Lloyds TSB PPI offer - consensus?

Bruce_GT3

Just got my offer letter from LTSB asking if I'd be prepared to accept any PPI plus 8%.

Is this the "going rate"?

Anyone hold out for more?

TIA,
Bruce

di3004

Hi Bruce

How did they actually word your letter?
Did they actually state they would put you back in the position as if no ppi, and calculate in the same guidelines as the FOS?

Bruce_GT3

di3004 wrote: »

Hi Bruce

How did they actually word your letter?
Did they actually state they would put you back in the position as if no ppi, and calculate in the same guidelines as the FOS?

The letter doesn't include any actual mention of them calculating compensation by FOS guidelines, or indeed, that they will reinstate as if no PPI were paid. It merely states that the offer is (and I quote), "a refund of all PPI premiums paid (inclusive of interest), plus simple interest of 8%".

That's as far as they go. They go on to say that the final amount will be exclusive of any money paid out already or as successful claims against the PPI.

They also include a few illustrations, but here's the funny thing; I have to agree to accept the offer as full and final settlement before they actually confirm the amount they're offering, along with the relevant breakdown and calculation?

I know it's a standard letter, but this does sound like a very odd way of doing things...

Ipswich1984

Bruce_GT3 wrote: »

The letter doesn't include any actual mention of them calculating compensation by FOS guidelines, or indeed, that they will reinstate as if no PPI were paid. It merely states that the offer is (and I quote), "a refund of all PPI premiums paid (inclusive of interest), plus simple interest of 8%".

That's as far as they go. They go on to say that the final amount will be exclusive of any money paid out already or as successful claims against the PPI.

They also include a few illustrations, but here's the funny thing; I have to agree to accept the offer as full and final settlement before they actually confirm the amount they're offering, along with the relevant breakdown and calculation?

I know it's a standard letter, but this does sound like a very odd way of doing things...

This is the same letter that I got, as it said PPI premiums and interest I took this to mean that I would get everything back that I shouldn't have paid including the interest.

Lloyds got my letter today and was told I should have payment in 28 days.

I won't hold my breath.

magpiecottage

Ipswich1984 wrote: »

This is the same letter that I got, as it said PPI premiums and interest I took this to mean that I would get everything back that I shouldn't have paid including the interest

That is correct - you get all the PPI premiums paid, plus interest you have been charged on those premiums. That will normally apply up to the point where the loan was paid off. Then you get 8% interest from that point until settlement.

Bruce_GT3

Point in question, but 8% seems to be the "industry standard" at the moment. If your interest rate was higher at the time the loan was in existence shouldn't you hold out or counter-offer for a higher figure?

Bruce_GT3

magpiecottage wrote: »

That is correct - you get all the PPI premiums paid, plus interest you have been charged on those premiums. That will normally apply up to the point where the loan was paid off. Then you get 8% interest from that point until settlement.

I've also seen a number of successes on this forum where there has been a one-off "inconvenience" payment made; is this a thing of the past?

I think in short, what I'm asking is should I accept the offer or not?

Niggly_2

Bruce_GT3 wrote: »

Point in question, but 8% seems to be the "industry standard" at the moment. If your interest rate was higher at the time the loan was in existence shouldn't you hold out or counter-offer for a higher figure?

Its okay the refund of the ppi will include the interest he paid. As far as distress payments. You would have to tell them why you think it should be paid. i.e Have you been turned down, gone to the FOS AND HAD IT UPHELD. Have they made lts of errors in dealing with the claim causing you unesassary amounts of correspondence and time on the phone etc. Unfortunately they will not pay if your delay has been normal compared to ther claims.

N:beer:

Derwent

Bruce_GT3 wrote: »

Point in question, but 8% seems to be the "industry standard" at the moment. If your interest rate was higher at the time the loan was in existence shouldn't you hold out or counter-offer for a higher figure?

You will receive the interest back that you paid at the prevailing loan or card rate as part of the settlement.

The further 8% per annum is the current statutory rate that would be awarded by the civil court if you sued them for the return of your money. The banks will not offer you anything higher than you would receive in court, I'm unsure why you think they would.