Offer for MPPI claim but figures don't add up! Help?!

999nmt

Hi. :wave::santa2:
I made a complaint in September regarding the mis selling of mortgage payment protection insurance with the dreaded Lloyds TSB.
My main reasons for complaint were:1) We were told to take out this MPPI because when we moved house, our mortgage increased quite a lot & C&G will be more likely to lend the extra amount because of the insurance.2) I was 8 months pregnant at the time, and the advisor knew I wouldn't get any maternity pay, as I had only started working for my employers (NHS) 6 months prior. Along with a couple of personal issues too.
We were paying £78 a month
In my complaint form I asked for full monetry refund from October 2005 to May 2011 plus interest. ( new MPPI set up £28 a month starting May 2011 through IFA)

Recieved a letter today offering £485.16 plus £261.86 = £747.02
How/where would they get this figure from?
Am i wrong in thinking it should be 78x12x5? (=all premiums paid)

It states in the letter "This amount of this offer is made up of a refund of all the PPI premiums paid, Plus interest of 8%. The payment will also take into account any other factors that are relevant to your circumstances. For example, if you have incurred other costs directly as a consequence of your PPI policy, then they have been included in our proposed payment to you. ...."
We have never claimed on this policy.
Would I need to take it to the FOS?
Or are they just palming me off in the hope I'll go quietly?:xmassmile.

amersall

Give them a ring and ask how they worked this out,ask them to send you a breakdown,if you still think it is wrong,pass this to FOS.

magpiecottage

999nmt wrote: »

new MPPI set up £28 a month starting May 2011 through IFA.

That rather suggests that you DO have a need for MPPI.

That in turn suggests Lloyds TSB have offered the payment without investigating thoroughly.

If you go to FOS, that constitutes a rejection of the offer and they are not bound by it - so they can investigate again. By the time it gets to the front of the FOS queue it is likely that the pressure to clear high volumes will have eased. The less capable staff will have left and the more capable ones remaining will have a chance to look at your case in more detail.

Who knows what they may find that would enable them to persuade FOS that the sale of the MPPI was justified.

999nmt

Thanks. Have been trying to contact Lloyds today, got through on 2 occasions only to have the phone put down the other end! Spoke to a girl eventually, but need to speak to husband, as his name is the lead name on the policy.
I have never doubted the policy itself, hence when I cancelled with Lloyds, I set up a suitable policy for us, but it was my decision and I was well aware of different insurers, regardless of the mortgage amount.
Will try and speak to them tomorrow.

999nmt

Update as follows - Contacted Lloyds on the 21/12/11 to decline offer, stating that it does not equate to the full amount of premiums paid, letter quoted '...accepting this offer would put you back in the same position had you not taken out this Payment Protection Insurance' ... No it doesn't! Sent the cheque back with letter stating why we were doing so and informing them this was from the advice from the FOS.
Rang 23/1/12 to check update and because we declined the offer, the complaint has been closed.
Filling in the forms from the FOS and sending copies of the original policy document and letters I'm expecting another long wait now. But I'm hopefull they can help me get our money back.