Lloyds TSB PPI offer

[oneofakind]

Hi folks,

 

I'm seeking some advice on behalf of a family member - She took out a LTSB loan some years ago, and was bunged PPI as part of the deal.

 

Because of illness, she eventually defaulted on the loan (NOT COVERED BY THE PPI), which is now being handled by Moorcroft; she pays them monthly. (I don't know if Moorcroft own the debt, or are collecting on behalf of LTSB)

 

She's made a complaint about mis-sellin, which has been 'handled' internally by LTSB. They have recently sent her what appears to be a standard offer letter, offering repayment of her premiums plus 8% interest (no figures quoted).

 

BUT - they want to deduct the 'refund' from the outstanding balance on the loan. I don't believe this is fair, as this is money she was charged wrongly, and in my view should be put back in her hand.

 

The fact is that even a relatively small sum like this would be a great help to her - she lives hand-to -mouth, and never has a spare few quid for herself, despite working 50+ hours a week.

 

Can anyone advise whether this is acceptable?

 

The letter implies that her options are to accept what's offered, or go to the FOS.

 

Sorry, I don't have any details beyond what I've given, but appreciate I'll need to find out more.

 

Any advice greatly appreciated.

 

Regards,

 

Oneofakind.

[ims21]

Hi

 

Take a look here

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?292292-PPI-repayment-offset-against-outstanding-debt-question&highlight=set+off

 

ims

[oneofakind]

Latest news...

 

She received an offer letter.. settlement in the region of £4k, which was considerably more than she was expecting.

 

So she phoned them up and accepted (against my advice, not having seen the letter, t&c's etc).

 

They suggested they could set the award against the outstanding balances that she has...

 

She said 'er, I'd rather have a cheque'

 

- and they agreed! Promised it within 14 days.

 

Not counting any chickens yet, but looking good.

[ims21]

Result!!!!

 

Well done

 

ims

[Madge67]

. Good result!!! Ive just made a claim over the telephone - my loan is also now with Moorcroft having been sold on by LTSB so the situation is very similar. Can I ask when your family member made the initial claim and was it in writing or by post??. Just wondering how long mine may take.

 

well done again though -

 

Madge

[oneofakind]

Well,

 

Almost 3 months now, and no payment has been received!

 

Lots and lots of excuses, false promises etc.

 

Maddeningly, I know of at least one person who started their claim after my last post, and they've been paid!

 

Any suggestions?

 

{sorry Madge - not been on here for a while! The claim started during a restucturing of her finances due to the illness - this was actually all done in-house by ltsb (an extremely helpful face to face advisor, I have to admit!). Because her condition was disclosed to the bank when the loan was taken out, she should have not been sold ppi in the first place, and this was admitted by the bank. All dealings were face to face: the advisor met with A. and my OH. Personally, I'd be doing everything in writing, you can't beat a paper trail!}

[ims21]

Hi

 

Lloyds are taking their time at the moment unfortunately.

 

You could write a complaint letter to them telling them that you will of course require interest to be recalculated to the new settlement date and that you have noted their failures which will be reported to relevant authorities of the delays in payment continue further than another x days.

 

ims