Comparative difference refund - Lloyds TSB

ggitts85

Afternoon all

I have a question regarding the offer received from Lloyds TSB.

Back in 2004 I took out a £10,000 loan which eventually I defaulted on due to being out of work for health issues. Not once during this time was I advised I could claim on PPI that was on the account. I was not aware of it being added to the account and even if I had been aware, I would not have been able to claim due to my health as it stemmed from a pre existing condition.

Anyway, I put in my claim to Lloyds 7 weeks ago and today they have advised me that their offer is £849.77. Obviously, I was expecting more than this!

i have asked why the amount is so low and they have advised they arent refunding the PPI premiums, instead they are refunding the difference between the PPI on my loan and a cheaper option I could have opted for.

This is the first time I have heard of this - They have advised I can challenge it and see if they will change their decision.

Does anyone have any advice as to what would be the best thing to do?

Part of me is thinking I should just take it as its better than nothing, the other half of me is thinking challenge. I just dont want it to backfire and they say they arent giving me back anything!

Many thanks in advance

dunstonh

i have asked why the amount is so low and they have advised they arent refunding the PPI premiums, instead they are refunding the difference between the PPI on my loan and a cheaper option I could have opted for.

the only time they do this is where the complaint is rejected but they accept it should have been monthly premium instead of single premium. They then refund the difference plus interest.

This is the first time I have heard of this - They have advised I can challenge it and see if they will change their decision.

It is quite common and allowed by the regulator.

Does anyone have any advice as to what would be the best thing to do?

Your complaint has been rejected. So, if you dont like that then refer it to the FOS and supply copies of your evidence to support your complaint reasons.

Part of me is thinking I should just take it as its better than nothing, the other half of me is thinking challenge. I just dont want it to backfire and they say they arent giving me back anything!

As they have accepted it should have been set up as monthly premium they will not back down on that.