Lloyds TSB old loan claim accepted! Can you help?!

Princess_Laura

Hi, I'm brand new to this forum so please be gentle with me! Apologies in advance if I don't explain this correctly!


Basically, nearly a year ago, I made a claim on my Lloyds TSB loan insurance as I was made unemployed. They told me I wasn't covered for some reason or another and I forgot all about it. Until recently...

I had a letter and a call a few weeks ago to tell me they were looking into old claims to see if they were treated fairly. I had to give them some more information and they said they would get back to me.

I received a letter today telling me if was successful which is great, and that they would make an ex gratia payment of around £250 - which includes interest. Obviously I am happy with this, until at the end of the letter it says they will apply this to the loan itself, I wont be receiving a payment.

I understand that had the original claim be accepted at the time, applying the insurance claim amount to the loan balance would've been fine with me, but at present, I am still having problems with other debts etc because of the financial difficulty then. I am now dealing with a debt management company.

Therefore I think I should be free to choose how I want the money used. Do I have a leg to stand on??

I called them today but they just took a number and said someone would get back to me.

Any help would be greatly appreciated

jonesMUFCforever

Did you actually make repayments to the loan when you were made unemployed or where they bounced?

If all the payments were made I think you would have a case for them to pay you the money.
If not I think they have a right to do what they have suggested.

Princess_Laura

Hi, and thanks

I'm really not sure as it was around a year ago. I guess I'll have to ask them when they call back. Thanks again x

jonesMUFCforever

You can tell by looking at your statements to see if repayments have left your bank account.

Princess_Laura

My statement show that it was paid from my account with them but came back as a returned direct debit...and I was therefore charged £30.... Does this change anything?

jonesMUFCforever

Princess_Laura wrote: »

My statement show that it was paid from my account with them but came back as a returned direct debit...and I was therefore charged £30.... Does this change anything?

Yes; the payments bounced and therefore you did not make the repayments to your loan account.
IMO you should accept the refund to the loan account.