Lloyds comparative redress (alternative redress)

Mart3433

Hi,



I had a Lloyds loan, for which I’ve already complained aboutPPI, and received my payment in JAN-2014 – approx £5,500. I have just noticedthey used comparative redress (alternative redress), whereby they have assumedthat I would have taken out a cheaper PPI policy, and they therefore withheldapprox £1,400 worth of payments to me.



Does anyone have any experience claiming this back ? Anytips ?





Many thanks
Martin

welshgasman

I believe you have six months to go back with any problems with the payment and calculations.

You are well over this limit now.

dunstonh

Comparative redress is used where there is no evidence of mis-selling. However, the PPI sold was single premium rather than regular premium. i.e. they have judged the sale correct but it was set up in a way not deemed most suitable. Hence you only receive the difference.

You have 6 months from the response to refer your case to the FOS if you disagree with the response. You appear to have accepted the response 18 months ago. So, on that basis you are out of time.

-taff

However, Lloyds may have calculated redress wrongly, using comparative redress instead of redress, so if you want to, complain to LLoyds again, ask them to use the normal redress method and see what happens.
Read this, see if it applies
http://www.moneysavingexpert.com/news/reclaim/2014/04/reclaimed-ppi-some-banks-have-underpaid-borrowers-100s

Insider101

Mart3433 wrote: »

Hi,



I had a Lloyds loan, for which I’ve already complained aboutPPI, and received my payment in JAN-2014 – approx £5,500. I have just noticedthey used comparative redress (alternative redress), whereby they have assumedthat I would have taken out a cheaper PPI policy, and they therefore withheldapprox £1,400 worth of payments to me.



Does anyone have any experience claiming this back ? Anytips ?





Many thanks
Martin

Simple answer, you can't.

When you say you have "just noticed", I assume that you mean you have just re-read your offer letter? I also assume that before receiving the money, you returned a signed acceptance form to confirm that you accepted the offer as full and final settlement? If this is the case then you cannot now go back asking for more. The acceptance form is a legally binding disclaimer.

Insider101

-taff wrote: »

However, Lloyds may have calculated redress wrongly, using comparative redress instead of redress, so if you want to, complain to LLoyds again, ask them to use the normal redress method and see what happens.
Read this, see if it applies
http://www.moneysavingexpert.com/news/reclaim/2014/04/reclaimed-ppi-some-banks-have-underpaid-borrowers-100s

You can't complain again. Once an offer has been accepted as full and final settlement, that is it over and done with. It doesn't matter what it would have been if it was a full redress offer. It is not a case of "calculating redress wrongly", in some circumstances comparative redress is absolutely fair enough and it is a hugely subjective call as to whether it is or is not an appropriate offer. However, if the OP wasn't happy with the offer, the time to question it would have been before returning the acceptance.

dunstonh

I suppose the only thing the op can do is ask Lloyds to see if they will voluntarily look at the case. If no, its game over. if yes, then they may get lucky.

-taff

Insider101 wrote: »

You can't complain again. Once an offer has been accepted as full and final settlement, that is it over and done with.

If they have used comparative instead of normal, and the OP can show that they didn't need PPI of the monthly kind, they most certainly can complain again.
Or if it's semantics, they can challenge the original decision and then go to the FOS if they're unhappy with it.

Insider101

-taff wrote: »

If they have used comparative instead of normal, and the OP can show that they didn't need PPI of the monthly kind, they most certainly can complain again.
Or if it's semantics, they can challenge the original decision and then go to the FOS if they're unhappy with it.

OK maybe I need to rephrase the original comment. There is nothing to stop the OP from writing in contesting the original decision (which is not the same as complaining again). However, assuming that the OP signed a full and final acceptance at the time of receiving the original offer, Lloyds are within their rights to simply refer back to that and state that the matter is closed. The OP certainly does not have access to the FOS, as per the original post the offer letter was sent in January 2014 which is way outside the six month time frame. FOS rights are valid for six months only from the final decision letter and do not get extended or renewed by subsequent exchanges of correspondence.

Obviously we are all aware that there were some issues with Lloyds' use of alternative redress and it's possible that they may proactively review the matter. However, if they conclude that the original offer was fair then there is no way the OP can force them to reconsider. Remember, just buying something you don't need is not grounds for complaint, the product needs to have been missold. I.e. you need to have either been wrongly advised to take it, or materially misled as to what it is and what it covers.

Mart3433

Hi All,

Just to let you know the outcome on this, Lloyds contacted me on 23-Dec-2015 and paid back the redress they'd originally withheld. Total of £2,163 after tax, just need to wait a couple more weeks for it to be in my account.

I'd been meaning to send them a letter ever since I started this thread but just never got round to it.

Lloyds said they'd reviewed my case and their original decision was found to be wrong. So now they've paid back every penny of the PPI I originally paid. The fact they contacted me about it is great because it's been on my mind for ages!!!

I'm extremely happy, as you can imagine!!

Thanks

Mart3433

Just to clarify ~

End of 2013 - Lloyds sent me a PPI question form. I filled out and returned.

Jan 2014 - Lloyds offered me £5,500, withholding a further £1,400 as an alternative PPI they thought I should have taken out.

Dec 2015 - Lloyds contacted me revising their decision about alternative redress and offered me £2,163 which covers the alternative PPI fees (£1,400) they applied to me plus interest.