Lloyds PPI claim 2007

[di30]

Re: Lloyds PPI claim 2007

Ok thanks Di,I presume you mean manager of his branch.

Your very welcome and yes that is correct.

[ferrotty]

Re: Lloyds PPI claim 2007

Many thanks to those who have offered advice on this forum particularly Di who is a gem,please see below response from Lloyds


Today I have received an offer from Lloyds offering a total of £2815.90 in full and final settlement,this breaks down into so-

Refund of premiums £1046.98
Early settlement difference £1500.50
Interest at 8% 268.42
total £2815.90

Looking at the payments made for the PPI part I work out that he has paid 24 payments before he defaulted on loan,the loan payment was reduced after 16 payments from £196.59 down to £150 which he then made another 7 payments at £150 and one at £180,I am not sure why one at £180 though.

Anyway the PPI part of those payments were £47.90 if you multiply by 24 you get £1149.60 which is close to the refund of payments above,I am not sure what early settlement difference is but it seems on the whole a reasonable offer unless I have missed something. Can anyone advise me on whether it should be accepted, the spreadsheet I used to calculate his payments is within this thread thanks.

[di30]

Re: Lloyds PPI claim 2007

Many thanks to those who have offered advice on this forum particularly Di who is a gem,please see below response from Lloyds


Today I have received an offer from Lloyds offering a total of £2815.90 in full and final settlement,this breaks down into so-

Refund of premiums £1046.98
Early settlement difference £1500.50
Interest at 8% 268.42
total £2815.90

Looking at the payments made for the PPI part I work out that he has paid 24 payments before he defaulted on loan,the loan payment was reduced after 16 payments from £196.59 down to £150 which he then made another 7 payments at £150 and one at £180,I am not sure why one at £180 though.

Anyway the PPI part of those payments were £47.90 if you multiply by 24 you get £1149.60 which is close to the refund of payments above,I am not sure what early settlement difference is but it seems on the whole a reasonable offer unless I have missed something. Can anyone advise me on whether it should be accepted, the spreadsheet I used to calculate his payments is within this thread thanks.

Well done! And your very welcome.

I am not good on the calculation side of it, but what I do know is you should receive all that was paid of the PPI, plus the relevant interest, and if a on a settled/paid off loan, they may have reduced the balance by a rebate of the PPI, so you have to minus any rebate used when it was settled, and receive the remaining of the PPI, plus interest.

I'm sure the guys will confirm on this later.

Again Well done! x

[di30]

Re: Lloyds PPI claim 2007

And the link of understanding calculations posted by Turbo/Bilk.

http://www.legalbeagles.info/forums/...play.php?f=277

[ferrotty]

Re: Lloyds PPI claim 2007

I just found this article and it covers my sons scenario in that he defaulted on the loan and it was sold to a credit Co and basically from what I read and could someone confirm this is what it is saying is that Lloyds should refund all the PPI premium even though only part payment was made as the entire loan (PPI Included) has been sold to the debt agency,quote below



Normally they would adjust the loan balance for the unpaid part of the PPI, offset the claim against any arrears on the account and refund the balance to the claimant. As they have assigned all rights etc to the dca, they can no longer interfere with the balance on the account (generally speaking).

So what they have to do to put things right is to refund the entire premium to the claimant plus the interest they would have charged on the payments by the claimant and then plus interest on those payments by way of compensation, typically 8% statutory interest.

So because they sold it on as the entire loan PPI included then they should refund me the entire PPI payment plus Interest so I can pay the debt agency off.

[ferrotty]

Re: Lloyds PPI claim 2007

Here is the letter I am about to send off,can someone confirm that what I am doing is correct thanks.



Dear Samantha,

I am writing in response to your letter of 16 February 2012 ref my loan and PPI payment and making me an offer of £2815,90 in total for the miss selling of PPI and refund plus Interest etc.so please see my response below as you have sold my debt on.

Normally you would adjust the loan balance for the unpaid part of the PPI, offset the claim against any arrears on the account and refund the balance to me the claimant but as you have assigned all rights etc to the debt agency then I need to be put in a position were I can repay that debt or part of it.

So what you need to do to put things right is to refund me the entire PPI premium plus the interest you would have charged on the payments by me and then plus interest on those payments by way of compensation, typically 8% statutory interest.

So the debt agency has a figure that has been sold to them for my loan, that figure would still include some of the PPI but you the bank can’t touch that. By refunding me the entire premium plus the appropriate interest then I the claimant will be able to use that refund to pay off part or all the debt to the debt agency and you the bank are giving me back more than I have actually paid in order to fund that.

Yours Faithfully


PS Should I also ask that the default on his credit account be removed?.

[Turboman]

Re: Lloyds PPI claim 2007

I think it sounds ok----but wait while Bill logs on after nightshift though before sending anything

[ferrotty]

Re: Lloyds PPI claim 2007

Ok Cheers Turboman

[Bill-K]

Re: Lloyds PPI claim 2007

Hi FerrottyI've not been involved with this claim, but Turbo and I work together as much as we can. I'll leave the maths here to Turbo, as I'm sure he will see you OK. I have yet to fault the guy on his maths.If you haven't sent the letter, then I would propose a couple of suggestions - but certainly non-essential.

Here is the letter I am about to send off,can someone confirm that what I am doing is correct thanks.Dear Samantha,I am writing in response to your letter of 16 February 2012 ref my loan and PPI payment and making me an offer of £2815,90 in total for the miss selling of PPI and refund plus Interest etc.so please see my response below as you have sold my debt on. Normally, I believe you would adjust the loan balance for the unpaid part of the PPI, offset the claim against any arrears on the account and refund the balance to me the claimant but as you appear to have assigned all rights etc to the debt agency then I need to be put in a position were I can repay that debt or part of it. So what I believe you need to do to put things right is to refund me the entire PPI premium plus the interest you would have charged on the payments by me and then plus interest on those payments by way of compensation, typically 8% statutory interest.So the debt agency has a figure that has been sold to them for my loan, that figure would still include some of the PPI but you the bank can’t touch that. By refunding me the entire premium plus the appropriate interest then I the claimant will be able to use that refund to pay off part or all the debt to the debt agency and you the bank are giving me back more than I have actually paid in order to fund that.Yours Faithfully

PS Should I also ask that the default on his credit account be removed?.Why not, say I ?

....

[ferrotty]

Re: Lloyds PPI claim 2007

Many thanks to you both,I will send off tomorrow and let you know what happens.

[Turboman]

Re: Lloyds PPI claim 2007

Ferotty

I am sorry to say that I took my eye off your thread and the calculations therein

I will re read all the thread and respond by 7:00pm EDIT--GD arrived--make that 9:00pm--lol

The question of claiming charges from your current account incurred 'cos ypu couldn't meet the full loan payments (incl PPi) is known as "Consequential Loss" and is an area that Bill was pioneering with Nelliewops---Note this is not to be confused with the claim of straightforward mis-selling of PPI

I'm not up to date re Bill's pioneering work with Nelliewops-but I think they have not got satisfaction from FOS---Bill will no doubt comment on that aspect later

I'll look at your case again now

Turbs

[ferrotty]

Re: Lloyds PPI claim 2007

Ok cheers Turboman

[Bill-K]

Re: Lloyds PPI claim 2007

FWIW, I've quickly run the figures through my own spreadsheet, and the offer looks fine to me. I think the settlement difference will be the amount of PPI that was included in the final settlement amount. This should be about 24% of the settlement figure, so if the settlement figure was around £6200, then this looks OK to me.

Presumably, the remaining debt (of £6200 approx ?) was sold on, but if the PPI included in it has been refunded here (ie., the £1500.50 settlement difference), then the remaining debt will not be reduced.

Sorry, I didn't realise there was an additional aspect to this claim until Turbo mentioned it. Regarding the 'Consequential Losses' aspect, this is a bit more complex to calculate. We have such a claim with the FOS, awaiting a decision, but they are not hurrying, of course.

What we have to do to calculate these losses is to list in a spready all the current account transactions which may be relevant to this claim - that is, O/D interest and charges, penalty charges, and PPI loan repayments, along with the account balance after each transaction. The spready then calculates what the account balance (the 'Notional Balance') WOULD have been if the PPI had not been sold. We then have to identify (and quantify) the other charges made to the account, and decide if they would not have been made if the PPI had not been sold, because the account balance would have been higher - going through the list, and adjusting the Notional Balance' each time. Finally, the spready calculates 8% SI on each of the reclaimed amounts, and then adds the whole lot up.

So, it takes a bit of time and effort, and we still don't know if the FOS will uphold the claim - but I believe it should. I'll take the figures from Ferrotty's spready posted earlier, and see what comes up.
Somebody remind me if no reply in a few days. Short-term memory shot to pieces due to recurrent war wound. eep: Took a direct hit from a Jager Bomb !!! :boom:

[ferrotty]

Re: Lloyds PPI claim 2007

Thanks Bill

Looking through his statements within a few months of the loan (by the way which he used to pay another loan off)he is into overdraft territory of approx £500 so you could not say the PPI payment part was causing this and he is since then consistently between 300 and 700 in overdraft,now from 01/01/2008 for 12months he is consistantly hit with O/D charges which total some £1500 but then the charges appear to be reduced somewhat from 01/02/2008 to an average of £50 per month but at the same time from 01/05/2008 he is hit with returned DD ranging from mainly £20 but up to £80 and I can well see how he can never keep in the black as he is only on about £300 week.

I know at the moment he has some kind of overdraft agreement with them I presume raising the amount he can have and have noticed over the last month since I sent them a hardship letter that they have started to wave some charges,I think what riles me most is the size of the charges and I know a ruling came in (not sure when)that the charges must be proportionate to the costs.

Anyway got that letter of PPI settlement on Wed and the money was in his account Yesterday might even have been before and I have still not written any acceptance yet,it does say ring this No urgently if you dispute amount.

PS

I am now going to look at his Nationwide Bld Soc loan to see if that had PPI in it.

[ferrotty]

Re: Lloyds PPI claim 2007

I'm going to try a letter to Lloyds on the bank charges any suggestions welcomed before I send it off thanks.




Mr X

27th February 2012

Lloyds TSB Bank Plc
25 Gresham Street
London
EC2V 7HN

Dear Sir or Madam,

Account No ********


I am writing to request that you repay all the charges in relation to direct debits, unauthorised overdrafts and standing orders that have been applied to my account in the past six years.

I believe the fact that I have been incurring bank charges goes contrary to the aims of the Lending Code (Section 9) and Banking Conduct of Business Sourcebook (section 5.1.4 ‘in particular, a firm should deal fairly with a banking customer whom it has reason to believe is in financial difficulty’).

Also Under the Unfair Terms in Consumer Contracts Regulations 1999 charges must reflect administration costs and cannot be punitive. I believe that the charges are unlawful as they do not reflect the true cost of going into an unauthorised overdraft.

My personal situation has been affected by the charges leaving me in financial hardship and I am writing to request that you take the following grounds into consideration


• I can’t pay my debts and have recently reclaimed PPI from you that were mis-sold to me, these extra premiums being one of the reasons why I could not serve my debt.
• My Income has been eaten by charges some £1800 in one year alone (2008) starting within 3 months of the loan I took out from you.
• Payments regularly returned due initially to the excessive charges levied on my account these charges were disproportionate to the debt I owed and were directly responsible for my spiral into debt.
• I have been constantly over my overdraft limit and you gave me no assistance when the high charges were being levied’, these charges have contributed to making my financial hardship situation materially worse; I do though acknowledge that you occasionally waved charges and Increased my overdraft but this was too little to late.
• I had been stuck in a cycle of charges and not being able to clear them before new daily or monthly fees and returned direct debits are added on top.
• I have over the time built up various debts with family and friends trying to help me but at least the award for mis-sold PPI has gone some way to paying my debts down along with the still outstanding money owed to the credit agency but it still leaves me in debt.

The charges total £2636 in unplanned overdraft fees plus £780 in returned Direct Debits and I ask that you repay me the full amount.

Plus as I believe I have been unfairly deprived of the money and I ask that interest at the statutory rate, the amount a court would award and I ask that this be added to my claim.

I have attached a full schedule of the charges with this document.

I look forward to a full response to this letter within 14 days and if I do not receive a satisfactory response I intend to pursue my complaint to the Financial Ombudsman Service or small claims court with supporting docs and letters from myself under the financial hardship criteria at the earliest opportunity.

Yours faithfully,


Mr X