Query about Lloyds PPI offer

FlySi

Hi all - hoping somebody might be able to help out here.

My parents submitted PPI claims to Lloyds for 3 loans - 2 were taken out in February 1997 and 1 was in March 1999. All three loans were paid off in July 2000 when my father retired and they moved house, etc. The loans were paid. Settled. Finished. No rollover into other loans, no pay off the mortgage and the loans together. They were paid off!

Anyway, so far one of the 1997 loans and the 1999 loan has been upheld and and they received payment for the 1999 loan last week. We're a little concerned over the figures. They are as follows:

A - Original cost of the single premium PPI £535.31
B - Number of monthly payments (contractual) 60
C - Actual number of payments made 15

D - Total value of monthly premiums paid £101.80
E - Interest applied to premiums paid due to it being added to the loan £83.80
F - Total cost of policy (D+E) £185.60

G - N/A

H - Excess Balance and Interest. This is an additional payment to cover the extra amounts you paid when you refinanced your loan/PPI. The outstanding balance on the loan you refinanced was higher because you had PPI so you had to take out a larger loan and paid more interest when making your repayments on the next loan. £159.95
I - Other indirect losses - N/A
J - Insurance rebates, previous refunds of PPI and previous successful claims £0.00
K - Total adjustments (H+I+J) £159.95

L - Net refund due £345.55

M - 8% per annum simple interest on L £365.58
N - Gross refund £711.13

Now then... my parents do not know the exact details of the loan. A SAR request showed a loan of £6000 but what the terms, repayment details, etc were is anybody's guess. We'll just take their word for it. What they do know for certain, however, is that they did NOT refinance the loan. They paid it off. They used money from retirement and selling the house, etc. Can anybody suggest whether they have seen something similar to this on their offers?

There is another issue too. Presumably, as my parents paid the loan early, they would have had a rebate on the PPI loan. However, this isn't featured on the calculation (J). Any ideas on this? How should we proceed next? Lloyds paid the money to their account directly a few days ago (they hadn't even received the calculations yet). Should my folks query a) the refinancing issue; and b) the rebate?

Thanks in advance

[Deleted User]

Just accept the offers, they are fully in line with FSA guidelines. You won't get anymore.

-taff

FlySi wrote: »

What they do know for certain, however, is that they did NOT refinance the loan. They paid it off.

That IS refinancing the loan.
Because they paid it off early, they would have paid less back in total, hence a rebate.

grandprix

Moneyineptitude wrote: »

Just accept the offers, they are fully in line with FSA guidelines. You won't get anymore.

May I ask to which specific FSA guidelines you refer ? Do you work for Lloyds or the FSA ? "Apparently" the former (at senior operational level) read these boards and email internally on what is being discussed. You MUST ask for the detailed calculations and make sure you understand them and that they are correct. Ask a friendly maths student or trainee accountant to check them. You may be pleasantly surprised, you may be upset, either way I bet you'll find the "occasional" mistake !! :eek:

[Deleted User]

grandprix wrote: »

May I ask to which specific FSA guidelines you refer ?

The ones which state the redress should be a refund of all PPI paid (including attendant interest) plus a payment of 8% simple interest as "compensation".
I work for no financial institution.

grandprix

Moneyineptitude wrote: »

The ones which state the redress should be a refund of all PPI paid (including attendant interest) plus a payment of 8% simple interest as "compensation".
I work for no financial institution.

It's PS 10/12. And what about credit cards where the account wouldn't have incurred various charges had it not been for the PPI loaded onto it, and what about the interest calculation itself, you think they get all these calculations correct - "just accept the offer . . . you wont get anymore" is a silly thing to say. These banks have performed one of the biggest cons in financial history and you are suggesting people should trust them to get the compo calculations correct. Ask them to provide all the statements for the account since it started and make sure the compo is correct.

[Deleted User]

I think perhaps you should address your rants to the OP rather than me, I already know his redress offer is correct.

grandprix

Moneyineptitude wrote: »

I think perhaps you should address your rants to the OP rather than me, I already know his redress offer is correct.

My issue is with your advice (title of this post) which is wrong and foolish. I have seen a PPI offer letter from one bank with headline figures that don't even add up to the headline total. As for your "already knowing" that his redress offer is correct, maybe you can tell us what interest rates and numbers of days have been used to come up with the £83.80 interest figure ? Or have you just accepted that this is correct ?

-taff

All the figures are written down in the original post. It was a loan paid off early hence the low redress.
If you can see the calculations are wrong, please do explain, otherwise, berating someone else for their advice when you have offered nothing more in the way of information that refutes the oiriginal offer, other than 'check the calculations', you're just having an argument or posting for the sake of it.

grandprix

-taff wrote: »

All the figures are written down in the original post. It was a loan paid off early hence the low redress.
If you can see the calculations are wrong, please do explain, otherwise, berating someone else for their advice when you have offered nothing more in the way of information that refutes the oiriginal offer, other than 'check the calculations', you're just having an argument or posting for the sake of it.

The issue wasn't whether it was low, it was whether it was correct, the figures to determine this are not in the original post. The answer to your third sentence is implicit in what has been said. My argument is that the advice, and yes I do berate (although not at too much length), is foolish. I stand by my advice, do not trust the bank's calculation, ask for the detail and check the figures, I think that is pretty good advice ?

[Deleted User]

grandprix wrote: »

I stand by my advice, do not trust the bank's calculation, ask for the detail and check the figures, I think that is pretty good advice ?

By all means give conflicting advice if you want, but in doing so please don't attempt to belittle the opinions of others.