£1200.00 offer - advice please

yelah4u

To cut a long story short, I have rec'd a letter from Lloyds TSB re PPI that I am claiming back on my fathers behalf. I just wrote them a letter asking them to check if he has ever had PPI on any loans that he has had with them. They have agreed to refund £4400.00 on 1 loan. On the second loan the letter says the following:

"As a final response, we would like to offer you £1200.00 to bring your complaint to a conclusion. Due to the passage of time we no longer have any detailed records relating to your account. This means that even if we were able to assume the amount and term of the loan based, for example on your recollections there is no guarantee that our calculations would be accurate......
However if you have any details about your loan which you feel would increase the payment that you should receive, such as a copy of your laon statements showing the commencement date and the date the loan was closed please let me know and I will consider the matter further. If upon receipt of your documentation it is apparent that your refund should be greater than that offered we will recalculate using that information our offer and pay that amount. Please conatct us as soon as possible if you do not wish to accept our offer of £1200.00.".

Okay so after searching through the loft we found the loan paper work from 1998 the loan was for £7000.00 and the was £1426 of PPI on top. The loan was paid off early in 2000. So there will be a decent some of interest on it too.

So should we accept the £1200 offer, or send in the paperwork that we have. The reason that I am asking this is because it is from longer than 6 years ago. Will Lloyds still repay it from that long ago? Any advice would be appreciated.

amersall

Send a copy of the agreement in and ask them to look at this.

upon receipt of your documentation it is apparent that your refund should be greater than that offered we will recalculate using that information our offer and pay that amount. Please conatct us as soon as possible if you do not wish to accept our offer of £1200.00.".

Looks like they will look at it.

This loan only ran a couple of years,you will have had a rebate of ppi and interest when this was settled and will be calculated in,this will be taken off any redress they give you.

yelah4u

Thanks for the advice. From looking at the statement it does not seem that there was a rebate of the PPI when the loan was settled. Is there a way that I can post the statements on here for you to look at?

dunstonh

From looking at the statement it does not seem that there was a rebate of the PPI when the loan was settled. Is there a way that I can post the statements on here for you to look at?

Lloyds would refund the PPI on early settlement to the current account that was paying the monthly loan payment. Not to the loan itself. The refund was relatively pro-rata but not exactly.

So, be careful. You may well find that showing them the details may result in a lower figure. i.e. if PPI was £1426 but repaid early and resulted in £400 being refunded, then the offer or £1200 beats the £1026 you would get if details known.

yelah4u

Thanks for that, but wouldn't the interest accrued on top of that rebate (if any) push up the amount? Unfortunately we don't have the bank account statements from back then.

dunstonh

but wouldn't the interest accrued on top of that rebate (if any) push up the amount?

It would be amount of PPI paid plus interest minus rebate.

So, the interest would push it up but the rebate would drag it down. How much is unknown to us. It is just something to be wary of.