Advive pls regarding lloyds ppi claim

lindy199

Hi im hoping someone can help me, i have an ongoing claim with lloyds regarding mis sold ppi, recieved a letter this morning asking me if i wish to pursue the original complaint as my husband is out of work and we are claiming on it, so what do we do for the best?? if the claim is upheld we under no circumstances can afford the almost £300 pound a month loan repayment, we are only covered for a years unemployment and its nearly 6 months now,so if mu hubby hasnt found work within the next 6 months the claim would end anyway then i guess we would have to come to some arrangment with lloyds regarding paying off the balance, hope this all makes sense to someone. many thanks any advice would be appreciated.

di3004

Hi Lindy

What was your reasons for the mis selling?

If you already have cover in place anyway as such....

It's up to you but also depending on what your reasons are for being mis sold, they may state that they will pay out if you make a claim for unemployment, but if you both had a pre med condition and tried to make a claim on them for those reasons, they will not pay out, so you have to look at it at both angles I suppose.;)

src007

lindy199 wrote: »

Hi im hoping someone can help me, i have an ongoing claim with lloyds regarding mis sold ppi, recieved a letter this morning asking me if i wish to pursue the original complaint as my husband is out of work and we are claiming on it, so what do we do for the best?? if the claim is upheld we under no circumstances can afford the almost £300 pound a month loan repayment, we are only covered for a years unemployment and its nearly 6 months now,so if mu hubby hasnt found work within the next 6 months the claim would end anyway then i guess we would have to come to some arrangment with lloyds regarding paying off the balance, hope this all makes sense to someone. many thanks any advice would be appreciated.

It really depends on the figure in your case.

How long has the loan been running?

What you need to do is work out how much you have paid towards PPI so far. If you have the credit agreement it should quote the monthly cost of the PPI.

Times the monthly cost of the insurance by the number of months you've been paying. For a mis-selling complaint you would be looking to get back all the PPI payments made with 8% interest on top.

However,

Also work out how much you've claimed whilst using the insurance. This is important because they would deduct the amount 'claimed' from the refund if it's found to be mis-sold.

I hope this make sense. If not post on here:

1) The monthly PPI cost and the monthly loan payment;
2) How long the loan has been running (and the the total length of the loan);
3) The number of loan payments the insurance has covered whilst it's been used.

I suspect it would be better to continue using the insurance and halting the complaint. There is no guarantee that Lloyds will uphold the complaint but if you keep claiming at least you have a six month safely net. You may even be able to re-open the mis-selling complaint later.

lindy199

Thank you for your replies, im not very good with the figures malarky, but here goes,we paying £68 pound per month ins,loan was £14k over 5 yrs been going 2 and a half years, still owe over 7k, we have figured about £2500 back but that will proberly just come off the balance, we were told we HAD to take out ppi to get the loan so in my opinion it was mis sold, its a strange situation but looking at the replies think it may be best to cancel the complaint, oh well worth a try, thanks.

lindy199

oh and the loan repayment is £294 a month and they have been paying that for 6 months now.

src007

So when you started using the insurance you'd made about 24 PPI payments of £68. This comes to £1632.

For the mis-selling complaint you would be looking to getting that back with 8% interest. However they would also deduct the claim from your refund.

So far when using the insurance - the PPI would have 'paid out' £294 per month for 6 months = £1764.

So if you continue with the mis-selling complaint it looks like you would get little back and the insurance would then be cancelled, leaving you unable to use the insurance going forward.

If you manage to use the insurance for another 6 months you would get another £1764 of loan payments covered.

There isn't anything stopping you re-opening the mis-selling complaint once you've stopped using the insurance (if Lloyds haven't issued their final decision).

Some would say its unfair on the lender to use the insurance and then later argue it was mis-sold.

However if Lloyds have lied to you and ripped you off, it may be justified!

lindy199

Thank you SRC guess hubby was just unlucky to lose his job when he did, will get in touch with lloyds and cancel our complaint thanks again,

ALIBOBSY

src007 wrote: »

So when you started using the insurance you'd made about 24 PPI payments of £68. This comes to £1632.

For the mis-selling complaint you would be looking to getting that back with 8% interest. However they would also deduct the claim from your refund.

So far when using the insurance - the PPI would have 'paid out' £294 per month for 6 months = £1764.

So if you continue with the mis-selling complaint it looks like you would get little back and the insurance would then be cancelled, leaving you unable to use the insurance going forward.

If you manage to use the insurance for another 6 months you would get another £1764 of loan payments covered.

There isn't anything stopping you re-opening the mis-selling complaint once you've stopped using the insurance (if Lloyds haven't issued their final decision).

Some would say its unfair on the lender to use the insurance and then later argue it was mis-sold.

However if Lloyds have lied to you and ripped you off, it may be justified!

My understanding is from the fos guidance that you should get the premiums and interest paid plus the 8% as well and this can add up-seen a number of excel calculators for this.

However even if the loan is reduced and restructured it sounds like the reclaim is too low to clear it altogether-I assume the outstanding is still several thousands so you would end up with a loan to pay still?

ali x

Actually thinking about this when I realised that if a loan has the ppi added up front the monthly payments should include the interest anyway I think so ignore me lol

roonaldo

Use the insurance as intended. If found to be mis-sold, the amount you have successfully claimed on the policy would be taken off the redress owed to you.