PPI Question - Lloyds

parky5

Hi, if you still owe Lloyds money but are under an agreement with them can them still take any PPI money back against what you owe them, is there still a certain amount of interest they have to pay?

Munro_Bagger

Hi parky5! If you are in arrears with your bank, any PPI gains will be used to reduce or settle those arears. My OH is in a debt management plan (DMP) and was successful with all four of his claims - the PPI gained for each was used to reduce the outstanding arrears on each.

I understand that if your complaint (using the questionnaire templates on this site) proves successful, the bank can either choose to pay 8% interest on the PPI element, or compound interest on the PPI based on the interest rate at the time. The 8% was used in three of my OH's complaints (NRAM, EGG, Nationwide); RBS-MINT insisted on using the interest rate at the time.
Loan PPI reclaim guidance http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
Credit card PPI reclaim guidance http://www.moneysavingexpert.com/reclaim/ppi-credit-card-insurance

The guidance here is invaluable. Folk are very friendly and will help you every step of the way. Without this site, my OH would not have reduced his debt by £4000 and he would not have taken control of his finances. Best of luck

parky5

Many thanks for your reply. Am I right in saying though that they have to give you the 8% interest payment by law even if they keep the rest?