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Hi folks hope all are well.:tinysmile_twink_t2:
Been recently refunded loan PPI from LLoyds, but having trouble understanding in how they calculate.
The thing is with LLoyds they do not send you the offer amounts until afterwards, so basically with them upholding in your favour and then statting they calculate in line with the regulations as set out by the FOS, then you think then nothing can go amiss.
So if anyone can advise me on this, it will be a great help, I will post up a little at a time.
So sorry this is so long.
Cheers.
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Decision
I have reviewed the records relating to the sale of your loan protection policy and have taken into account your comments noting your circumstances at the time of sale.
I have decided to uphold your complaint and offer to settle your complaint in the following manner which is in line with the standard redress remedy recommended by the Financial Ombudsman
Service. The offer I propose to make involves two calculations.
Calculation one
I will calculate the difference between the settlement balance you have paid on the loan and what the settlement would have been had the PPI premium not been added to your loan.
I will then calculate an 8% interest payment on this sum from the day the loan was settled to the day the calculation is completed.
Calculation two
I will then calculate the amount you have paid up to the date of cancellation and refund this back to you. This is worked out by calculating how much you paid each month in respect of the insurance loan alone and then multiplying this figure by how many months the insurance was active for.
If you would like a clearer indication of the PPI monthly payments you have paid to date, you will be able to obtain this information from the copy of the Consumer Credit Agreement you received when taking out the loan. This document will tell you the PPI monthly premium amount and will be the figure I will use when calculating your refund. This amount will then be multiplied by the number of monthly payments you have made.
I will then add simple interest at 8% per annum to each monthly payment from the date you paid each amount, to the date you settled the loan.
A further 8% simple interest per annum will be calculated on this total amount from the date of early settlement of the loan to the present date.
The 8% simple interest amount will then be calculated when I receive your signed acceptance. This will only be processed at this point to ensure the figure is calculated accurately and more importantly, correctly. The calculated simple interest at 8% will then be refunded into your bank account
Please be advised that this redress remedy has been designed to ensure that you are put back to the same position you would have been in, had the single premium PPI not been included with your loan. The redress remedy that I am offering to you is the same redress remedy that an adjudicator at the Financial Ombudsman Service (the FOS) would make in your favour.
------------------------------- merged -------------------------------
Details of settled loan:
Loan amount: £10,000
PPI: £2241.37
Total loan = £12,241.37
Monthly repayment: £188.80
APR: 7.9%
So the PPI paid into this if you split this from the loan was therefore: £34.57 a month PPI.
So basically 10 months of that amount of PPI paid, then the 11th month the full amount settlement was paid.
A rebate of £1,658.23 were applied.
This would leave about £762.82 not used plus the 10 payments of £34.57 and the Simple interest they say they are going to award.
So with additional stat int £854.85 the total refunds works out as:
£1,617.67
------------------------------- merged -------------------------------
How they worked this out....offer arrived after signing acceptance for upholding.
1) A calculation of the difference between the settlement balance you have paid on the loan and what the settlement balance would have been had the Insurance Premium not been added to your loan.
We have calculated that the difference would have been £439.47
2) Your loan term was 84 months and out records show that you made 10 monthly insurance payments which total £345.69.
3) Simple Interest of 8% per annum has then been added to the final figures (1) and (2) which total £280.91.
Total refund = £1066.07
------------------------------- merged -------------------------------
I emailed them last week to ask they look again, sent them copies of a spreadsheet and complained that I did not think it was in line with the FOS, the today received this letter:
Dear
Thank you for your recent correspondence, regarding the refund calculations on your Personal Protection Insurance.
I understand that you feel we made an error in these calculations, and have forwarded your own calculations for our reference. I have, therefore, requested that our calculation be double checked, to ensure that the amounts offered were accurate.
I would like to point out that our refunds are calculated in line with the regulations as set out by the Financial Ombudsman Service (FOS).
The total contractual payments a customer has made on the loan, with interest that as been charged on the loan protection insurance payments , is calculated. The interest is based on the percentage that the branch has applied to the loan. The Settlement difference is then calculated and is based on the settlement balance a customer paid when settled the loan, with the settlement balance a customer would have paid if the Loan never had insurance. The settlement balance without the loan protection insurance is taken away from the actual settlement balance a customer has paid. 8% is calculated on this figure as well as 8% on the total contractual payments made.
Having checked these figures again, I can confirm that our calculations and the amounts offered are correct.
However, if you are still dissatisfied with the amounts, you can ask the Financial Ombudsman Service to independently review your complaint.
Should you wish to do this you must refer the matter to them within 6 months of the date of this letter. Please refer to the leaflet we sent you in our letter dated 7 March 2010 which explains about this service.
Yours sincerely
Customer Relations Manager - LLoyds TSB Insurance.
Been recently refunded loan PPI from LLoyds, but having trouble understanding in how they calculate.
The thing is with LLoyds they do not send you the offer amounts until afterwards, so basically with them upholding in your favour and then statting they calculate in line with the regulations as set out by the FOS, then you think then nothing can go amiss.
So if anyone can advise me on this, it will be a great help, I will post up a little at a time.
So sorry this is so long.
Cheers.
------------------------------- merged -------------------------------
Decision
I have reviewed the records relating to the sale of your loan protection policy and have taken into account your comments noting your circumstances at the time of sale.
I have decided to uphold your complaint and offer to settle your complaint in the following manner which is in line with the standard redress remedy recommended by the Financial Ombudsman
Service. The offer I propose to make involves two calculations.Calculation one
I will calculate the difference between the settlement balance you have paid on the loan and what the settlement would have been had the PPI premium not been added to your loan.
I will then calculate an 8% interest
payment on this sum from the day the loan was settled to the day the calculation is completed.Calculation two
I will then calculate the amount you have paid up to the date of cancellation and refund this back to you. This is worked out by calculating how much you paid each month in respect of the insurance loan alone and then multiplying this figure by how many months the insurance was active for.
If you would like a clearer indication of the PPI monthly payments you have paid to date, you will be able to obtain this information from the copy of the Consumer Credit Agreement you received when taking out the loan. This document will tell you the PPI monthly premium amount and will be the figure I will use when calculating your refund. This amount will then be multiplied by the number of monthly payments you have made.
I will then add simple interest at 8% per annum to each monthly payment from the date you paid each amount, to the date you settled the loan.
A further 8% simple interest per annum will be calculated on this total amount from the date of early settlement of the loan to the present date.
The 8% simple interest amount will then be calculated when I receive your signed acceptance. This will only be processed at this point to ensure the figure is calculated accurately and more importantly, correctly. The calculated simple interest at 8% will then be refunded into your bank account
Please be advised that this redress remedy has been designed to ensure that you are put back to the same position you would have been in, had the single premium PPI not been included with your loan. The redress remedy that I am offering to you is the same redress remedy that an adjudicator at the Financial Ombudsman
Service (the FOS) would make in your favour.------------------------------- merged -------------------------------
Details of settled loan:
Loan amount: £10,000
PPI: £2241.37
Total loan = £12,241.37
Monthly repayment: £188.80
APR: 7.9%
So the PPI paid into this if you split this from the loan was therefore: £34.57 a month PPI.
So basically 10 months of that amount of PPI paid, then the 11th month the full amount settlement was paid.
A rebate of £1,658.23 were applied.
This would leave about £762.82 not used plus the 10 payments of £34.57 and the Simple interest
they say they are going to award.So with additional stat int £854.85 the total refunds works out as:
£1,617.67
------------------------------- merged -------------------------------
How they worked this out....offer arrived after signing acceptance for upholding.
1) A calculation of the difference between the settlement balance you have paid on the loan and what the settlement balance would have been had the Insurance Premium not been added to your loan.
We have calculated that the difference would have been £439.47
2) Your loan term was 84 months and out records show that you made 10 monthly insurance payments which total £345.69.
3) Simple Interest of 8% per annum has then been added to the final figures (1) and (2) which total £280.91.
Total refund = £1066.07
------------------------------- merged -------------------------------
I emailed them last week to ask they look again, sent them copies of a spreadsheet and complained that I did not think it was in line with the FOS, the today received this letter:
Dear
Thank you for your recent correspondence, regarding the refund calculations on your Personal Protection Insurance.
I understand that you feel we made an error in these calculations, and have forwarded your own calculations for our reference. I have, therefore, requested that our calculation be double checked, to ensure that the amounts offered were accurate.
I would like to point out that our refunds are calculated in line with the regulations as set out by the Financial Ombudsman
Service (FOS).The total contractual payments a customer has made on the loan, with interest
that as been charged on the loan protection insurance payments , is calculated. The interest is based on the percentage that the branch has applied to the loan. The Settlement difference is then calculated and is based on the settlement balance a customer paid when settled the loan, with the settlement balance a customer would have paid if the Loan never had insurance. The settlement balance without the loan protection insurance is taken away from the actual settlement balance a customer has paid. 8% is calculated on this figure as well as 8% on the total contractual payments made.Having checked these figures again, I can confirm that our calculations and the amounts offered are correct.
However, if you are still dissatisfied with the amounts, you can ask the Financial Ombudsman
Service to independently review your complaint.Should you wish to do this you must refer the matter to them within 6 months of the date of this letter. Please refer to the leaflet we sent you in our letter dated 7 March 2010 which explains about this service.
Yours sincerely
Customer Relations Manager - LLoyds TSB Insurance.
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