am hoping you will have more posts on this, fingers crossed hunni.:beer: