Won but not won

[laughing knome]

:?Hello everyone this is my first ever time on the forum (or on any forum for that matter) so please go easy on me.

 

My friend has recently had a claim uphold by lloyds tsb for a loan mis-selling claim. This would normally be great news but instead of them receiving the money back lloyds has in their infinite wisdom paid the money back into the loan. They say my friend will be better off because the loan term has been shortened but my friend disagrees. They are still paying the same money each month and due to money pressures would ideally like the loan rewritten without the insurance or the cash into their account.

 

Has any one else had the same problem and is there anything that can be done about it?

 

Look forward to all those wise words

[crugga]

Sure I remember someone saying its your right to demand it as a cheque to do with as you please. Dont take my word on that though.

[alanfromderby]

You say that the claim was upheld by Lloyd's/TSB - I presume that the matter never got to the FOS or court?

 

If that is correct, then I would suggest that the person contacts Lloyd's and tells them that their response is not acceptable, and that they must refund the overpayments and reduce the monthly payments.

 

They cannot unilaterally change a credit agreement - any changes have to be agreed by both parties, or it needs to be resolved by the FOS or the court.

[laughing knome]

Is there any basis in law for this? My friend is considering take them to FOS but is not sure if they would be on their side or not?

 

Thanks for getting me started.

[alanfromderby]

Having done some further investigating it may not be as straight-forward as I first thought, and would depend on the type of agreement that your friend has, and how long the agreement has been operating.

 

Whilst a creditor can unilaterally change an agreement under section 82 of the Consumer Credit Act 1974, the new agreement must incorporate the old agreement. Having said that, if sums of money have been paid that should not have been paid, then your friend is entitled to have them refunded.

 

The difficulty would come if this was a front-loaded fixed-term agreement that had not been running for very long, and clearly the sums that were due for the PPI had not been paid. In that case, I could understand a bank not wishing to make a cash refund.

 

Having said that, I would say that there is some mileage in asking Lloyd's to reduce the repayments - rather than period of the loan. If they do not agree to that, then I can't see any reason why a complaint could not be made to the FOS. It does not cost anything to do so - and at worst they can side with the bank.

[loukim]

Hi there

 

Well done ,i have just had my case won with Blackhorse by using the FOS (still waiting for settlement figure)

 

I had claims for 2 Mis-sold PPI's

First PPi was from aloan paid back in full 2005

second PPi for a loan still running

 

With the PPi that is fully paid the FOS have said they are to send a cheque for full settlement for full premium paid including any interest and charges, add interest on each of the additional payments made for this at the rate of 8% per annum simple from the date each payment was made to the day of compensation.

 

With PPI on loan that is still running, they said re-arrange the loan by writing off all amount that remain outstanding in respect of borrowing for the PPI premium, including any interest and charges, so that in future the number and level of outstanding repayments against the loan are the same as would now have applied had we not taken the original loan sum without PPI cover. All premium paid to be paid back with 8% from the day of each payment to the day of compensation all to be received by cheque.

 

I hope this is of help to you, i did find the FOS took no time at all and was very helpfull, my case started on 16th October 07 and Blackhorse agreed to Mis-selling on the 2nd January 08. I guess each case time is different as no case id the same .

 

T

Need any help just give me a bump Good Luck

[alanfromderby]

That's very useful, thanks for posting.

[laughing knome]

thanks loukim. I will apply leverage with lloyds and see what happens?

[loukim]

thanks loukim. I will apply leverage with lloyds and see what happens?

Let me know how you get on.........

You did't say but on what grounds have they mis-sold, as i do think this would be of interest as well as helpfull to the forum

[laughing knome]

:-?Hi Loukim

 

Lloyds TSB response was on a goodwill basis so my friend doesn't know what part of the claim they agreed to uphold.

 

They had complained that the insurance was imposed on them;there were no eligibility checks; the main features of the policy had not been discussed. Pretty generic stuff really.

 

I was wondering if my friend had grounds to claim for the 2 years premiums in cash even if the remaining three years premiums were offset against the loan.

 

Should I be recommending such a stragtegy to my friend or should they stick to their guns and insist the full amount is refunded to them?

 

Does any other bank employ this method as my friend assumed it was common place?

 

I would welcome any help with this

[loukim]

If the loan is still running your friend can ask back for every monthly payment he/she has made for the PPi with 8% interest from date of each payment till the day of compensation as a cheque written out to them and to have the loan put inplace as if he/she had never taken out a PPi making their monthly payments come down.

 

Hope this is of help