Random Cheque recieved from Lloyds (PPP)

Frankola

Hi All,
Wonder if anyone can advise please, we have a ppi claim entered with Lloyds for a credit card (two weeks ago) and wierdly this morning a cheque for £493.00 dropped on our mat with a letter saying "
"RE:Mortgage account No:123456789000
We provide the ppi (payment protection plus) that you have on your mortgage. the reason we are writing is to let you know that you are due a refund, plus interest, relating to insurance premiums you have paid for your morgage protection cover.

this is because we've noticed that the amount of cover you have was not reduced after you paid off some of your mortgage by making a capital repayment

we have now made the appropriate adjustment to your cover and calculated the refund from the date of the capital repayment to the date of this letter, as follows:

Premium refund amount £310.50
Plus interest @ 8% £183.12
Total Refund £493.62

Included in this figure is an additional payment in respect of potential loss of interest. This is paid at an industry wide recognised rate of 8% gross per annum on the overpaid amount in each monthly premium payment.

Please find enclosed a cheque for the total refund amount. Please note that your policy is therefore cancelled with effect from 28/5/2005.

If you have any questions about this or require any further information
please call us on etc etc.

As this has come out of the blue, we are suspicous as to why it has been sent, are they covering themselves for any future claims! If we should bank the cheque are we then accepting this amount and would not be able to query??? Not sure what to do, any advice would be very much appreciated.

Kind Regards
Frank

misschicken

I don't know what the reason you have for the mis-sale of the PPI on you credit card but my first thought would be whether it also applies to your mortgage PPI. If that is the case then a full refund would be appropriate (if the reason for a mis-sale is accepted by Lloyds).

Either way ring them as it says in their letter before banking the cheque and get them to explain what they've done- let them do the talking. Also if it doesn't say in their letter that the cheque is a full and final settlement against any future complaints then it's not.

tifo

you don't say whether it's for your own mortgage and the account numbers match or is someone else's refund?

Frankola

hi thanks for your advice/comments,

this isnt to do with the credit card ppi. we do have a mortgage with lloyds, which shows correct account no.....we may just give them a ring on monday, as just seems odd as we apply for mis-sold ppi on lloyds credit card from few years ago, we receive this cheque to do with mortgage a/c, in which we hav'nt changed or applied for any refund!

Aiming_High

We did find when applying for our PPI back from 1 loan with Lloyds, they did check all other loans we've had with them as standard. We don't have a mortgage with them though, but it sounds like they check all accounts.

Seems as though the mortgage department is ALOT quicker at paying out than the others.

marshallka

That doesn't look like a misselling complaint was upheld against the mortgage but it looks like you do have some payment protection on your mortgage (which is assumed to be OK and not missold) and that you paid off some capital and the payment protection was not changed at the time so they are refunding you to match your new requirements. (lower repayments maybe??). They are probably just making sure you have no complaint with them in the future with regards to this mortgage insurance.

If you have a complaint with them regarding your missold credit card insurance then I would make sure that this is also being looked into if you do give them a ring.

marshallka

I hope I have caught you before you make your phone call to Lloyds.

Was your insurance for the mortgage a stand alone policy OR was it a single premium (lump sum)?