lloyds TSB refund

minouche67

Got a refund letter from Lloyds on 1st August for £3100 which clearly states that a cheque would be sent to me. I accepted the offer on 5th August and been chasing for the cheque ever since. I have sent them letters and called the number on the letter many times for people telling it would take 6/9 weeks as there was a back log. Anyways spoke to someone today who told me after 10 weeks that the refund would be offset against the loan which is now with APEX. Surely they can't do that as the letter cleary states that the cheque would be sent to me. it is like a written agreement, isn't it? Furthermore once the debt been sold to Apex it has nothing ot do with lloyds. Can they do that. Please help. Many thanks

di3004

Hi there

Well done on your success!:beer:

I understand that if they did confirm cheque then this is how they should be refunding you, so this actual account your reclaiming on, is this the one with APEX?

You could send Lloyds an email to double check on this first, good luck.
[EMAIL="customer.care.insurance@lloydstsb.co.uk"]customer.care.insurance@lloydstsb.co.uk[/EMAIL]

minouche67

Many thanks for your reply. The loan was sold to Apex ages ago but surely that should not have anything to do with the refund . Have they had decided to offset against the loan then they should have indicated in their offer letter of 1st August, however it cleary states that a cehque will be issued to me. Can they go back on their words???? Please any advice would be greatly appreciated as i think this is what they are trying to do now. Many thanks

Pompey254

here are some other emails that may be handy, of which I got from them today

ppi.customer.relations@llydstsb.co.uk

customer.care.imsurance@lloydstsb.co.uk

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! - this is the chief executive!

Pompey254

Ooo just seen it has been blanked out if you would like it pm me with your email address with spaces and ill forward it over x

ALIBOBSY

The banks are attempting to use the rules of offset for the PPi refunds. But there are strict criteria for offsets. The first of which is that they are all owned by the same company they cannot legally pay this over to a third party they sold the debt on and it is YOUR refund.
They should refund the money to you and then you get to decide which/if any debts you use it to pay off.

See the ombudsman guidence here http://www.financial-ombudsman.org.uk/publications/Ombudsman-news/40/40_setoff.htm.

However I believe there is a good arguement that this is a refund so not an account allegeable for offset anyway. But in you case if it was sold to the DCA they haven't a leg to stand on.

I would write to them and point out the FOS guidence and that you only agreed to the settlement on the grounds it is paid direct to you.
There is also the issue that the DCA will have paid a small amount for the debt so sending the refund to them would be undue enrichment.

Finally you could also point out you have other debts (if you have) and therefore no one creditor should get preferential treatment over another and the money should be sent for you to work out a split between any outstandin debt.

Be firm and state if they pay the DCA the money you will consider the complaint to be unsettled and refer it back to the FOS.

Have even seen a case over on CAG where someone took this to court against barclays and won in court so the legal arguement is on your side.

Ali x