lloyds ppi claim and outstanding loan

[rcs1]

Hello everyone

Just wanted to say thanks for the assistance received from this site, have received offer letter today from Lloyds TSB Old Loans from 2003 and 2004 offer of £11k.

However I had a new loan 2007 which I defaulted on due to financial difficulty and have not been in a position to pay. Debt was then sold off to external financial company, which I am in negotiations with and have a payment plan with

My query is if debt has been passed/sold on will Lloyds refund come to me or to the finance company to go towards debt?

Any ideas on when refund is likely to come through as I have seen various timescales from 14 days to 90!

Any help would be appreciated

[EXC]

Re: lloyds ppi claim and outstanding loan

AFAIK the right of set-off only applies to the same company to which you are in debt to.

I'd be prepared to wait at least a couple of months for Lloyds to refund.

[di30]

Re: lloyds ppi claim and outstanding loan

Hi there

Well done to you.

They should keep this settled/old account separate to the active account, so you should receive all the refund, well done!

I know because I have had many loans with them and they did not use the old loan refunds towards the active or the one that did default on over a year ago.

[nelliewops]

Re: lloyds ppi claim and outstanding loan

That's great news - well done! I second what Di & Exc say - having also had a loan that defaulted and had several refunds back from LTSB, none of the refunded monies have been taken towards the defaulted account so you should be in for a bumper payout in the New Year

[rcs1]

Re: lloyds ppi claim and outstanding loan

Thanks all for the reply...huge relief!!!