Lloyds - Settlement offer (!!!) but not sure what to do next

Selim

Hi all and thanks for reading.

I have been offered a settlement with Lloyds for the two loans I took out with them. One ran its course (18 months) and the other I settled three months early (26 months).

I have received two letters saying that they are upholding my complaint and how they will work out what they will refund me.

In case any of your are unfamiliar with their methods I will quote what has been said:

I have decided to uphold your complaint and offer to settle your complaint in the following manner which is in line with the standard redress remedy recommended by the FOS. The offer I propose to make involves 3 calculations

A) calculate a refund of the PPI monthly payments that you have paid to date
calculate simple interest at 8% per annum on each of the PPI monthly payments that have been made and
C) calculate simple interest at 8% per annum on the total amount of PPI paid, this will be calculated from the loan's closure date to the date of calculation.

Loan 1 - Amount £5,600 + (Optional!) PPI £667.61

£385.51 a month (including £41.07 PPI)

First payment Feb 03, 18th and final repayment August 04.


Am I correct in assuming the following

A) => (18x £41.07) = £739.26

8% simple interest = £3.29. For 6 months this was 7 years' worth. For the remaining 12 this was 6 years' worth. So, [7x(6x £3.29)] + [12x(6x £3.29)] = £375.06

C) 8% simple interest = 0.08x £739.26 = £59.14. This is payable for 6 years, so x6 = £354.84.

A+B+C = £1,469.16

Does this make sense? Is this how they will calculate it?

Their offer makes no mention of any compensatory payment for the stress caused by all of this, however, I have read on this forum that the FOS also have additional payments for the distress, a couple of hundred pounds usually.

This is their final offer. I am going to ask them to actually tell me what their calculations are/ the final figure is before signing anything because I think that is only fair that I know what I am signing.

Is it worth taking this to the FOS? (Typically) what would the FOS rule in such a case when the bank has already admitted liability? Are they punitive for what could be viewed as time wasting?

I will not post the second loan details even though the calculation is slightly different as I settled (3 months) early, but it is essentially similar.

Many thanks for your input, I really appreciate it

di3004

Hi there

First of all, well done to you.:beer:

I'm sure Robbedofmymoney will be here at some point, and will check these out for you.;)