Lloyds TSB redress on defaulted loan

skintmumof2

Hi
Lloyds TSB have wrote to me stating my PPI complaint is upheld.
It states a cheque will be sent in 28 days.
There is a note saying that if my account is in arrears there is a dedictaed team i can contact to use the money to go towards my debt with them.

Anyone else had this and received a cheque?

There are numerous posts saying the money will go straight to the debt. My question is would they do this even though they have written to me to say they are sending a cheque?
From my previous posts you will see im counting on using the money for heating oil and bankruptcy.

Thank you for your time.

[Deleted User]

skintmumof2 wrote: »

My question is would they do this even though they have written to me to say they are sending a cheque?

Post up the exact wording of the letter.
The Bank are certainly entitled to offset your redress against defaulted debt and it's clear they know that you actually have arrears.
I guess the answer is to keep us posted!

skintmumof2

Here it is:



I am writing to you today in relation to your complaint about your Payment Protection Insurance policy. I am sorry this situation has occured and i appreciate you taking the time to bring this to our attention.

OUR OFFER

As our final response, we are offering you a payment of............
......... This represents a refund of all the PPI premiums paid (inclusive of interest) plus simple interest at 8% which is then adjusted by other factors relevant to your circumstances. For example if you have already made a successful claim against your ppi policy or if you have already received a partial refund of your ppi premiums, then these will be deducted from the overall payment. A full breakdown of the calculation as at the date of this letter is shown below.

If one of your accounts is in collections or recoveries and you would like to use our offer to help rectify this, please contact our dedicated team on 0845 835 4298 and our specially trained agents will be happy to help. Lines are open........If we do not hear from you but have reason to believe that this service may be of benefit to you we will arrange for one of our agents to call you

Calculation

The calculation is as follows:
Refund of premiums XXXXX
Interest at 8%, calculated up untill 11 october 2012 XXXX
Early settlement difference XXXX
TOTAL XXXX

What will happen now?

We will now make arrangements for this payment to be made to resolve this matter for you. This payment will be made within 28 days in the form of a cheque, sent to your home address.

What do you need to do?

If you are happy with the details and the amount of our offer then you not need to do anything as any payment that is due will be made within 28 days.
........................
If we do not hear from you we will close your complaint, consider it resolved and make any payment as outlined in this letter.
........................
Blah blah
yours sincerley

Prachi Pandit
Customer Services

Encl: FOS leaflet

As a reminder, if one of your accounts is in collections or recoveries and you would like to speak to one of our specially trained agents, please contact us on 0845 601 2683.






Alot of typing! sorry for any typos! So im guessing 28days and see what happens which is towards end of mid october, marked on calender!

[Deleted User]

skintmumof2 wrote: »

"If we do not hear from you but have reason to believe that this service may be of benefit to you we will arrange for one of our agents to call you"

So if you don't contact them about off-setting, they'll be in touch with you!

The quoted section is the key part of the letter for me; especially as they repeat the information as a PS at the end.

In your circumstance, I'd be immediately ringing the number and claiming to have far more pressing debts to pay with this money. Even if things don't go your way, at least you'll know what position you are in.

skintmumof2

Well apparently they tried to ring me earlier whilst I was out.
They sent a business reply envelope with their letter, I don't know why as they don't ask for anything to be sent to them?
But it could be for appealing the offer?
Anyway's I have decided to send this letter to them:


Dear Prachi Pandit,

Thank you very much for your letter dated 14th September 2012 regards my PPI policy.

I am happy to accept your offer of £1915.96. I look forward to receiving the cheque.

I understand I did not need to contact you to accept this offer, however your letter states that a ‘specially trained agent’ will call me to discuss using your offer to rectify my account in collections.
An agent called me but I was not there and my partner answered the call.

No where in your letter do you state that it is compulsory for this action to be taken and I appeal to your compassionate side as a human to send the cheque as offered.

I am still in great financial difficulty owing money not only to you but with a number of banks/businesses including Halifax, Barclays, Capital one, O2, Anglia Water and my local council for Housing Benefit and Council Tax Benefit.
Using this amount of money towards my Lloyds TSB debt is hardly going to make a difference to the total outstanding, and I will still be no better off financially and will continue to make token payments till I eventually die of old age!

I made the complaint as I blame Lloyds TSB in general for my financial problems( although I also play a part in my troubles) as I received no help when I first mentioned I was struggling and each time I cancelled my loan direct debit you reinstated it hence the spiralling bank charges.
I would like to use the money to petition for my own bankruptcy.
I have no way of settling any of my debts with yourselves and my other creditors and so your offer will come in great help to file for bankruptcy and try to get my life on track again. The Official Receiver can then share out the rest of the money fairly between all my creditors including you so all is fair.

In summary, thank you for your offer and I look forward to receiving the cheque as stated within 28 days.
Failure to adhere to this will result in this letter and my original complaint being forwarded to the Financial Ombudsman Service.

I trust you will act on your word in good faith.

Yours faithfully



Some of you may think this is not a good idea? But I feel I have said I what I wanted to say and I look forward to receiving their cheque.

I will keep you posted!

Totallyskint

I have had 3 PPI claims upheld by LLoyds, all three have been paid back to me in the form of a bank transfer. I have an account in collections which I am paying off via a dmp. The day before each of these payments was due to hit my bank I received a phone call from a very nice representative in collections who "asked" me if I was going to be paying any of the redress against the account.

I was going to pay some against it anyway so on the first 2 I paid something, the third one was a smaller amount and I had my daughters birthday coming up so I simply said that I had more pressing bills to cover on this occasion and that was that. There was no pressure on their part to use the money to offset against the debt even though they are more than entitled to do so.

I wouldn't even bother wasting the money on a stamp tbh just wait for the payment to arrive with you.

[Deleted User]

skintmumof2 wrote: »

Some of you may think this is not a good idea? But I feel I have said I what I wanted to say and I look forward to receiving their cheque.

I hope you haven't already sent it? It contains entirely too much information.
I propose the following edit:

Dear Bank Manager,
Thank you very much for your letter dated 14th September 2012 regards my PPI policy.

I am happy to accept your offer of £1915.96. I look forward to receiving the cheque.

Your letter states that a ‘specially trained agent’ will call me to discuss using your offer to rectify my account in collections.
An agent has already called but I was not there .

Nowhere in your letter do you state that it is compulsory for this action to be taken and I appeal to your compassion and ask that you send the cheque direct to me to do as I see fit by paying far more pressing debt.
I am still in great financial difficulty owing money not only to you but with a number of banks/businesses and my local council for Housing Benefit and Council Tax Benefit.
yours sincerely
Mrs S. Mumoftwo


Don't mention your planned bankruptcy, don't post any ultimatums and don't blame the Bank (even partly) for your financial difficulties.

[Deleted User]

Totallyskint wrote: »

I simply said that I had more pressing bills to cover on this occasion and that was that. There was no pressure on their part to use the money to offset against the debt even though they are more than entitled to do so.

They sound entirely reasonable and I think if they can see you are attempting to repay the existing debt by making some regular payments towards it then they allow you to keep the redress.
I suspect it would be entirely different if you had been showing no intention of paying, however.

skintmumof2

Oh sheite why didn't I think about that? I've gone and shot myself in the foot now haven't I? I won't blame them if they use it against my debt with them now, I'll just have to freeze again this winter and keep in plodding along with my token payments. I will keep these thread updated as a warning to others to not be as hasty as me when writing a letter!

[Deleted User]

skintmumof2 wrote: »

Oh sheite why didn't I think about that? I've gone and shot myself in the foot now haven't I? I won't blame them if they use it against my debt with them now,

I think they'll realise you were just venting your pent up feelings.
However, don't give up hope just yet-it does look like they don't just automatically off set.

I just hope that telling them you are going bankrupt won't be counter-productive.

SaulB_23

I had a very similar letter from the Halifax about using some of the ppi payment I was owed against any monies outstanding with them on other accounts but they just sent out a cheque in the post for the full amount! I have arrears on a mortgage and an overdraft on my current account so was expecting them to use it to get some of the money they are owed. Keep your fingers crossed!