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

edited 30 November -1 at 1:00AM in Loans
5 replies 687 views
Princess_LauraPrincess_Laura Forumite
3 Posts
edited 30 November -1 at 1:00AM in Loans
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 :)


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