Need help with a confusing letter from LloydsTSB Insurance

tbourner

Anyone good at maths?

I sent the FOS complaint questionnaire in to Lloyds about the PPI they added to my loan a couple of years ago, and they've replied saying they're going to uphold the complaint and offer to settle! Woohoo! Is that normal? I thought they normally said no and made you go through the FOS procedure?

Anyway; basically it was a £9000 loan at 11.6%, with £2517.26 added on for PPI. Taken out on 8th November 2008. £195.80 per month for the loan + £54.76 for the PPI over 60 months.
On 16th May 2009 I phoned and cancelled, they said it needed a new loan agreement to pay off the current loan minus the PPI rebate etc. So I got a new loan for £8739.42 at 11.5%. £205.81 per month for 54 months which is what I'm still paying now.

The letter they've sent says their settlement policy is "in line with the standard redress remedy recommended by the Financial Ombudsman Service." They propose to use 2 calculations:

Calculation one:
I will calculate the difference between the settlement balance you have paid on the loan and what the settlement would have been had the PPI premium not been added to your loan.

I will then calculate an 8% interest payment on this sum from the day the loan was settled to the day the calculation is completed.

Calculation two:
I will then calculate the amount you have paid up to the date of the cancellation and refund this back to you. This is worked out by calculating how much you paid each month in respect of the insurance loan alone and then multiplying this figure by how many months the insurance was active for.

<snip>info about clearer indication of PPI monthly payments available<snip>

I will then add simple interest at 8% per annum to each monthly payment from the date you paid each amount, to the date you settled the loan.

A further 8% simple interest per annum will be calculated on this total amount from the date of early settlement of the loan to the present date.

<snip>8% calculated from date signed acceptance is received etc.<snip>

Please be advised that this redress remedy has been designed to ensure that you are put back to the same position you would have been in, had the single premium PPI not been included with your loan.

As you received a partial rebate in respect of you insurance of £1993.22 on 22/05/2009, this will be taken in to consideration when calculating the refund.

Then some scary stuff about this being their final offer and the complaint is now closed and will need to go to the FOS within 6 months etc.

So, can anyone decipher all that? They obviously didn't give me a figure because of the way that 8% is calculated? Is it going to be £20? £400?

robbedofmymoney

tbourner wrote: »

Anyone good at maths?

I sent the FOS complaint questionnaire in to Lloyds about the PPI they added to my loan a couple of years ago, and they've replied saying they're going to uphold the complaint and offer to settle! Woohoo! Is that normal? I thought they normally said no and made you go through the FOS procedure?

Anyway; basically it was a £9000 loan at 11.6%, with £2517.26 added on for PPI. Taken out on 8th November 2008. £195.80 per month for the loan + £54.76 for the PPI over 60 months.
On 16th May 2009 I phoned and cancelled, they said it needed a new loan agreement to pay off the current loan minus the PPI rebate etc. So I got a new loan for £8739.42 at 11.5%. £205.81 per month for 54 months which is what I'm still paying now.

The letter they've sent says their settlement policy is "in line with the standard redress remedy recommended by the Financial Ombudsman Service." They propose to use 2 calculations:




Then some scary stuff about this being their final offer and the complaint is now closed and will need to go to the FOS within 6 months etc.

So, can anyone decipher all that? They obviously didn't give me a figure because of the way that 8% is calculated? Is it going to be £20? £400?

hi

from the information you have provided you should get back all of the monthly payments made,

so if we said 12 payments at £54.76 = £658.32 (this includes interest that was applied to the ppi element)

you will then get a refund of the difference between the total ppi charged, minus the ppi rebate, minus the ppi paid by you (excluding the interest.

£2517 - £1993 - £503 (this is the ppi you paid minus the interest) = £21

then they will apply 8% simple interest to the ppi you paid and the difference in rebate.

£658 @ 8% simple from time paid to end of June 2010 = £63.30
£21 @ 8% simple from time loan settled to end of June 2010 = £1.12

so you should get approx £743

this would be in line with the FOS guidelines.

let us know how you get on.

di3004

tbourner wrote: »

Anyone good at maths?

I sent the FOS complaint questionnaire in to Lloyds about the PPI they added to my loan a couple of years ago, and they've replied saying they're going to uphold the complaint and offer to settle! Woohoo! Is that normal? I thought they normally said no and made you go through the FOS procedure?

Anyway; basically it was a £9000 loan at 11.6%, with £2517.26 added on for PPI. Taken out on 8th November 2008. £195.80 per month for the loan + £54.76 for the PPI over 60 months.
On 16th May 2009 I phoned and cancelled, they said it needed a new loan agreement to pay off the current loan minus the PPI rebate etc. So I got a new loan for £8739.42 at 11.5%. £205.81 per month for 54 months which is what I'm still paying now.

The letter they've sent says their settlement policy is "in line with the standard redress remedy recommended by the Financial Ombudsman Service." They propose to use 2 calculations:




Then some scary stuff about this being their final offer and the complaint is now closed and will need to go to the FOS within 6 months etc.

So, can anyone decipher all that? They obviously didn't give me a figure because of the way that 8% is calculated? Is it going to be £20? £400?

Hi there and Well done! :beer:

Apparently this is how LLoyds works.

However, I have to mention after at first being offered goodwill offers, on 3 of our accounts, I was not happy, raised a few issues and within days they upheld on all.

And like yourself was told exactly the same thing in calculations.
And that they calculate inline with the FOS and so on.

But........
Anyway, they shortchanged us on over £200, as this was worked out for me by Robbedofmymoney on this site and others from other sites, so I write back with copies of spreadsheets and told them I don't believe they calculated inline with the FOS, and so much down, at first they were adamant they were correct, but I did not back down, I wrote to them again and told them that an adviser had worked out the calculations and they were as stated on ours we sent to them previously, within 2 days received a letter to confirm they were putting it right to the amount it should have been.

So what I would do is get someone to work them out for you, and with me being hopeless at maths, this is why mine were worked out for me.
Hopefully Robbedofmymoney will be along to have a go for you, he may just require a few more details.

Have they already sent you the acceptance slip?

Normally the amount is enclosed on the acceptance slip, this is what we questioned before signing.

Also check on how the FOS calculates PPI refunds here:
https://forums.moneysavingexpert.com/discussion/1596473

Hope this helps.

Again well done! :beer:

di3004

Oops sorry Robbedofmymoney, you already posted......:eek::rotfl::rotfl::D;)

tbourner

robbedofmymoney wrote: »

hi

from the information you have provided you should get back all of the monthly payments made,

so if we said 12 payments at £54.76 = £658.32 (this includes interest that was applied to the ppi element)

you will then get a refund of the difference between the total ppi charged, minus the ppi rebate, minus the ppi paid by you (excluding the interest.

£2517 - £1993 - £503 (this is the ppi you paid minus the interest) = £21

then they will apply 8% simple interest to the ppi you paid and the difference in rebate.

£658 @ 8% simple from time paid to end of June 2010 = £63.30
£21 @ 8% simple from time loan settled to end of June 2010 = £1.12

so you should get approx £743

this would be in line with the FOS guidelines.

let us know how you get on.

Ooh Ok. We actually only paid 6 months of payments before cancelling it though, 08/11/2008 - 22/05/2009. So does that mean my £400 guess was quite close! Or from Di's post I guess they'll swindle me somewhere along the line?

di3004

tbourner wrote: »

Ooh Ok. We actually only paid 6 months of payments before cancelling it though, 08/11/2008 - 22/05/2009. So does that mean my £400 guess was quite close! Or from Di's post I guess they'll swindle me somewhere along the line?

Well I hope not, hopefully yours will be fine straight away, I think its cos they detest me.......:eek::D lol, don't worry you will be fine.;)

robbedofmymoney

di3004 wrote: »

Well I hope not, hopefully yours will be fine straight away, I think its cos they detest me.......:eek::D lol, don't worry you will be fine.;)

sorry, miss read the date,

you will get the following using the same calcs as above.

6 x monthly payments made = £328.26

difference in ppi premium and final settlement less ppi paid = £272.30

8% simple on premiums paid = £38
8% simple on remaining ppi = £25

so in total approx £328 + £272 + 38 + 25 = £663

sorry i did not get the dates correct first time, that'll teach me to rush.

di3004

There are 2 to work out isn't there?

robbedofmymoney

di3004 wrote: »

There are 2 to work out isn't there?

2 calculations on one ppi policy.

first calculation regarding ppi paid
second calculation regarding difference in settlement as if ppi not added.

or have i miss-read it again,

the OP will tell me if i've got it wrong again, it's been a long day :eek:

di3004

robbedofmymoney wrote: »

2 calculations on one ppi policy.

first calculation regarding ppi paid
second calculation regarding difference in settlement as if ppi not added.

or have i miss-read it again,

the OP will tell me if i've got it wrong again, it's been a long day :eek:

Don't listen to me when it comes to calculations.......:eek:.

Oops think I have confused matters even more now......eek:o

robbedofmymoney

di3004 wrote: »

Don't listen to me when it comes to calculations.......:eek:.

Oops think I have confused matters even more now......eek:o

i'm off to meditate