Lloyds

[di30]

Re: Lloyds

Mick

I have asked our lovely tifosi to have a look at the figures for you, who will be here in due course x

[di30]

Re: Lloyds

Oh sorry about your health issues as well and hope you feel better soon, your very welcome by the way x

[di30]

Re: Lloyds

Hi Mick

Yes please feel free to post these up tomorrow, i will ask someone to check this out for you, not a problem.

I would check with the FOS (if they dealt with this) sometimes they will offer further redress, this can be anything from what I am aware of £100, £200 or £300 as standard, but again this mainly happens if this have been moved on from the Adjudicator to the Ombudsman, for example, if the bank ignored the Adjudicators decision where you then had to wait longer because of the case being moved on to the ombudsman.

However, you could though email or ring the FOS to check.

[Mickb1969]

Re: Lloyds

Oh God!! My brain hurts!!
This sounds like my circumstances....

Loan and PPI policy still in place at time of FOS decision.
Lender agreed for the cancellation of the PPI policy and restructuring of loan. E.g.
Overall loan repayments £250 per month but would have been £200 without PPI, term of policy was 60 months and complaint settled after 20 monthly payments.
· Return excess monthly payments of £50 x 20 payments up to date of settlement (£1000)
· Add interest to each payment of £50 at 8%simple, from date of each payment until lender repaid.
· Arrange loan to be restructured, so remaining 40 monthly payments reduced to £200
· Pay borrower £300 for extra inconvenience caused.

The offer is refund of premiums £2412.00 and Interest at 8% £326.09 totaling £2738.09


I will dig out the paperwork tomorrow and add figures from the loan agreement if that's ok?

There was no offer of £300 compensation though!! lol

I had more surgery last week and am a bit sluggish on the painkillers so seem a bit underwhelmed. I am extremely grateful for the help you have all given me so far and for putting up with my problems.

[Never-In-Doubt]

Re: Lloyds

Perfect. Thanks di

[di30]

Re: Lloyds

Well, there's good news but I am confused now.
Had a letter from Lloyds saying...................As our final response we would like to offer you the amount of £xxxx to bring your complaint to a conclusion.
There's a bit of blah blah blah then they say.....
Our proposed offer has been calculated as follows:-
Refund of Premiums £xxxx
Interest at 8% up until Sept 19th £xxx
Total £xxxx

I need someone who has been through this part to help me though.
I was forced to pay the PPI up front, it was included in the loan so I have been paying interest at the loan rate (I can find it if needed), which is well above 8%.

Surely, they owe me the full amount of the PPI that I was forced to pay initially, any interest I have paid on it as part of the loan AND any payments made towards the PPI as part of my repayments?
Am I correct in assuming this?

They are happy to send me a cheque (which to be honest, after my accident, I really could do with) so It's up to me whether I pay it into the loan, thus negating the PPI or pay off bills now, and use money from my accident insurance (when I eventually get it) to pay off the loan.

Any advice would be appreciated. I am happy to put in the actual values, not sure it was the correct etiquette though.

Mick.

Hi Mick

First of all, well done!

Right 8% is standard with all loans ppi, so basically you should receive 8% on every ppi payment you made, then you get the 8% to date of them receiving the acceptance, I will post more details below that includes refunds on both loans and credit cards.
In my own experience with Lloyds they normally send the written detailed calculation just before its paid out, and you can still question them on this if you believe its wrong.

If the account is upheld, then they should confirm if they will be calculating the same way as the FOS, so they should therefore follow the guidelines the same.

CREDIT CARDS

1. Where card account and the PPI are still in force.

If the consumer agrees to cancellation of the PPI the financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year; and
c) send the customer a statement showing the resulting balance on the account (with details of how it was calculated).

2. Where the card account is still open but the PPI has been cancelled.

The financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year; and
c) send the customer a statement showing the resulting balance on the account (with details of how it was calculated.)

3. Where the card account has been cleared and closed and the PPI has been cancelled:

The financial business should:

a) reconstruct the account by removing any premiums in respect of the PPI and any interest or charges in respect of those premiums;
b) if that produces a credit balance for any period, credit interest on that balance for that period at 8% simple per year;
c) pay the customer the difference between the revised closing balance and the original closing balance;
d) pay the customer interest on that difference at 8% simple per year from the date of closure to the date of payment; and
e) send the customer details of how the revised balance, the difference and the interest were calculated.

FOS may also consider it appropriate for the financial business to pay the consumer additional compensation for any distress and inconvenience he or she has been caused, including where the financial business rejected a complaint which it knew (or should have known) would be upheld, If they consider such an award is appropriate this will be specified by the adjudicator.

LOANS

These are examples full publication can be found on Link following them


Loan and PPI policy still in place at time of FOS decision.
Lender agreed for the cancellation of the PPI policy and restructuring of loan. E.g.
Overall loan repayments £250 per month but would have been £200 without PPI, term of policy was 60 months and complaint settled after 20 monthly payments.
· Return excess monthly payments of £50 x 20 payments up to date of settlement (£1000)
· Add interest to each payment of £50 at 8%simple, from date of each payment until lender repaid.
· Arrange loan to be restructured, so remaining 40 monthly payments reduced to £200
· Pay borrower £300 for extra inconvenience caused.

Loan and PPI policy terminated early before FOS decision.
Overall loan was for £23,000 (monthly payments £430) – but it would have been £18,000 with monthly payments of £340 without PPI. Policy term was 60 months; loan and policy cancelled are 23 monthly payments.
Borrower was required to pay £15,500 to settle the loan (after the business had taken account of the rebate of premium he was due of £1,200; but if he had not had PPI added to loan, the smaller loan of £18,000 would have cost £13,000 to settle at the same point.
So borrower had paid lender £90 a month more than he would have done, had the financial business not mis-sold the PPI policy; and £2,500 more to settle the loan after 24 months.
· Return 24 monthly payments of £90 to date of settlement (£2,160)
· Calculate difference between settlement costs incurred when borrower ended loan early and those he would have incurred had he settled the loan without the additional PPI element. (£15,500 - £13,000 = £2,500) pay difference to borrower.
· Add interest to each payment of £90 at 8% simple, from date that excess was incurred.
· Pay borrower £400 for extra inconvenience.

Loan and PPI policy ran to term before FOS decision
Overall loan was £7,500 (monthly repayments of £250) – but it would have been £6,000 with monthly repayments of £200 without PPI. Term of Loan and policy 36 months. So borrower had paid £50 more per month than if PPI not been mis-sold.
· Return £50 x 36 months of the loan (£1,800)
· Add interest to each excess payment of £50 at 8% simple, from date that excess was incurred.
· Pay £200 for extra inconvenience.


SUCCESSIVE SINGLE-PREMIUM PAYMENT PROTECTION INSURANCE

The exact approach to calculating compensation will depend on the overall circumstances of the individual complaint. In particular the calculations of compensation will vary according to the present status of the most recent loan and PPI policy. The financial business will be expected to consider the four scenarios set out below to ensure that the calculations are appropriate.

1. the most recent loan and the most recent PPI policy are still in force;
2. the most recent loan is still in force but the most recent PPI has been cancelled or has expired;
3. all the loans have been settled early and all the PPI has been cancelled;
4. the most recent loan and the most recent PPI policy have run the full term.

plus also additional compensation for any distress/inconvenience including where the financial business reflected a complaint which if knew (or should have known) FOS would uphold.

Subject to the consumer agreeing to cancel any PPI policy that was mis-sold and is stillin force the financial business should:

(A). In respect of each loan:
- recalculate the loan and the payments to what they would have been if the consumer had taken the loan without PPI
- repay to the consumer the amounts by which the payments actually made exceeded the recalculated payments;
- pay the consumer interest on each of these amounts at 8% per year simple from the date each payment was made to the date the compensation is paid;
- recalculate the balance that would have been outstanding at the end of each loan had the recalculated loan not included PPI.

(B) Calculate how much of the balance that was carried forward to the subsequent loan related to the cost of the PPI policy taken out for the previous loan: and
- repay to the consumer all amounts paid under each subsequent loan in respect of the carried forward balance, including interest and charges;
- pay the consumer interest on each of these amounts at 8% per year simple from the date each payment was made to the date the compensation is paid.

(C) Where the most recent loan is still in force and it includes the cost of the most recent PPI policy and/or any balance carried forward from the cost of previous
PPI Policies, the financial business should restructure the loan or arrange for the loan to be restructured so that the balance is reduced to the level that it would
have been if it had not included any of the costs of the mis-sold PPI policies.

(D) Set out in writing for the consumer details of the calculations under (A) (B) and (C).

[di30]

Re: Lloyds

Hi folks

Just reading through now x

[Never-In-Doubt]

Re: Lloyds

What happens they'll reverse the whole event retrospectively as though the ppi was never there. So in your case if you're saying you were charged say 16.9% on the whole payment inclusive of ppi but they're only paying back + 8% then you'll be 8% up cos they'll refund EVERYTHING paid so let's assume you paid a total of £1000 over the years; they'd pay this PLUS 8% stat interest so you'd get 1080 back. That initial 1000 would include interest on the payment already made. Just not compounded.

However compound is totally different as you're paying interest on interest. Best bet is to work it out then compare. You may need to take a hit. That's unfortunate but the way it works. Or take em to court as Garlok says.

They deduct the refund from the debt usually, then if there is any credit they'll send a cheque. On occasion they mess up and send the cheque direct to you at which point I say go for the kill and use their own money to make f&f against the debt. But that depends on amounts lol

[Mickb1969]

Re: Lloyds

what about the payments I have made towards the PPI so far? Will that now be recalculated into the loan and taken off it? Otherwise I have been paying PPI repayments for 4 years that would simply disappear?
I am a little confused.

Mick

[garlok]

Re: Lloyds

Di30 is the expert on this stuff Mick. Hopefully she will be along. But in my humble opinion you are correct. The 8% interest commonly called statutory interest is payable on the total sum owing to you which would include those interest payments as part of the loan. I know on credit card charges reclaims there have been successes with 8% stat. interest plus compound interest at the credit card contractual interest levels. Usually they have to be threatened with court action to get it , even going to court in the end but they seemingly will always pay the 8% without too much bother.

Hope that makeds sense
regards
Garlok

[Never-In-Doubt]

Re: Lloyds

Mate the 8% is statutory rate - thats the rate you'll have to accept

[Mickb1969]

Re: Lloyds

Well, there's good news but I am confused now.
Had a letter from Lloyds saying...................As our final response we would like to offer you the amount of £xxxx to bring your complaint to a conclusion.
There's a bit of blah blah blah then they say.....
Our proposed offer has been calculated as follows:-
Refund of Premiums £xxxx
Interest at 8% up until Sept 19th £xxx
Total £xxxx

I need someone who has been through this part to help me though.
I was forced to pay the PPI up front, it was included in the loan so I have been paying interest at the loan rate (I can find it if needed), which is well above 8%.

Surely, they owe me the full amount of the PPI that I was forced to pay initially, any interest I have paid on it as part of the loan AND any payments made towards the PPI as part of my repayments?
Am I correct in assuming this?

They are happy to send me a cheque (which to be honest, after my accident, I really could do with) so It's up to me whether I pay it into the loan, thus negating the PPI or pay off bills now, and use money from my accident insurance (when I eventually get it) to pay off the loan.

Any advice would be appreciated. I am happy to put in the actual values, not sure it was the correct etiquette though.

Mick.

[di30]

Re: Lloyds

Had a reply from FOS today saying Lloyds are receiving a very high number of claims and now I have to wait for a "Final Response" before they can take my complaint any further. So that's 31st of August.
The wait continues.

Hiya Mick

The banks are also sending out letters to all reclaim complaints, in regards of the extended timescales given by the FSA.
But you may still hear before then with a bit of luck.

[Mickb1969]

Re: Lloyds

Had a reply from FOS today saying Lloyds are receiving a very high number of claims and now I have to wait for a "Final Response" before they can take my complaint any further. So that's 31st of August.
The wait continues.

[di30]

Re: Lloyds

Hi guys,now had my ppi repayed on a 16 year old LTSB loan,had no paperwork and put in a claim thanks to our little Di really as i knew i had been self employed with them good result,still can't get them to admit i had ppi on my credit card though.

Aww well done Cappo, well deserved honey, you done really well x