How PPI claim is paid back?

scamander

Hi all,

Got my letter yesterday detailing my breakdown and the amount (4.5k).

I'm just in a query over how the money will be paid. In the letter is says 'by cheque' which is fine. However, the para above this states

"Our Personal Loan Service Centre will send you a statement which will show you the payments that we have made to your loan account and will confirm the outstanding balance on your loan. Please allow 21 days for your loan account to fully reflect these payments"

I had four loans, which were closed due to refinance (leaving me with a fifth that I started in July of this year). There is a table which details each loan and the amount I'll receive from it (as a breakdown). My recent refinanced loan has £41 next to it.

Does this mean I'll get all the money barring the £41 which will be taken off my current loan?

My fear is that they'll use the 4.5k to pay off half my current loan.

Apologies if I haven't explained this well - can anyone advise?

J_i_m

I imagine that your fear may be realised. However in your position that would be my preference, because your debt is nearer to being settled.

scamander

eeek- perhaps the only saving grace is that the majority of the money (all bar £41 of it) was from loans which are no longer and therefore won't be used on my existing loan.

I'm going to call (readies himself for more Dido music whilst on hold).

kerrirobberts

The letter I had from Lloyds said:

Please be aware that if your loan/mortgage/credit card is in arrears when we make the PPI refund, we will use part or all of the PPI refund to repay towards these arrears. If the PPI refund is more than the arrears on your account we will then refund the remainder of the PPI refund to you. If you do not wish us to do this, please contact us on telephone number

I called Lloyds up and asked them to send me the refund to my HSBC bank account instead of paying off any of my outstanding loan with it. The way I see it, it's my money that they effectively stole from me. I'm still waiting to see what happens to my refund, but so far they've said I will get it in full.

scamander

cheers Kerri,

I've looked for that paragrpah and it's not in my letter. Reading the bit I typed in my first post (relating to my loan) I do get the feeling they are going to bung the 4.5k into paying off my loan, which is not what I want.

Cue phone call....cue waiting but hello Dido.

scamander

Just spoke to LLoyds. Apparently this paragraph is in there because they initially pay the money into the loan but then take it out and send you a cheque. Very odd but c'est la vie.

In addtion they have no timescales on this due to the backlog so I'm not expecting it this side of November.

milkyshake68

scamander wrote: »

Just spoke to LLoyds. Apparently this paragraph is in there because they initially pay the money into the loan but then take it out and send you a cheque. Very odd but c'est la vie.

In addtion they have no timescales on this due to the backlog so I'm not expecting it this side of November.

Hi Scamander,
My payout is for 2 refinanced loans and 1 loan still running. My total payout is £8867 but I owe £4200 on my current loan which I want to pay off anyway. I was hoping to get one lump sum and then pay off the loan myself, Im not sure now whether they will split up the payments and get it in dribs and drabs. Cant really work it out!!