Lloyds/Bennets query

[di30]

I helped my former bro in law, we shall call him Bennet, with a business loan ppi via Lloyds TSB.

However, they have accepted liability and have offered to refund all of the ppi due with relevant interest.


Now this loan was taken out probably in the late 90's, and even though he was married (not with my sister then though lol), it was his very own business loan just in his name only.

He split up with his Mrs, moved back from Blackpool to Wales.

Now to what he can recall there may be a little debt owing on that account (we have since requested for a SAR) just awaiting its arrival, despite the reclaiming of the PPI.

He contacted lloyds some years ago to try to sort some small repayments out, because he became disabled and was no longer able to work (of course he did not know then he had ppi, and had pre med conditions anyway) the reasons why they agreed and upheld his complaint.

He had not heard anything at all, despite also then banking with them with update address details, but now suddenly since he made a successful reclaim they are now stating they will use the refund for the debt owed.
Ok fair enough, but its been over 6 years or more.

So where would be stand with this case?
I know nothing about Unenforceable issues, but just thought I would ask.

Thanks in advance.

[thechippy]

Re: Lloyds/Bennets query

I would have thought that the original debt would be statute barred, so in effect does not exist. Therefore, how can they put the funds toward it?

[kilasuit]

Re: Lloyds/Bennets query

the debt still exist it just cannot be collected though the courts at all.

though any PPI refunds should always be paid to the customer and not offset against any debt with lender. They can ask if it can be credited towards account although you have right to argue that attempts were made to arrange payment of debt but were ignored etc

[di30]

Re: Lloyds/Bennets query

Thank you for your input folks.

I think the reclaim has opened up a can of worms to be honest now.

And he emailed recoveries who said that with ppi the debt is over £11K, so quite a lot outstanding then.

He said he will send me the email, so that I can post it up on here, and that they will send him the copy of the agreement. He said they also said they have been trying to contact him on lots of occasions, because it was passed on to Wescot.

Will post this up when he sends me copy of his email.

Thank you.

[Never-In-Doubt]

Re: Lloyds/Bennets query

Di,

If this is over 6yrs from last payment DO NOT accept any reclaim as it will achieve nothing.

Let it go. Send the SB template. It's finished.

That's what I'd do. The reclaim is pointless and a wasted exercise sadly based on the fact it's already SB'd

[Never-In-Doubt]

Re: Lloyds/Bennets query

though any PPI refunds should always be paid to the customer and not offset against any debt with lender. They can ask if it can be credited towards account although you have right to argue that attempts were made to arrange payment of debt but were ignored etc

nooo that's not quite accurate matey. If there's a balance they can offset. The exception is if it's been assigned in which case they'd not be entitled to offset.

I would check for a full NoA - via SAR. However for the same respect, I'd send the SB letter and wash my hands as anything done now is really a waste of time.

[di30]

Re: Lloyds/Bennets query

Di,

If this is over 6yrs from last payment DO NOT accept any reclaim as it will achieve nothing.

Let it go. Send the SB template. It's finished.

That's what I'd do. The reclaim is pointless and a wasted exercise sadly based on the fact it's already SB'd

Thanks Niddy, it was apparently the ppi section that sent bennet the email addy to find out what is owed, as he was confused of the debt, and they said to let them know if he still wants them to proceed or not.
I shall let him know, thank you.

[di30]

Re: Lloyds/Bennets query

His email he received here.........


Good Afternoon Mr


, I write with reference to your query regarding your refund due from the payment protection insurance. I have to inform you the bank are entitled to keep these funds as there is an outstanding balance owed to Lloyds TSB, namely £11,430.35.

The banks external debt collection agents, Wescot Credit Services and Rockwell Credit Service, attempt on numerous occasions to contact you in order to set up a repayment plan. I have requested a copy of the business loan agreement which states if there is an outstanding balance owed to the bank, these funds will be uses to offset this balance.

Once I receive this document I will forward this to you.

Kind regards

Case Official | Wholesale Banking Recoveries | Risk DivisionLloyds Banking Group 3rd Floor, Bank House, Wine Street, Bristol, BS1 2AN

[Never-In-Doubt]

Re: Lloyds/Bennets query

Di

Just a quickie..... Why did they not pay out? Did he become disabled whilst in policy or was it a new condition?

Can you send me the terms when you see them as I feel you have a third option..... I'd need to see the original terms first but failing that I feel this was sold and also they should have paid out.

Can you hold off on any offer pending SAR receipt?

[Never-In-Doubt]

Re: Lloyds/Bennets query

Di

Business loan???

[di30]

Re: Lloyds/Bennets query

Di

Business loan???

Yes Niddy, its a business loan.

He is dyslexic and didnt know he was signing for the ppi, assumed it was all in, yet he said ppi was not at all discussed with him, because if they had he could have confirmed about his long list of pre med conds.
He had a back condition/depression/IBS a few other med problems when it was sold to him, but his discs in his back worsened, which is why he had to give up work, on medical grounds, by his gp.

He managed to run a business for a little while, because his condition worsened, he's not worked ever since, and just claims disability benefits.

Yes can also hold off on accepting it, because at first they denied receiving the acceptance at first, but they did say to let them know on what he wants them to do.

[Never-In-Doubt]

Re: Lloyds/Bennets query

Di

On reflection of the above if it was me I would send the SB template and be done.

He won't benefit so pointless fighting a losing battle..... That's my opinion and what I'd do.

[di30]

Re: Lloyds/Bennets query

Di

On reflection of the above if it was me I would send the SB template and be done.

He won't benefit so pointless fighting a losing battle..... That's my opinion and what I'd do.

Good idea, I agree, will do this then, cheers Niddy.

I will see what paperwork he does hold, and get checking as well, just to make sure that it is that over 6 years, but I'm most certain it is.

[Never-In-Doubt]

Re: Lloyds/Bennets query

Yea wait for SAR etc and do nothing in the meantime.

Let me know as and when you get paperwork please

[di30]

Re: Lloyds/Bennets query

Originally he did tell the ppi dept that he is in financial difficulties with priority debts to sort out, such as Water, gas, elec etc, they are aware he is disabled and lives in a disabled accomodation, and he did tell them he was hoping to pay his priority debts with the refund.