Offer from Lloyds - can someone please advise?

WelshWoofer

Hi,
After sending the claim form to Lloyds a few weeks ago I have received a letter today offering me a settlement.

Could someone please have a quick look at the details to let me know if its the right thing to accept and , if possible, approx how much I should receive? I am totally confused by the letter (not a maths genius!) and need to know whether this is a fair offer and I should accept it.

Loan amount £8000 (taken out August 2003), account settled 1 year early in 2009

Loan PPI £1743


They have decided to uphold the complaint and offer a settlement using two calculations:-

Calculation 1
Calculate the difference between the settlement balance I have paid on the loan and what the settlement would have been had the PPI not been applied to the loan.
Then calculate an 8% interest payment on this sum from the day the loan was settled to the day the calculation is completed.

Calculation 2
Calculate the amount I have paid up to the date of cancellation and refund this back to me.
the add simple interest at 8% per annum to each monthly paymenbt from the dtae I paid each amount to the date I settled the loan.
A further 8% simple interest will be calculated on this total amount from the date of early settlement of the loan t the present date.

Thank you in advance for any help anyone can provide!

robbedofmymoney

in order to do a calculation i will need to know the following information

term of loan,
interest rate
monthly repayments for loan
monthly repayments for ppi
was there a rebate of ppi on early settlement of the loan (there may not have been as the loan had been active a number of years)

i can then work out what you should expect to get back

well done on your success:beer:

WelshWoofer

robbedofmymoney wrote: »

in order to do a calculation i will need to know the following information

term of loan, - originally 7 years , settled approx 12 months early
interest rate annual % rate = 7.9%
monthly repayments for loan £123.38
monthly repayments for ppi £26.90
was there a rebate of ppi on early settlement of the loan (there may not have been as the loan had been active a number of years) I don't think so

i can then work out what you should expect to get back

well done on your success:beer:

Thank you for your help- I think that the above is correct (taken from the original agreement).

robbedofmymoney

in total you should be looking to get back approximately the following

72 payments of £26.90 = £1936.80

then the difference in early settlement would have been approx £330.

you will then get 8% simple interest on these amounts

8% simple on premiums paid = £613.32 (approx)
8% simple on settlement diff = £26.40

so in total you should be looking for

1936.80 + 330 + 613.32 + 26.40 = £2906.52


nice one:beer:

WelshWoofer

No way!!!
That's fab! I was expecting about £2000! (told you I was rubbish with maths!):j:j

Thank you so much for your help - I wish there was a "mega thanks" button!

As the loan is now closed but I have another one with them (taken out with no PPI and has an outstanding balance on it, up to date with payments) should I expect a cheque or will they pay this off what I owe them on the other loan?

So I'm assuming I should sign the offer and return it ASAP?

robbedofmymoney

rachelmk wrote: »

No way!!!
That's fab! I was expecting about £2000! (told you I was rubbish with maths!):j:j

Thank you so much for your help - I wish there was a "mega thanks" button!

As the loan is now closed but I have another one with them (taken out with no PPI and has an outstanding balance on it, up to date with payments) should I expect a cheque or will they pay this off what I owe them on the other loan?

So I'm assuming I should sign the offer and return it ASAP?

they should pay the refund into your bank account,
on the acceptance forms from Lloyds there is a section for you to enter the account details you want the money paid into.

they will only pay it off an existing debt if you have missed payments.

lloyds will drag out the repayment for a number of weeks,

usually approx 21 days to send you a full refund breakdown, and then upto another 21 days for the cash to hit your account.

WelshWoofer

Thank you soooo much!!
You have made my day!:D

When I do get the cash eventually I'll use approx £2500 to make a BIG overpayment to the existing loan and use the rest to pay off my only other debt (an overdraft of £400) and £100 to squander to celebrate!:beer:
If you're ever in need of science help let me know (I'm a PhD science teacher)!

robbedofmymoney

so if we can solve the theory of perpetual motion and use this as a continuous energy sourse we could solve all the world energy problems and get rich at the same time, or has it already been done.

WelshWoofer

Did it yesterday before I went back to school between Midsummer Murders and Come Dine With Me!:p

di3004

Well done Rach on your success......:T Congratulations :beer:, thats a nice surprise for you.;):)

amersall

robbedofmymoney wrote: »

in total you should be looking to get back approximately the following

72 payments of £26.90 = £1936.80

then the difference in early settlement would have been approx £330.

you will then get 8% simple interest on these amounts

8% simple on premiums paid = £613.32 (approx)
8% simple on settlement diff = £26.40

so in total you should be looking for

1936.80 + 330 + 613.32 + 26.40 = £2906.52


nice one:beer:

God forbid i tell you "your job" but the loan was for 7 years and was repaid at least a year earlier, so that makes about 60 months ppi paid? x