PPI on Lloyds Classic Credit Card 2002-2005

mickhucknallshair

Hi. I have an offer for PPI redress on missold PPI for the above product.

I do not think that the offer I have been given is accurate and am struggling to get the information I need from Lloyds or the ombudsman.

So if anyone here can help I would be very grateful.

How was the PPI was calculated on this card - my recollection is that is was £1 for every £100 of credit balance on the card. So if I had £1000 owing on the card, the PPI premium for that month would be £10. is this correct?

8% interest - what period is the 8% calculated on, and how is this applied in practice on a credit card?

Lloyds are saying they do not send out their detailed calculations to customers as it "is company policy". This sounds unreasonable to me, what are the legalities of this?

also, I took out a loan in march 2003, c5k of which was used to pay off the credit card balance on this card, inc the PPI premiums. I have recieved redress on the loan already (i was missold ppi on this too), however, neither offer factored in that part of the loan balance was used to pay off misold PPI premiums on the credit card. can i go back to them for additional redress on the loan in this situation? has anybody experienced anything similiar on a previous occasion?

many thanks for your help and advice in advance.

dunstonh

8% interest - what period is the 8% calculated on, and how is this applied in practice on a credit card?

Lloyds are saying they do not send out their detailed calculations to customers as it "is company policy". This sounds unreasonable to me, what are the legalities of this?

Indirectly they do give a breakdown. There is the refund of premiums (the capital amount) and interest added. They disclose the interest added as a separate figure for tax purposes. So, the difference has to be the net premiums paid.

I suspect they are mixing up what you are asking for as being a full breakdown (i.e. dates and amounts of each individual payment). They dont have to supply that. Just the total.

however, neither offer factored in that part of the loan balance was used to pay off misold PPI premiums on the credit card.

The fact both are being refunded or have been refunded already means it has been considered.

mickhucknallshair

dunstonh wrote: »

Indirectly they do give a breakdown. There is the refund of premiums (the capital amount) and interest added. They disclose the interest added as a separate figure for tax purposes. So, the difference has to be the net premiums paid.

I suspect they are mixing up what you are asking for as being a full breakdown (i.e. dates and amounts of each individual payment). They dont have to supply that. Just the total.



The fact both are being refunded or have been refunded already means it has been considered.

thanks - yes this has been illustrated in the letter and it is specific charges on specific dates i want ie what PPI i have paid on what balance every month. my point is that I do not think this calculation is correct. they have advised me to request copy statements from card services which I am doing. however, they clearly have the info in front of them (one of the customer services managers read something out to me) but refuse to send it in writing. Can i put in an FOI request for it?

are you sure re the final point? no mention is made in any of the offer letters. in the offer letter re the loan, specific reference was made regarding the fact that other loans had been taken out to refinance the ppi which themselves had PPI. they would also not have known what i was using the money from the loan for. what i am really trying to establish is whether, if they have not factored this in, whether, having accepted an offer for redress for the loans, whether I can ask them to consider this new factor?

-taff

You can send a SAR and £10 to see what information there is, they don't have to supply it.
CC PPI is charged monthly, so paying it off in a lump sum means you only paid that months PPI so it doesn't factor into the loan at all.

You only get interest on CC PPI if the account would have been in credit at any time with the PPI payments taken off.

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

mickhucknallshair

-taff wrote: »

You can send a SAR and £10 to see what information there is, they don't have to supply it.
CC PPI is charged monthly, so paying it off in a lump sum means you only paid that months PPI so it doesn't factor into the loan at all.

You only get interest on CC PPI if the account would have been in credit at any time with the PPI payments taken off.

thanks. i understand it is paid monthly. but it is paid based on the entire balance right? so if balance £1000, £10 ppi incurred, on which interest is charged in the next month. this is also £10 less paid off the capital. so this is effectively a £20 swing + interest. is my logic right here?

and surely the PPI builds up over time? ie if I have paid £10 in ppi in january, if I pay off the total balance in march, i have still incurred then £10 ppi. assuming the same ppi incurred in feb and march, my end of march balance would include £30 of ppi premiums + interest on this £30?

or am i miles off here?

thanks

-taff

Read the link.