LLoyds TSB query

PPIquery1

Hi, first time poster and am hoping someone can give me some advice on two very specific queries regarding PPI from Lloyds TSB please.

I sent in an appliction for PPI for several loans I had with Lloyds TSB dating from around 1998-2015
Two weeks ago I received a letter upholding all the complaints except the most recent loan from 2015. I realise that loan would not have had PPI sold on it so that part was fine. I also understand that if there is any outstanding balance from the older loans, the PPI refund can be reset against this. I am pretty sure there isnt but as I dont have records going back that far I will have to rely on the banks records and appreciate I may end up with less than I have been offered.
However I have two specific questions regarding this:

1. Do banks need to notify a customer if the PPI refund they have been stated they will receive is going to be offset ? Lloyds have told me I will receive the refund within 28 days, but should i receive a letter from then if this it not going to happen due to offsets? Or is it a case I have to wait the 28 days, ring them and then be told, sorry the cheque isnt being sent?

2.Although I'm fairly confident my loans with Lloyds TSB were paid off in full, the loan i took out with TSB in 2014/15 is currently in arrears. I know Lloyds are doing the PPI checks for TSB, as well as themselves, but from 2014 TSB totally seperated from Lloyds and is not a totally seperate bank, my credit file confirms the debt is with TSB (not Lloyds or Lloyds TSB). So my question is could Lloyds still offset my Lloyds PPI against the TSB debt? Or as TSB is no longer part of Lloyds banking group would they not be able to do that?

Any advice on these two questions would be much appreciated, sorry for the long email but hope I've made sense..

Many thanks

[Deleted User]

PPIquery1 wrote: »

Do banks need to notify a customer if the PPI refund they have been stated they will receive is going to be offset ? Lloyds have told me I will receive the refund within 28 days, but should i receive a letter from then if this it not going to happen due to offsets? Or is it a case I have to wait the 28 days, ring them and then be told, sorry the cheque isnt being sent?

There have been several instances of PPI being offset against unpaid debt after an offer letter has
been sent out and accepted. The Banks are not duty bound to inform you of any offset in advance, so your PPI redress may well still be subject to offset.

PPIquery1 wrote: »

Although I'm fairly confident my loans with Lloyds TSB were paid off in full, the loan i took out with TSB in 2014/15 is currently in arrears. I know Lloyds are doing the PPI checks for TSB, as well as themselves, but from 2014 TSB totally seperated from Lloyds and is not a totally seperate bank, my credit file confirms the debt is with TSB (not Lloyds or Lloyds TSB). So my question is could Lloyds still offset my Lloyds PPI against the TSB debt?

My answer is that it depends because it's not as "cut and dried" as two separate financial institutions. So you'll have to wait and see I'm afraid...

PPIquery1

Thanks for the quick reply, your answer to my first question is pretty much what i expected is the process, though it would be nice to think banks would at least send some kind of notification if there is a change to the amount being paid. But as you mentioned, they dont legally have to so I shouldn't be surprised!

The second point is interesting as I assumed (perhaps wrongly) that one bank cant use PPI redress against a debt held by another bank, but I have no knowledge of how such things work which is why i came here! So again thanks for your speedy reply , so as you say, I wait another 2 weeks if no cheque and then find out!