Vague Refund and Apology Letter

Debt_free_by_2020

Hi and Happy Monday to all!

Just wanted to ask a quick question regarding the ever confusing and vague Ll*yds.

I received a letter form them recently stating that a refund was due on my account. Sure enough there was also a cheque enclosed from them.

The reason I'm asking for some advice on here is that I was a little confused by the vague wording of their letter and don't actually know exactly what the refund is based on. Their letter states that "We have recently undertaken a review of our internal collections processes and have found that between 2012 and 2014, following an assessment of your financial circumstances, we did not always take the appropriate course of action when dealing with your account.

We are sorry this happened."

I mean, I can see it's because of a review of their processes etc but it came completely out of the blue. I guess I'm just being a little pessimistic and wondering exactly what they have done wrong as I've never known banks to just hand over refunds without someone having specifically asked for them or made a fuss. Or maybe that's just me and they always hand over random cheques to their customers haha

Having said that, I have sent them a PPI letter of late and am now wondering if this has anything to do with the sudden cheque and apology letter. Seems like a long shot but I'm no expert here haha.

Has anyone else received a similar letter from them?

sourcrates

Are you, or have you been in debt to them at all recently?

Occasionally creditors will do audits of the way they have handled customers who are in arrears with there accounts.

Sometimes they may not of treated everyone in line with there own policy, so they may not of handled your situation as well as they could of done.

Barclaycard had a similar redress scheme recently, that is what the payment and apology are for.

Debt_free_by_2020

Thanks for the reply Sourcrates!

Yes. I currently owe money to them for a credit card (the letter was regarding this debt) and an overdraft.

So I guess I they are just being nice and I shouldn't be overthinking it? It was a nice surprise because on top of this cheque, they had also paid off a chunk of the c/card debt I owe to them.

I think I'll send the cheque back and ask them to apply that to the current debt also as this would help me be free of them in a much shorter time than anticipated and it's not like I ever expected to have the money anyway

January2015

I had one of these letters last week (different bank). Nice, almost £500 off the debt balance

indesisiv

Debt_free_by_2020 wrote: »

Thanks for the reply Sourcrates!

Yes. I currently owe money to them for a credit card (the letter was regarding this debt) and an overdraft.

So I guess I they are just being nice and I shouldn't be overthinking it? It was a nice surprise because on top of this cheque, they had also paid off a chunk of the c/card debt I owe to them.

I think I'll send the cheque back and ask them to apply that to the current debt also as this would help me be free of them in a much shorter time than anticipated and it's not like I ever expected to have the money anyway

I wouldn't be sending the cheque back .. I would make sure that you cash that and then use that money to pay your debts.
They could easily misconstrue the sending the cheque as you don't want it.

sourcrates

indesisiv wrote: »

I wouldn't be sending the cheque back .. I would make sure that you cash that and then use that money to pay your debts.
They could easily misconstrue the sending the cheque as you don't want it.

I agree, cash the cheque, don`t confuse the issue.

fermi

Did you have mortgage arrears with them?

Debt_free_by_2020

No, I've never had a mortgage with them or anyone else.

The only reason I wanted to send the cheque back with a letter asking for them to use it as part of a payment towards my credit card debt is because I was a bit worried that if I cashed it I would just end up using it on other not so essential things and then it would be like I never got it in the first place (but if it goes onto the debt straight away then at least it is more productively spent).

Can you cash cheques into ISA accounts? I don't think I've ever tried but maybe putting it in there would keep me from pointlessly spending it as I need to go and get it out with one of the booklets instead of with a card from an ATM.

Thanks for the replies

HampshireH

Why put it in an isa. Why not cash it in then immediately pay it off the credit card? Then it will be like you mever had it anyway

Debt_free_by_2020

I would do but at the moment I don't have a current account in which to put it.

Basically, long story short, both of my current accounts have now defaulted (one very recently) and I just have agreed that any money I get goes onto my mum's account at the moment. So, because the cheque is in my name it has to go into an account with my name... the only one I currently have is my ISA.

I'm dreading having to go and set up a new current account somewhere because I really don't want to have that horrible chat with a bank employee where they tell me I'm not eligible for an account on account of being a s*** adult who hasn't been able to get, let alone keep, their life together

Any tips on banks which don't mind giving current accounts to people who are hopeless with money?

elsien

Have you looked at getting a basic bank account to pay the cheque into?
No overdraft facility so less hassle getting one if your credit has taken a bit of a knock, but you can still do direct debits and the other useful features of a current account.
Just choose a bank that's not related to your other accounts in any way.
https://www.moneyadviceservice.org.uk/en/articles/basic-bank-accounts