Lloyds TSB PPI

yorkie19

I'm hoping someone can give me a little help here.

I filed a PPI claim with Lloyds TSB back in May and they wrote to me earlier in the month to tell me that there were prepared to refund me.

They then wrote to me yesterday to tell me that they were prepared to offer me around £1.7k refund for the PPI plus interest at a simple rate (at 8%). The letter said that they only have to pay interest on any point when the account is in credit as a result of the refund and have offered me £18 interest.

Is this right? My understanding was that the whole amount of the PPI payment was subject to the 8% interest charge.

Thanks
yorkie19

di3004

Hi there

I would post about this on the above thread called "How the FOS Calculates PPI refunds" and hopefully someone will be along to give advice on this and work out what you should be receiving, good luck and well done!:beer:

magpiecottage

yorkie19 wrote: »

The letter said that they only have to pay interest on any point when the account is in credit as a result of the refund and have offered me £18 interest.

Is this right? My understanding was that the whole amount of the PPI payment was subject to the 8% interest charge.

No - they have "unwound" the account and refunded interest charged at the prevailing rate. Periods where this has resulted in a credit will have had interest added to it at 8% (then used against future debit periods) until the present time.

I suppose you could go back to them and say "You keep the interest you charged me and just give me 8% on the premiums paid but that will almost certainly work to your disadvantage.