BOS Preference Account - loan or CC ppi??

MoosMum

Hi,
First time post - thanks to all for info
Had letter upholding PPI on BOS preference a/c from Lloyds yesterday:) which surprised me as although I wrote to them first I've had letters from and spoken to BOS customer service about the claim. They told me last week that it hadn't yet been looked at!

It's a standard letter showing loan examples and offers me ppi refund (plus interest).
I'm v confused about this account and what I'm likely to get as -

Account set up like a bank account (with sort code and account number)
Credit limit given
Cheque book for account
Monthly minimum payment
PPI varied monthly dependant upon balance
Charges applied for late payment, letters etc

I've paid over 5k in PPI between 1997-2008, averaging 45 per month with an apr of around 20% Some months ppi as much as 70.
The account closed in 2007 (bal 8500) and I've been paying it off (without ppi charges) since then, balance is now about 1500

Is it a loan, or more like a cc? Their reference shows 'cc ' but then they refer to a loan number seperately.
I've read the posts which say sign the acceptance and wait for figures but having seen other posts about how they are trying to sting you on the interest calcs I'm a bit concerned
Any help would be much appreciated

DrSqueeze

I had one of these some years ago, and it was pretty much like having an overdraft on a bank account. They've upheld my complaint and sent me a letter which refers to it as both "account" and "loan", so I suspect they're just using standard generic letters. The fact there are so many paragraphs which start with "If this..." also means it's not a very personalised letter.

What we should expect to receive is a refund of all PPI premiums plus 8% simple interest.

You say you closed the account in 2007 but are still paying it off. Was yours converted to a loan ?

MoosMum

Thanks for this Dr Squeeze
When you say 'refund of interest', how is the interest calculated on the PPI?

DrSqueeze

There's a useful thread here which goes into detail:

https://forums.moneysavingexpert.com/discussion/1596473

MoosMum

I've had a look at the thread but I'm still unsure how the calculations will apply to this account -

I didn't pay the same PPI amount each month (calculated each month based on balance)

It wasn't front loaded

I paid it off a couple of times then started over again with the same credit limit

Can anyone advise please??