Refund of interest paid to a sold account

[Secretjay]

Lloyds have agreed irresponsible lending on my loans and are going to refund the interest I paid over a couple years.

The account has been sold on and Lloyds say they will pay this refund to the new debt holders. Can they do this?

Lloyds have previously refunded me interest payments on my credit card. The reason they gave was 'since this account has been sold to a third party we can pay you this money'

Any thoughts?

Thanks

[Debt Camel]

Re: Refund of interest paid to a sold account

It seems very variable what a creditor does in these circumstances. I have always guessed that it has something to do with the terms of sale of the debt, which are commercially confidential and you have no right to ask to see them.

[nemesis45]

Re: Refund of interest paid to a sold account

The interest paid by yourself is included in the value of the debt sold to the debt purchaser
so it is reasonable for it to be paid off the debt in their view.
BUT to my mind it should be paid direct to you to use as you see fit, it's no different from
your credit card interest, it's between Lloyds and the debt purchaser to sort out the different
value of the debt that was sold.

I would make a formal complaint at director level to Lloyds.

nem

[Secretjay]

Re: Refund of interest paid to a sold account

Thanks for the replies

I said to the complaint manager that the credit card had previously been refunded direct to me. He said he couldn't comment on a complaint he wasn't involved in.

So I emailed ceo at lloyds banking group asking why I was refunded one but not the other.

After 2 weeks I got a reply from the original complaint manager saying the email had been passed to him and that different departments can have different procedures.

[nemesis45]

Re: Refund of interest paid to a sold account

Thanks for the replies

I said to the complaint manager that the credit card had previously been refunded direct to me. He said he couldn't comment on a complaint he wasn't involved in.

So I emailed ceo at lloyds banking group asking why I was refunded one but not the other.

After 2 weeks I got a reply from the original complaint manager saying the email had been passed to him and that different departments can have different procedures.

Sounds like typical Lloyds non communication and casual incompetence!

nem