Lloyds PPI calculation PLEASE HELP

[stark13]

Re: Lloyds PPI calculation PLEASE HELP

Also sorry one more thing. On the spreadsheets i see no mention of specific interest rates of each loan as these vary. Are we not getting paid back the interest we actually paid on the ppi? The interest was taken out of the loan account monthly in my case and not part of the whole amount. Therefore this increased the total loan, and the balance would increase every month.

[Bill-K]

Re: Lloyds PPI calculation PLEASE HELP

Hi Bill, thanks so much for your help. I've understood all of the above. I have a feeling they've either calculated it a different way or just calculated it wrong. Do lloyds tend to get things wrong alot in the FSA your experience on this forum?
The FSA/FCA have set out examples of how these calculations should be made, and IMO any lender who doesn't use the FSA methods is either totally incompetent or is deliberately circumventing them. I personally doubt very much that Lloyds are thick !!! Likewise with the rest of the rat-pack. Pleading ignorance is totally unacceptable from the likes of these multi-million firms.
One other question i wanted to ask you is that if you look at my original information about the loans i gave you, i have got my rebate figures from this as there is nothing that specifically says "rebate" on the loan account.
For example on Loan 1, the settlement amount is £2746.87 and the amount of debt carried over to the next loan is only £2300, subtracting these figures gives a rebate of £446.87. Now 497.20 of ppi was carried over to the next loan, this minus the rebate gives £50.22 of ppi carried forward to next loan. Does this sound right to you? Do you remember anyone else asking the question about ppi rebates from lloyds and how they found them?

I suspect that your calculations regarding PPI Rebates are probably pretty near the mark. I think that you need to put Lloyds in the dock, and get some more info from them. Don't feed them with clues, though.

Also sorry one more thing. On the spreadsheets i see no mention of specific interest rates of each loan as these vary. Are we not getting paid back the interest we actually paid on the ppi? The interest was taken out of the loan account monthly in my case and not part of the whole amount. Therefore this increased the total loan, and the balance would increase every month.
This is the beauty of 'Apportionment.' Regardless of what the interest rates were, what you paid each month included account interest at whatever rate it was being charged. Account interest is automatically included whether interest rates rose or dipped.

[stark13]

Re: Lloyds PPI calculation PLEASE HELP

oh thanks for that Bill, understood!

Can i ask one more thing please? On loan 2, lloyds have given an offer of:

Premiums paid: £231.01
settlement difference: £802.64
Interest: £1006.13

Do you have any idea how they could have got these figures approximately? It's much higher than the ones you've calculated so i'm guessing the do it in a different way?

[Bill-K]

Re: Lloyds PPI calculation PLEASE HELP

I have written proof from Lloyds that they do it in a different way. With another Lloyds PPI claim - despite sending their CEO my own calculations, the FSA rules regarding calculating PPI redress, and an explanation of how and why they were doing it wrong - they continued to insist that their method was correct. Lloyds have since admitted very publicly that they systematically misled claimants. Either their claims monkeys were untrained idiots, or they knew EXACTLY what they were doing by misleading claimants. Whatever the case, it is despicable conduct.

I suspect that they still treat each loan totally separately, as they have done in my previous experience with them. This means that the 'residual' PPI is not carried forward from one loan to the next. Taking Loan 2, this means that they would offer a larger amount in settlement than is indicated in the spready - BUT - the PPI in loan 3 (and 4 & 5) will have been reduced, as it is not carried forward.

This may at first seem a mere detail, but remember that account interest is added to each loan, and a portion of that interest is attributable to the carried-forward PPI. It snowballs throughout the loan sequence. If we look at loans 1 to 4, the 'discrete' calculation method will probably look better than the 'carry-forward' method - but when we get to the final loan 5, the 'carry-forward' method finally pays off, hence the apparently huge amount claimed from this loan. We have to compare the total claim quantum from all 5 loans in order to decide which method is best for us. In some cases involving smaller amounts or short periods of time, the 'discrete' method actually works out better - but in this case, I feel sure that the FSA/FCA-endorsed 'carry-forward' method is best.

[stark13]

Re: Lloyds PPI calculation PLEASE HELP

So what would you suggest i do if they insist their method is right?

[Bill-K]

Re: Lloyds PPI calculation PLEASE HELP

I can only suggest that you point out that the 'carry-forward' method is clearly specified by the FCA in the PPI Redress Handbook contained within Appendices 1 & 2 of the FSA Policy Statement PS 10/12. Specifically, DISP APP 3.2.7, 3.9.2, & 3.9.3 - along with the worked example 8 in Appendix 2.

http://www.fsa.gov.uk/pubs/policy/ps10_12.pdf

I would copy in the CEO to this, mentioning the recent public admission by Lloyds that they were consciously and systematically misleading claimants and flouting the FSA/FCA rules - in particular DISP 1.4.1.

http://fshandbook.info/FS/html/handbook/DISP/1/4

Don't send them your actual figures yet, but wait and see how they respond.

I'm afraid I didn't get anywhere when I did this previously with a Lloyds PPI complaint, but I think there is now a better chance that your complaint will be looked at properly. In the end, I reluctantly had to refer the complaint to the FOS, and am awaiting their decision. Considering the time it now takes the FOS to deal with PPI complaints, I would try and get Lloyds to calculate it properly if you can.