LloydsTSB loan PPI - What do they owe me?

ejc81

Hi all,

I've made a claim against lloyds for PPI that they put on a loan I had in 2004. The loan was for £15,000 then the PPI was nearly £3500 on top of the loan! So basically I ended up with a loan of nearly £18,500:(

They've just made me an offer for £800:rotfl:

Now I know they are taking the P, but what I don't know is how much they actually would owe if my claim was successful in court.

How do I work out £3500 plus the apr @ 8.7% they charged on top of it from 2004.

PLUS the 8% statutory interest on top of that since 2004?

When I read the ppi reclaiming guide I thought it said the bank would know? In my case they obviously will know but they are not telling me:mad:

Even my tiny brain can work out that £800 is nowhere near £3500 plus years of interest;)

Can anyone please help work out roughly the figure that I am owed?

Thanks in advance:)

Andrew_Thomas

you need to split the monthly payment between the loan and the policy then each monthly payment is due 8% interest since it was paid. There is a calculator here http://www.moneysavingexpert.com/reclaim/credit-card-charges if you paid off the loan early they may have refunded some of the ppi on the settlement figure. Or if you paid it in full you are due 8% interest from that date

maxdp

ejc81 wrote: »

Hi all,

I've made a claim against lloyds for PPI that they put on a loan I had in 2004. The loan was for £15,000 then the PPI was nearly £3500 on top of the loan! So basically I ended up with a loan of nearly £18,500:(

They've just made me an offer for £800:rotfl:

Now I know they are taking the P, but what I don't know is how much they actually would owe if my claim was successful in court.

How do I work out £3500 plus the apr @ 8.7% they charged on top of it from 2004.

PLUS the 8% statutory interest on top of that since 2004?

When I read the ppi reclaiming guide I thought it said the bank would know? In my case they obviously will know but they are not telling me:mad:

Even my tiny brain can work out that £800 is nowhere near £3500 plus years of interest;)

Can anyone please help work out roughly the figure that I am owed?

Thanks in advance:)

Hi THere

I would write back and tell them that that is not what you were hoping for. I do not understand only 800 that could just be a try it on. What reasons did they give. You should if they feel you were mis sold pay PPI plus Interest plus 8%. Give them a week to reply and tell them that if you are not happy with their decision then you will take it to the FOS. Was this their FINAL RESPONSE>

Saying this you need to give a bit more detail if you can so we are aware the full story.

Good Luck

ejc81

maxdp wrote: »

Hi THere

I do not understand only 800 that could just be a try it on. What reasons did they give. You should if they feel you were mis sold pay PPI plus Interest plus 8%. Give them a week to reply and tell them that if you are not happy with their decision then you will take it to the FOS. Was this their FINAL RESPONSE>

Good Luck

Yeah they say it is their final response but they have offered me this from the first template letter I sent so I think they already know they are screwed:rotfl:
I was expecting an initial response of "don't be silly you're getting nothing back" but they've been very helpful so I definately think they know they are 100% in the wrong

Basically I went to them for a loan of £15,000 over five years.

I already had a loan with them and I was basically renewing it and adding a bit more so I could pay off my other finance (the previous loan did not have ppi). I don't want to give out exact figures but the loan without ppi would have been £15,000.
The woman insisted that I needed ppi or they probably wouldn't lend (this is crap as the payments would have been less than I had already been making for years).
I had life/accident insurance THROUGH LLOYDS anyway and since I was only 22/23 unless I got run over by a bus it is unlikely I was about to keel over!
Anyway by the time I left the bank I had a loan for £18,500 ish over 7 years:eek:
Quite a way from £15,000 over 5!!!

So ppi was £3500 at what looks to be from the CCA around £50 a month!!

Here's the best bit, at the time I was unemployed, not only was I unemployed but I had 3 very young children the youngest of whom was 2 at the time and was/is severly disabled needing 24hr care. So realistically my job prospects were not looking good for the foreseeable future:(

They were perfectly aware of all of this when they did the application:mad:

I then got into financial difficulties due to a relationship breakdown, so enquired about the loan and was told I couldn't claim and also couldn't cancel ppi without taking out a completely new loan. Problem with that was I was overdrawn and struggling to pay anyone (as they were just chucking charges at me non stop) so lloyds said they were not in a position to offer me a new loan :mad:

Basically you can't cancel something you don't want or need :mad::mad: without setting up a whole new agreement and they wont give you a new agreement if your not financially sound :mad::mad::mad::mad:

Really nice of them eh?

Thanks for the input

ejc81

Andrew_Thomas wrote: »

you need to split the monthly payment between the loan and the policy then each monthly payment is due 8% interest since it was paid. There is a calculator here http://www.moneysavingexpert.com/reclaim/credit-card-charges if you paid off the loan early they may have refunded some of the ppi on the settlement figure. Or if you paid it in full you are due 8% interest from that date

Ok this now just looks more dodgy than ever:j

I've got the cca and terms infront of me but can't really believe my eyes!

According to this what lloyds were doing/have done is to pay upfront the ppi for me ie it says "premium advanced as part of the loan".

Looking at the terms and conditions it seems that they have paid their own ppi company which I think was black horse or one of the lloyds group the full premium of £3500. So effectively (say the ppi was with another company) the premium has been paid in full to whoever at the start of the loan.

Then they have added that premium to my loan. ie they've paid the premium for me then loaned me the premium fee on top of the loan I required.

In my head (which is sometimes very confused lol) this means they have been charging me interest @8.7%apr, for the sum that they paid upfront. So they basically are making money ie charging interest (on top of the huge amount they already charged for the premium) effectively I've paid interest on £18,500 not £3,500. So the premium isn't actually £3,500 it's £3,500 plus interest @8.7%apr since 2004.

Therefore am I correct in thinking the figure they owe me would be £3,500 ish plus the interest they have charged. Plus the statutory interest for the money they have deprived me of since 2004.

The problem is the payments and the interest added on my statement are for the full balance of £18,500. They have not broken the payments, or interest down to show ppi. I suppose this is because really i wasn't paying ppi I was paying them (and they were charging interest) for a loan of £18,500.

However on the cca it says £50 towards ppi per month and £230 towards loan. BUT you can't cancel ppi because they don't break the payments down on the statement?? Because they've already paid the ppi in full?? So what the hell are they playing at :mad::mad:

If the ppi was seperate ie £50 a month and I cancelled surely they could just decrease my payments by £50 per month? Obviously they can't do this as they have already paid the full premium themselves (albeit to themselves grr)

Does this make sense or have I digressed?