Confused about Successful PPI Reclaim

Roon101

Hi. I have had a letter back from Lloyds TSB saying that they would like to offer me a refund of all ppi payments inclusive of interest and with 8% simple interest. I am confused at how much this will be though.

My situation is:

Aug 07: Cash loan £8,300 Loan for PPI £2,071.07
Total: £10,371.07 APR 10.1%
PPI Payments = £43.66 over 5 years (60 repayments)

I continued this until Oct 08 (15 payments) when i took a consolidation loan which inlcuded paying of the existing loan. The consolidation loan was:

Nov 08: Cash loan £25,000 Loan for PPI £7,775.15
Total: £32,775.15 APR 11.9%
PPI Payments = £134.35 over 7 years (84 repayments)

I made 6 of these PPI payments, before i realised i was being ripped off and cancelled the PPI (thanks to Money Saving Expert!)

The loan is still going, i have never missed a payment, and have got myself fairly stable financially so that i am confortable with the payments.

What i am confused about is how much i am owed back. The consolidation loan paid off the orginal loan, and so i take it also paid off all of the PPI Policy. So am i owed back the PPI for the full original loan, or just for the 15 payments i made?

The PPI on the 2nd loan seems more straight forward as i made 6 payments before cancelling the policy, so i am owed the 6 payments i made.

I was obviously very happy to get the letter offering a refund. But as they still make it hard and do not give you the actual offer before you sign the acceptance form, i wanted to make sure i am getting what am owed.

Any help anyone could give is greatly appreciated.

Thanks

di3004

Hi there

I'm sure that someone will be along to explain this more clearer than myself, but if you taken out a loan to consolidate the previous loan from what I can recall they sort of give a rebate (you don't actually see this) but it reduces the balance owed, so you get back all you paid plus interest paid on each month, and also 8% interest to date.

So basically when you settle the previous loan its like you have paid it off with a new consolidation loan, so the ppi would have been included in the balance owed minus any rebate you will get back plus interest.

Well done by the way.:beer: