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Please help with response from Lloyds (ppi)
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I am claiming back the ppi on a loan my husband took out with Lloyds. He was told he wouldn't get the loan if he didn't take out the insurance.
We have now recieved an offer from Lloyds but there are some parts which I am not quite sure of and just wanted to check that it was all ok before we accept the offer. I will write down the main points from the letter.
Your policy was taken out on the 3rd of Feb 2007 for £4005.80. (Actually, it was taken out on the 3rd of November 2006 but it was a buy now pay later loan so we didn't start paying until March but i'm sure we would have been charged interest from the account opening wouldn't we?)
I am offering to cancel your policy and reduce your monthly instalment and refund your overpayments between Feb 2007 to present. (Again, as the loan was taken out in November shouldn't we get interest back from then)
And here is the acceptance part
I. Mr Mc, accept the offer made by Lloyds TSB insurance to cancel my insurance and reduce my monthly instalment and to refund my overpayments on ex-gratia basis, in full and final settlement of my complaint.
I understand that our personal loan service centre will advise me of my new monthly instalment and will refund my overpayments.
Firstly, what does ex-gratia basis mean? Also, it doesn't mention repaying the interest paid on it, will this automatically happen or are they saying they won't repay the interest. And finally, I am slightly worried that they are saying the loan centre will advise you of your new payments. The policy is £69 a month so surely my monthly payments will reduce by £69. What if they try and make me take out a new loan and it's at a higher interest rate?
Advice much appreciated.
Heather
We have now recieved an offer from Lloyds but there are some parts which I am not quite sure of and just wanted to check that it was all ok before we accept the offer. I will write down the main points from the letter.
Your policy was taken out on the 3rd of Feb 2007 for £4005.80. (Actually, it was taken out on the 3rd of November 2006 but it was a buy now pay later loan so we didn't start paying until March but i'm sure we would have been charged interest from the account opening wouldn't we?)
I am offering to cancel your policy and reduce your monthly instalment and refund your overpayments between Feb 2007 to present. (Again, as the loan was taken out in November shouldn't we get interest back from then)
And here is the acceptance part
I. Mr Mc, accept the offer made by Lloyds TSB insurance to cancel my insurance and reduce my monthly instalment and to refund my overpayments on ex-gratia basis, in full and final settlement of my complaint.
I understand that our personal loan service centre will advise me of my new monthly instalment and will refund my overpayments.
Firstly, what does ex-gratia basis mean? Also, it doesn't mention repaying the interest paid on it, will this automatically happen or are they saying they won't repay the interest. And finally, I am slightly worried that they are saying the loan centre will advise you of your new payments. The policy is £69 a month so surely my monthly payments will reduce by £69. What if they try and make me take out a new loan and it's at a higher interest rate?
Advice much appreciated.
Heather
0
Comments
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I would write back asking them to find specific details of the exact amount of money they are refunding and what the new monthly payments will be.
Signing their letter looks like signing a completely blank cheque to me.
No way would I agree to this without the full details in writing.
'ex-gratia' means they are not admitting they are wrong but will give it to you as a favour.0 -
They won't make you take out a new loan.
From what you have written they are not paying back any interest purely refunding the PPI premium.
Like previous poster I would want to know if interest was to be refunded before signing the terms.0
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