A fair offer?

Deggy3

Good morning all,

About four months ago, my wife submitted a PPI claim to Lloyds TSB and pretty much straight away it was rejected. We took the advice of this lovely site and wrote to the Ombudsman shortly after to challenge it. A few weeks later, they upheld the claim but said it could take about 12 weeks for Lloyds to do the offer calculations. Earlier this week Lloyds TSB replied with an offer of around £350.00 based on a Credit Card she had with them for 8 years (PPI was being paid throughout the life of the card).

The credit limit was £1,000 for the majority of the time (although Lloyds did bump this up to £4,000 at one point without her consent!) and to be honest she never really used the card massively. She tended to be wise and pay of any debts within the month they were incurred.

My question is, does £350.00 sound like a fair offer? We are not being greedy here but when you hear stories about people claiming back thousands it does make you wonder if the bank is trying to pull a fast one...again!

Regards,
Neil.

-taff

If her complaint was upheld, she'll only get what she paid. The credit limit is not relevant, it's how much the monthly outstanding balance was.

If she paid it off every month, she won't have paid much if any PPI.

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html

societys_child

As -taff said, you only pay ppi on the outstanding balance.

. . and to be honest she never really used the card massively. She tended to be wise and pay of any debts within the month they were incurred.

So paid very little - nothing if the balance was paid off each month.

NB. If any ppi is paid, it is itemised separately on the monthly statement.

dunstonh

About four months ago, my wife submitted a PPI claim to Lloyds TSB and pretty much straight away it was rejected. We took the advice of this lovely site and wrote to the Ombudsman shortly after to challenge it. A few weeks later, they upheld the claim but said it could take about 12 weeks for Lloyds to do the offer calculations. Earlier this week Lloyds TSB replied with an offer of around £350.00 based on a Credit Card she had with them for 8 years (PPI was being paid throughout the life of the card).

If you go to the FOS, the FOS give the company a chance to settle the complaint without incurring the FOS fee. The bank would suffer a £1250 fee on this. So, with the amount being just £350, it is logical for them to decide to pay out the £350 to avoid the £1250. It is a form of commercial blackmail but not uncommon in different business areas. Consumers pay for it in increased charges and prices.

The credit limit was £1,000 for the majority of the time (although Lloyds did bump this up to £4,000 at one point without her consent!) and to be honest she never really used the card massively. She tended to be wise and pay of any debts within the month they were incurred.

as mentioned, the credit limit is irrelevant. The amount borrowed on the card outside of the month is what matters. The fact she paid her balance most months would mean she would rarely have incurred PPI premiums. That would explain the small figure.

My question is, does £350.00 sound like a fair offer? We are not being greedy here but when you hear stories about people claiming back thousands it does make you wonder if the bank is trying to pull a fast one...again!

It is a bit unfair to accuse the bank of pulling a fast one when she is effectively benefiting from commercial blackmail. Unless she paid thousands then she is not going to get back thousands. Some people did pay thousands of pounds. From what you describe, she would only have paid tens or a couple of hundred. (part of that £350 would be interest and this would be broken down in her response. So, she can clearly see what the bank said she paid).