Lloyds have offered to settle my PPI complaint

[adjustmum]

Thanks to Legal Beagles and the template letter that I used from the site. I complained about being missold PPI on a loan I took out in 2003.
I have today had an offer from Lloyds to settle that complaint.
They state they are settling in line with FOS standards of redress and propose to
a) calculate a refund of the PPI monthly payments I have paid to date
b) calculate simple interest at 8% per annum on each of the PPI monthly payments.
This is I believe a really good result, is this in line with what the FOS would reccommend?
Not being used to such a straightforward redress on complaints I am not sure if I am missing something????

[WendyB]

Re: Lloyds have offered to settle my PPI complaint

Well done sounds like a result
You need to decide if this is satisfactory to you. Is this still a current loan or is it paid off now? If it's still current, presumably your monthly payments would then decrease? Would you not be paying any more PPI? Did the added PPI have any bearing on the total amount you were paying for the loan etc? And if the loan is still current, will they be refunding the PPI to you or taking it against the balance outstanding?

If you are happy with the proposal then you should accept it.

Wendy x

[adjustmum]

Re: Lloyds have offered to settle my PPI complaint

Thank you Wendy.
Lloyds say if I accept they will instruct the loan service to pay the refund into my bank account and as there is approx 10 months left on the loan they will reduce the monthly repayments to what they would have been, had I not taken out PPI. They believe this remedy puts me back to the position I would have been in had I not taken out a single premium PPI. They believe this is the same redress the FOS would make in my favour.
I am currently pursuing another reclaim for PPI that I used a claim firm to assist me with. This was before I found Legal Beagles.... 18 months later I am still waiting for a result on that despite the FOS upholding my complaint.
In this case I downloaded the template letter from this site and sent it to Llyods on 10th August.
8 weeks for a positive result! And I get to keep all the money claimed back!
I really can't thank Legal Beagles enough!!!!!!

[WendyB]

Re: Lloyds have offered to settle my PPI complaint

Well that sounds about right then. Reduced monthly payments and a nice sum of money in your bank account in time for Christmas, bills etc.
Good result x

[enaid]

Re: Lloyds have offered to settle my PPI complaint

[quote=adjustmum;131478]Thank you Wendy.
Lloyds say if I accept they will instruct the loan service to pay the refund into my bank account and as there is approx 10 months left on the loan they will reduce the monthly repayments to what they would have been, had I not taken out PPI. They believe this remedy puts me back to the position I would have been in had I not taken out a single premium PPI. They believe this is the same redress the FOS would make.


That is correct as stated here.

The aim of the guidance on redress is to put the customer back in the position he would have been in were it not for the firm's failures.
So if the firm concludes that the claimant would not have bought this or any other PPI policy, it should cancel the policy and refund the premiums, with interest. If necessary, it should restructure the loan as if the policy had never been taken out.y favour.

[adjustmum]

Re: Lloyds have offered to settle my PPI complaint

I have an interesting situation now with the bank, following them upholding my complaint and making the offer to put me back in the position I would have been had I not taken out the PPI I accepted the offer and the payments to date with interest were credited back to my account. The loan was adjusted and monthly payments reduced. I then contacted the loan dept in lloyds and asked for an early settlement figure. This was calculated with the early settlement figure and I agreed to pay off the loan. They wrote to me concluding that transaction and stated the loan was closed and that the DD would be cancelled. I also recieved a final statement detailing all the transactions and the closing balance being zero. This was concluded on 17th November. On 4th January 2010 £387 was taken from my account by DD. When I contacted the back to highlight this error I was told that my loan had not closed and that following adjustments I still owed over £1000. I was shocked to say the least. I have had no correspondance from the bank to inform me of this and quite frankly it feels like theft. I have written to the bank to complain. Where do I stand in respect to DD being taken without euther my knowledge or consent??
Thanks for any advice.