Lloyds PPI on defaulted loan

76gps

Lloyds have recently confirmed that I had 6 loans with PPI included in them dating back to 95 to 2003 - My complaint has been upheld and I await the final decision letter. I am however concerned as in 2005 and 2007 I took out further Lloyds Loans (without PPI) which have since defaulted and sold to a 3rd party - Will redress be paid for the old closed/fully paid Loans be paid to me as cash or paid to the 3rd party for the 2 loans in default?

[Deleted User]

Only the Bank can tell you this. Certainly, they are able to offset defaulted debt against any redress but only if the debt recovery firm hasn't actually bought the debt.

76gps

I now get letters from Robinson Way in respect of the most recent outstanding loans from 2005 & 2007 - Does that mean they have bought the debt?

[Deleted User]

Not necessarily. It means they are handling the debt.

dunstonh

76gps wrote: »

I now get letters from Robinson Way in respect of the most recent outstanding loans from 2005 & 2007 - Does that mean they have bought the debt?

Most banks use third-party collection companies for debt recovery. It doesn't mean they sold the debt. Also, many banks have a claw-back option which allows them to claw back ownership of the debt from the recovery company in case they come into money belonging to you in the future. So, even if they have sold the debt, if it has a clawback clause then they can still offset the redress against that.

76gps

I just want to be clear (I maybe confusing the viewers) - I am making claims against old Lloyds PPI loans that were paid in full. I have since taken out further Lloyds loans that have the outstanding defaulted balance that has no PPI claim. Does that change anyones view?

dunstonh

76gps wrote: »

I just want to be clear (I maybe confusing the viewers) - I am making claims against old Lloyds PPI loans that were paid in full. I have since taken out further Lloyds loans that have the outstanding defaulted balance that has no PPI claim. Does that change anyones view?

In that case, they cannot use the redress unless it was a chain of loans.

76gps

thank you for the updates - I will await the final verdict. I am trying to recall if these were rolled up, but I think there was a gap, so fingers crossed of a good result - God, I need one!

76gps

Checked my account last night and saw a deposit of £9997. Immediatley phoned Lloyds who confirmed that this is their payout across numerous loans and letter was in the post to confirm.

Thank you MSE for giving me the kick to make the complaint. I also have an old MBNA credit card that I have made a complaint on (they have confirmed PPI was included in 1999) also made affordability claims against numerous pay day loan firms when I got in a spot of bother in 2012-15.

Lucylocks

Fantastic news and well done! Can you tell me the timescale Lloyds took to resolve. I've recently entered complaint and received acknowledgement but nothing further. I know there is 8 week timescale applied but wondered if I could expect to hear in the interim (appreciate it will be different for each complaint)

[Deleted User]

The Banks take eight weeks to consider complaints.

After the initial acknowledgement, the next communication will be their full and final decision letter.

They will only write to you otherwise if there is information lacking in your complaint.