LLoyds PPI refund, much lower than my calculations

[overdraft2012]

Hello all,

 

I used the spreadsheet from CAG to calculate the PPI redress on 5 loans I've had with Lloyds over the years, which were sold with upfront single payment policies.

I calculated total redress to be ~£24,000. I sent my complaint to Lloyds regarding these PPI policies and attached the CAG spreadsheets along with copies of original loan agreements showing PPI amounts and loan statements as proof.

 

I have received an offer from Lloyds of £9,200, which is fantastic but is actually less than I paid in upfront PPI alone, nevermind the interest, I attach both my calculations and Llyods, I'd be ever so grateful if someone could clarify who has the correct calculation.

 

There should be 10 attachments in all, first 5 below..

 

 

 

 

Thank you

 

OD2012

[BankFodder]

Please will you post these up in PDF format. If people are going to look at them closely for you then they need to be presented in a far more legible way.

[dx100uk]

One multipage pdf please read upload

[overdraft2012]

Sorry about that, please see attached combined and compressed PDf, hope this is okay?

od2012 PPI Redress.pdf

[overdraft2012]

I wondered if anyone had a view on this redress calculation? Have I used the CAG Spreadsheet correctly, or have I made a big mistake which explains the difference of £14800 between my 'total' and Lloyds total.

 

Thanks

[dx100uk]

hopefully tonight sorry been busy.

[dx100uk]

welcomes breakdown certainly looks technically correct, but without seeing the agreements and statements = no comment.

 

I don't think you have calculated the rollover PPI correctly either in the spreadsheets...

 

read:

https://www.consumeractiongroup.co.uk/forum/showthread.php?318646-PPI-Single-Premium-Your-questions-answered(1-Viewing)-nbsp

[overdraft2012]

Thank you for looking into this dx100uk.

 

I read through that link several times before starting the spreadsheets, I've revisited it to double check, but I cant see what error I have made

 

Looking at Lloyds calculations I don't understand why row A (Cost of single premium PPI policy added to the loan) amounts to £8673.82, yet row DI (PPI premiums to be refunded) is only £1698.97.

 

I have all SAR information from them and there is no record of any part refunds of PPI premiums when taking out new loans, is the onus on me or them to prove this?

[dx100uk]

can you upload your .xls files here please

read upload

[dx100uk]

sorry they are above

you've inc the lump sum PPI at the start of each loan..you cant reclaim that & the monthly PPI sums

[overdraft2012]

The monthly PPI sums are just showing the interest charged on the PPI element.

 

Looking at loan 1 for example

 

Loan - £5000

PPI - £1024.39

PPI added to the loan, total loan = £6024.39

Total interest charged on PPI element =£126.35

So in total, I paid Lloyds £1150.74 for this PPI

 

My understanding was that the customer should be put back into the position had they not been sold the PPI, so;

 

1) Refund upfront single premium PPI payment of £1024.39

2) Refund the proportion of interest charged on the £1024.39 throughout the period of the loan, in this case, I made 12 monthly repayments before refinancing with loan 2, giving a total of £126.35 in interest charged.

3) Pay 8% simple interest on the above amounts until the date of the claim. = £2081.46

 

Total of 1,2 & 3 = £3232.2

Lloyds PPI refund offer = £563.08

 

Please could you point out where I've gone wrong on that? Thank you.

[dx100uk]

no because you didn't actual pay the PPI upfront in one lum sum at the start! you cant enter that! .

 

if the loan was £6024.39 then..

 

1024.39/6024.39 * 100 = 17%

 

so anything you paid then 17% was for PPI

 

so how much was your monthly PCM?

[overdraft2012]

£143.32 pcm

 

I made 11 monthly payments of £143.32, before settling the loan with a payment of £5191.14

[dx100uk]

so each of the 11 months you actually paid £143.32 you paid 17% for PPI = £24.36 for ppi

so enter each of those in a new statint sheet copy on those actual monthly dates.

then when you settled for £5191.14 you paid £882.49 on that actual date too

 

that's the sheet done

 

how have you calculated this 'rollover' was the 5191.14 settled from a new refinance loan ...so a new loan settled the old one?

[overdraft2012]

Yep that all makes sense now, thank you. I now need to re do all my spreadsheets correctly.

 

Yes this loan was settled early by a further Lloyds loan with a single premium PPI,

I worked out the amount of PPI outstanding at the point of taking out the new loan,

worked out what percentage of the new loan that figure was, i.e 12%,

then entered 12% of every new loan monthly payment as 'loan 1 PPI'.

[dx100uk]

10/10 the right way..

[overdraft2012]

Hi DX,

 

I've revised all the spreadsheets using the correct method, please see attached,

the total is still way off what Llyods have offered,

 

is this worth referring to ombudsmen or are my calculations still wrong and Lloyds correct somehow?

The figures I've entered are exactly what is on the loan statements/ agreements I have.

 

I have another 5 loans with them from later years which also have PPI, they seem to be dealing with them separately to these loans as they were business loans, so I don't think that's affecting the redress here as they are not showing as being linked on the loan agreements.

od2012 PPI Redress Rev1.pdf

[dx100uk]

so loan 1 rolled into loan 2 rolled into loan 3

so loan 3 settled loan 2?

[overdraft2012]

According to the loan agreements, loan 2 was used to refinance loan 1.

 

The loan 3 agreement says it's not refinancing any other loan, but the dates of clearing loan 2 and receiving funds from loan 3 do tie in, also Llyods seem to have treated it as a rollover on their redress calculations, however I have treated it as a separate loan on the revised calculations as per the loan agreement, also loan 3 was only £3000, so it would not on itself clear the balance of loan 2.

[dx100uk]

then loan 1 PPI cant appear in loan 3

[overdraft2012]

That was a typo, I've corrected those two entries on the attached. Other than that does it now look correct to you?

[overdraft2012]

Revised spreadsheet attached.

od2012 PPI Redress Rev2.pdf

[dx100uk]

all looks good now

[overdraft2012]

Thanks DX, I really appreciate your help with that! So the redress figures are substantially different to Lloyd’s final response, what would your next step be?

[dx100uk]

send then it see what they say..