Help!! Lloyd's ppi

MammyV

Hi,

I put in ppi claim for my husbands business. We received a letter stating we could get £2959.

The business had a debt of 11k (due to someone paying by fraudulent credit card and my hubbie being a sole trader). I asked if they would consider a settlement figure of £2959 and was thrilled they accepted. I paid them out of my maternity savings knowing I would be sent a cheque for this amount by Lloyd's.

We completed the acceptance form and were awaiting the cheque. Today we received a cheque for 1800. When I've queried it they said they recalculated based on what we had actually paid and money that had previously been refunded.

My argument is they should never have given us an amount and when everything was signed just changed their mind. I was assured by a lady on the phone that we would receive this or I never would have suggested it as a settlement figure on the debt!

Have I got a leg to stand on if we signed to accept the offer? They just said that they wouldn't pay out money that we weren't due...but isn't this legally binding?

Argh sorry for the long post, hope it makes sense!

Thanks :-)

[Deleted User]

MammyV wrote: »

We completed the acceptance form and were awaiting the cheque. Today we received a cheque for 1800. When I've queried it they said they recalculated based on what we had actually paid and money that had previously been refunded.

If any errors are found prior to sending the redress then of course the Bank are allowed to correct them, it could even have been revised upward in your favour. There is nothing legally binding about the offer, they could even withdraw it completely prior to paying if such an error was identified

You'll never receive any more than you have actually paid and outstanding debts can be recovered using the right of set off;
http://www.moneysavingexpert.com/banking/setting-off

dunstonh

My argument is they should never have given us an amount and when everything was signed just changed their mind.

The clue is in what you said in your first line. "could".

I suspect what has happened is that the £2959 is a figure prior to rebate. Once they checked your payment history and found you had already had a rebate on part of the premium, they would adjust the figure accordingly. Many of the banks have a two tier system where the person that investigates and decides if it was upheld or not is not the person that checks the amounts involved.

Have I got a leg to stand on if we signed to accept the offer?

No. If the figure you have received is correct then you are getting what you are entitled to. You dont get any more due to an error or a correction due to new information.

but isn't this legally binding?

No. An indication of figure prior to calculating it fully is not binding. It is important that you never pay anything until the money is in your hands.

MammyV

Oh !!!!!!!! Not what I wanted to hear, but it's helped thank you.

If they weren't such numpties when I phoned to ensure the amount was correct then I wouldn't have offered as a settlement. They are appalling at customer care at that place

.on the bright side we've settled a huge debt for a fraction of the amount....must remember that instead of thinking I'm £1100 down!

Thank you