Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Kingtalk
    • By Kingtalk 17th Apr 18, 10:28 AM
    • 18Posts
    • 0Thanks
    Kingtalk
    Lloyd’s mis-calculation?
    • #1
    • 17th Apr 18, 10:28 AM
    Lloyd’s mis-calculation? 17th Apr 18 at 10:28 AM
    I have recently had a ppi claim upheld on a loan I had with Lloyd’s between February 2010 & March 2013.
    The loan was for Ł16k and my monthly repayments were Ł411.95.

    Lloyd’s have upheld the complaint but in their calculations have stated that I only made 4 repayments. So their redress offer is Ł441.34

    If I paid Ł411.95 every single month for nearly 3 years, how could this be the case??
Page 1
    • zx81
    • By zx81 17th Apr 18, 10:38 AM
    • 16,868 Posts
    • 17,891 Thanks
    zx81
    • #2
    • 17th Apr 18, 10:38 AM
    • #2
    • 17th Apr 18, 10:38 AM
    They don't mean you only made 4 repayments of the loan. They mean of the PPI - although the redress figure seems very high for small repayments only a few years ago.

    Did you cancel it?
    • Moneyineptitude
    • By Moneyineptitude 17th Apr 18, 10:39 AM
    • 20,163 Posts
    • 11,106 Thanks
    Moneyineptitude
    • #3
    • 17th Apr 18, 10:39 AM
    • #3
    • 17th Apr 18, 10:39 AM
    Lloyd’s have upheld the complaint but in their calculations have stated that I only made 4 repayments. So their redress offer is Ł441.34

    If I paid Ł411.95 every single month for nearly 3 years, how could this be the case??
    Originally posted by Kingtalk
    If the PPI payments were separate from the loan re-payments (as they should have been set up) cancelling the PPI payment would have no effect on the monthly loan repayment amount.

    If you have documentary evidence that contradicts the Bank's records and calculations then you should of course present this to them. However, it sounds simply as if you have made incorrect assumptions.

    By 2010, Banks had largely ceased "front-loading" PPI into single premium repayments. In fact, it wasn't much later that they ceased offering PPI on loan and credit cards altogether.

    I'm certain a quick call to the Bank will clarify...
    • Kingtalk
    • By Kingtalk 17th Apr 18, 10:42 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    • #4
    • 17th Apr 18, 10:42 AM
    • #4
    • 17th Apr 18, 10:42 AM
    I made 37 payments of Ł411.
    I never cancelled ppi - or was told it was cancelled. I didn’t even know I had it in the first place!
    Surely if ppi was removed from my loan, my monthly repayment figure would have changed?
    • zx81
    • By zx81 17th Apr 18, 10:44 AM
    • 16,868 Posts
    • 17,891 Thanks
    zx81
    • #5
    • 17th Apr 18, 10:44 AM
    • #5
    • 17th Apr 18, 10:44 AM
    Surely not necessarily. The term could have reduced.
    • Kingtalk
    • By Kingtalk 17th Apr 18, 10:47 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    • #6
    • 17th Apr 18, 10:47 AM
    • #6
    • 17th Apr 18, 10:47 AM
    Ok, yes I guess it could have been. But would I not have had some right to decide weather I keep my term the same or reduce my monthly payments? Baring in mind they had added something to my monthly payments in the first instance that I knew nothing about?!?
    Surely I should have been consulted on this in some way?
    • zx81
    • By zx81 17th Apr 18, 10:49 AM
    • 16,868 Posts
    • 17,891 Thanks
    zx81
    • #7
    • 17th Apr 18, 10:49 AM
    • #7
    • 17th Apr 18, 10:49 AM
    Again, surely not.

    Reducing the term is the most common approach to a reduction in balance. It has the benefit of reducing the interest paid.
    • Kingtalk
    • By Kingtalk 17th Apr 18, 10:53 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    • #8
    • 17th Apr 18, 10:53 AM
    • #8
    • 17th Apr 18, 10:53 AM
    Ok. Clearly my interest in being consulted on these things by my bank is unwarranted.
    • Moneyineptitude
    • By Moneyineptitude 17th Apr 18, 10:55 AM
    • 20,163 Posts
    • 11,106 Thanks
    Moneyineptitude
    • #9
    • 17th Apr 18, 10:55 AM
    • #9
    • 17th Apr 18, 10:55 AM
    I made 37 payments of Ł411.
    I never cancelled ppi - or was told it was cancelled. I didn!!!8217;t even know I had it in the first place!
    Originally posted by Kingtalk
    The only reason you wouldn't know that there was PPI would be if you failed to read the Loan Agreement you signed. Contrary to popular claim company myth, PPI was not just randomly added to loans and credit cards without the knowledge and permission of the customer.

    As I've already said, 2010 was late in the day for PPI mis-selling. By later that year Banks had ceased offering it on loans and credit cards altogether.

    Can you post the redress breakdown? Then we'll be able to see how much of your refund is interest.
    • BooJewels
    • By BooJewels 17th Apr 18, 10:56 AM
    • 273 Posts
    • 204 Thanks
    BooJewels
    What do your loan documents say?

    All the bank loans I had with some form of PPI had it detailed in the box about repayments - there was the monthly payment, date, number of payments, total to be repaid and what the PPI amount was that was included in the repayment amount.
    • Moneyineptitude
    • By Moneyineptitude 17th Apr 18, 10:59 AM
    • 20,163 Posts
    • 11,106 Thanks
    Moneyineptitude
    Clearly my interest in being consulted on these things by my bank is unwarranted.
    Originally posted by Kingtalk
    I'm certain you'll find that the Bank did write to you detailing any changes to your loan term and that you either failed to read the letter(s) or have simply forgotten. The latter seems most likely, as you say that you had no knowledge that you even had PPI.
    • Moneyineptitude
    • By Moneyineptitude 17th Apr 18, 11:02 AM
    • 20,163 Posts
    • 11,106 Thanks
    Moneyineptitude
    All the bank loans I had with some form of PPI had it detailed in the box about repayments .
    Originally posted by BooJewels
    The loan Agreement would certainly have detailed the PPI. It was never somehow missed off or "hidden in the interest" as some Claim Companies allege.

    I'm guessing the OP no longer has the Agreement, hence his confusion...
    • Kingtalk
    • By Kingtalk 17th Apr 18, 11:09 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    I have asked Lloyd’s for the statements and also a more detailed breakdown of the redress.
    This is what the basic calculation breakdown says...

    A cost of single premium ppi policy Ł0
    B the number of monthly repayments agreed - blank
    C the number of monthly repayments made - 4

    Di Rows D - ‘upheld’ decisions only. PPI premiums to be refunded - Ł290.48
    Dii debit interest on Row Di - Ł0
    Ei Rows E ‘unfair relationships created’ decisions only. Amount of commission and profit share you paid on the premium above 50% - Ł0

    G row G ‘upheld in part’ decisions only
    How much you would have paid for a regular premium policy. The monthly premium is calculated as Ł9 for every Ł100 of net monthly repayment. Ł0

    Gross compensatory interest Ł188.58
    Tax withheld Ł37.72

    Total due to you Ł441.34
    • Kingtalk
    • By Kingtalk 17th Apr 18, 11:11 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    That may be the case - but they have confirmed it was indeed midsold in Feb 2010. And Lloyd’s only stopped selling ppi to new customers in July 2010
    • BooJewels
    • By BooJewels 17th Apr 18, 11:13 AM
    • 273 Posts
    • 204 Thanks
    BooJewels
    I've just looked at the latest of my loans (the one they wrote to me about Plevin that we discussed on another thread) and that was for 22k over 10 years, but we paid off early. The monthly PPI was Ł15.90. So the amount quoted as redress doesn't sound ridiculous, if you pro rata the loan amount and duration and knock off 3 years interest, plus tax - it sounds in the right ball park. The 4 repayment bit seems to perhaps be the confusion. I guesstimate a PPI value of around 8 quid per month.

    ETA: I see the OP has now added the calculations whilst I wad typing.
    Last edited by BooJewels; 17-04-2018 at 11:15 AM. Reason: Additional content
    • Kingtalk
    • By Kingtalk 17th Apr 18, 11:20 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    What I don!!!8217;y Understand is that they are not saying this is upheld in part. They are saying it was upheld. If you divide 4 payments by Ł291.48 - this is a high monthly figure.

    Also what does unfair relationship mean?
    • Moneyineptitude
    • By Moneyineptitude 17th Apr 18, 11:22 AM
    • 20,163 Posts
    • 11,106 Thanks
    Moneyineptitude
    they have confirmed it was indeed midsold in Feb 2010. And Lloyd!!!8217;s only stopped selling ppi to new customers in July 2010
    Originally posted by Kingtalk
    Just FOUR months later.


    Also what does unfair relationship mean?
    Originally posted by Kingtalk
    That's a reference to Plevin which doesn't apply in your case since the commission was not over 50%.
    • Kingtalk
    • By Kingtalk 17th Apr 18, 11:26 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    No. My first payment was in February. July is 6 months later not 4
    • Moneyineptitude
    • By Moneyineptitude 17th Apr 18, 11:33 AM
    • 20,163 Posts
    • 11,106 Thanks
    Moneyineptitude
    My first payment was in February. July is 6 months later not 4
    Originally posted by Kingtalk
    Really? The difference between month 2 and month 7 is 6 months?

    I'll take my leave of this thread now, the best advice is for the OP to simply present his queries to the Bank who are in a far better position than anyone here to answer them..
    • Kingtalk
    • By Kingtalk 17th Apr 18, 11:40 AM
    • 18 Posts
    • 0 Thanks
    Kingtalk
    The ‘difference’ between the 2 & 7 is 4 - yes

    But if I was paying ppi from Feb 2010. This is
    1. Feb
    2. Mar
    3. Apr
    4. May
    5. jun
    6. July

    6 payments not 4
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

234Posts Today

2,168Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin