Lloyds

[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

[di30]

Re: Lloyds

Hi folks

Just reading through now x

[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).

[Never-In-Doubt]

Re: Lloyds

Perfect. Thanks di

[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.

[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.

[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

Mick

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

[Tifosi]

Re: Lloyds

Will indeed take a look once the details are up

So we need:

Number of PPI repayments made
Amount of each repayment
Dates the payments were made from and to


Going on your previous post of the offer -

Our proposed offer has been calculated as follows:-
Refund of Premiums £xxxx
Interest at 8% up until Sept 19th £xxx
Total £xxxx


It looks like they have included the interest they charged in the premium amounts, so it would only be the 8% compensatory (statutory) interest you would expect on top, but I'll take a look once you post the figures

[di30]

Re: Lloyds

Thank you Tifosi, your a star x

[Mickb1969]

Re: Lloyds

Just a quick update. I accepted the offer made my Lloyds on October 9th and they still haven't coughed up. Just wrote a follow up letter threatening to inform FOS that they are delaying payment to me. Sent it via email to Ian Hallett, Head of PPI and will be posting it off (recorded) tomorrow.

Hope you are all well.

Mick

[di30]

Re: Lloyds

Just a quick update. I accepted the offer made my Lloyds on October 9th and they still haven't coughed up. Just wrote a follow up letter threatening to inform FOS that they are delaying payment to me. Sent it via email to Ian Hallett, Head of PPI and will be posting it off (recorded) tomorrow.

Hope you are all well.

Mick

Hi Mick

Hope your well too.

They have a huge amount of backlogs, but do keep at them as well, hope Ian Hallet gets back to you by Weds, good luck.

[Mickb1969]

Re: Lloyds

Hi again guys,
well this is still ongoing. Lloyds said they would pay me back in August but after several attempts to get them to cough up, they still haven't. So I wrote a letter of complaint to them saying that I expected the interest to be re-calculated to the date they actually pay me and not the end of August. I thought this would encourage them to pay up. Well, today I got a phone call from customer services and blow me, they have actually re-calculated the interest to the tune of around and extra £450.
One thing that confuses me is that she said the interest will be paid directly to me by bank transfer, today or tomorrow and the premiums will be paid back to the loan provider (also Lloyds). They will recalculate the loan as it is ongoing and forward the premiums to me. That doesn't make sense though as it sounds as though they are simply paying the premiums I have already paid into the loan. Is that common practice or do I have the option of the cash?
After my bike accident I was left without transport and was hoping to get a car until the insurance pays out.
As for the accident, I am recovered as far as I can be without further surgery and a, back to duties again at work. The guy who caused it still denies it was his fault, but he has been charged, taken to court, banned from driving for a while and fined. So I reckon it was his fault after all. That's what cutting across the lanes on a motorway because you have left it too late to exit does!! HA!!

Hope you are all well and although a little late, Happy and more importantly, a prosperous new year to you all.

Mick

[pompeyfaith]

Re: Lloyds

Mickb,

Are you upto date with the loan repayments excuding the PPI i.e there are no arrears ?

As this is your money they have to put you back in the position you would have been in had you not had the PPI it has to come back to you all of it, however if you are in arrears they can use SET-OFF to recover the arrears from the claim but they can only take the arrears no more no less.

Regards

[di30]

Re: Lloyds

Hi Mick

As Pompey says it should be, however I have come across others who have been in the same position because the loan is still open, the bank have tried to refund the award towards the loan itself, but I agree with Pompey, if no arrears (missed payments) you are in your right for having the full refund plus interested paid to you.

Afterall, you have already been deprived of your money.