Lombard Direct ~ PPI

[birchave0]

My aunt took out a loan with Lombard a couple of years ago. The loan was for £20k. She has recently remortgaged with a view to consolidate her debts so she Subject access request'd them to get the full details of the account.

When all of the info arrived it appeared that there is PPI on the loan which on its own comes to over £6k WTF!!! I asked her if she remembered taking out the cover but as it was done over the telephone she can't remember.

Lombard sent her out a settlement figure for the loan, we took that figure then removed from it the full cost of the PPI. We then used that new figure as a full and final offer against the loan.
We wrote to them with this offer and informed them that the PPI was never requested and my aunt would have been exempt from the cover as she has pre existing medical conditions. We also pointed out that at the point of sale no mention of this cover being available from elsewhere was mentioned or that the cover was optional.

Lombard has replied by saying that their operators would never force the PPI on people (yeah, right) and they dispute that the cover was miss sold. Therefore they will not uphold the complaint, but as a gesture of goodwill they have offered £750.

Are we in a position to write back to them, thanking them for the £750 but inform them that will accept it only as a part payment against the remainder of the £6k?

I could do with a really good letter guys, I myself feel £6k for insurance on a £20k loan is a total rip off, I'm sure she could have bought cheaper elsewhere. She also works for NHS so had she been ill she would be on full pay anyway.

Any advice good people

[dx100uk]

definately!
and i would not 'just' ask for the PPI figure.
you are entitled to reclaim + the interest they charged you + 8% stat.
which will be a lot MORE .

have a look in the posts in red [the stickies] there is a calculator there & a very good general guidance thread

go get 'em!!!

dx

[birchave0]

Originally Posted by dx100uk

definately!
and i would not 'just' ask for the PPI figure.
you are entitled to reclaim + the interest they charged you + 8% stat.
which will be a lot MORE .

have a look in the posts in red [the stickies] there is a calculator there & a very good general guidance thread

go get 'em!!!

dx

thank you DX!
I did think it rather strange to refuse to refund then offer £750 as a gesture! It's a rather large gesture!
Will tottle off for a read now......

cheers

Birch

[leviculus_puella]

its good theyve offered you this gesture lol must mean theyre feeling guilty!!!

[alanalana]

Originally Posted by ceri1234

its good theyve offered you this gesture lol must mean theyre feeling guilty!!!

Probably not feeling guilty just trying to avoid a rather large fine which could be imposed by the FSA

[birchave0]

ok guys, have cobbled together this letter is it ok to send or would you add anything to it?

cheers

Birch


xxxxxxxxxxx

Lombard Direct
Lombard House
339 Southbury Road
Enfield
Middlesex
EN1 1TW

24th June 2009

Re: Account number xxxxxxxxxxx
Response to gesture of good will offer.

Dear sir
Thank you for your letter dated xx/xx/xx
I respectfully decline your offer as full and final settlement and request, once again, that you return to me all of the Payment Protection Insurance premium imposed on this account, totalling £6880.91

I will accept the sum offered only as part settlement and on the clear understanding that I will pursue recovery of the remainder, with a county court claim if necessary.
I now require you to send a cheque for £750 as I will not accept any other method of payment.

If you do not accept my conditions for acceptance, or you do not respond within 7 days, I shall lodge an official complaint with the fos against. For the avoidance of doubt, I wish to stress that I do not accept your offer under the terms stated in your letter.

I also again ask for you to provide me with a current settlement figure for the above loan account.


I trust this clarifies my position.


Yours faithfully



xxxxxxx

[dx100uk]

how has the £6880.91 PPI been arrived at?
is this including any interest that would i suspect have been subsequently added?

and ofcourse the 8% stat int that you would be entitled too should this ever go as far as a court case.
most co's that refund PPI seem to accept this is std practice to refund also.

dx

[birchave0]

Originally Posted by dx100uk

how has the £6880.91 PPI been arrived at?
is this including any interest that would i suspect have been subsequently added?

and ofcourse the 8% stat int that you would be entitled too should this ever go as far as a court case.
most co's that refund PPI seem to accept this is std practice to refund also.

dx

The £6880.91 is the total of amount of PPI including the interest, I haven't added the 8%, I just thought we would be nice about it first, then if they got arsey about it we could do the court letter thing and then add the 8%. As it's not my account all aunt want at the mo is her PPI back, so do you think the letter's ok????

[dx100uk]

agreed
yep letter is good.
the only thing that strikes me is you getting it as a cheque
they might well take off the balance.

i dont think there is anything you can do abouthis.

dx

[birchave0]

Originally Posted by dx100uk

agreed
yep letter is good.
the only thing that strikes me is you getting it as a cheque
they might well take off the balance.

i dont think there is anything you can do abouthis.

dx

My aunt is in a position to settle to account in full, we need a settlement figure so she can close the account. We then expect the cheque for £750 as part settlement of the PPI. I would be nice to think they would give us a settlement figure minus the PPI but I don't think that will happen LOL!
After the £750 we'll be back for the rest

[dx100uk]

just as a side issue
did the Subject access request include a copy of the credit agreement?
and is it ok?

if it were unenforceable, then this would put you in a very strong position to off an extremely low F&F

dx

[birchave0]

Originally Posted by dx100uk

just as a side issue
did the Subject access request include a copy of the credit agreement?
and is it ok?

if it were unenforceable, then this would put you in a very strong position to off an extremely low F&F

dx

to tell you the truth I never thought of checking
the main thing was the PPI which I knew was worthless and basically a ripoff. I will have a look and maybe post it up, minus name, etc
thanks

[birchave0]

well my aunt sent the letter this week, fingers crossed we get a reply soon
as soon as I get time I will check out the agreement and if in any doubt will post up here for advice

[birchave0]

Well auntie received a bog standard sod off letter. Classic we did not miss sell the PPI, blah, blah, blah.

I have been through the agreement it all looks fine but one thing I have noticed is in their terms and conditions. It states that at any time she can cancel the PPI and the remaining money will be offset against the remaining balance of the loan. They do this as the PPI is paid up front at the start of the loan. She has 4 years remaining of a 7 year loan so by rights that 4 years worth of PPI if cancelled would reduce her loan by a bit.

I've advised her to write to them this week advising them that she wishes to cancel the PPI, as stated in their terms and conditions.
I've then told her to accept their goodwell offer of the £750 but to cross out the bit about she will not persue them again, etc. As it's a gesture of good will surely there should be no strings attached????

They should then come back with a new monthly payment for the remainder of the loan. We will then ask for a settlement figure and she can settle in full.

We are going to do it this way as she would like the loan paid off ASAP. I'm sure that we will be able to lodge a complaint with the fos along the way if we have any problems.

[dx100uk]

pers i would not do it that way, or p'haps take the goodwill as a partially offer & persue the rest.

what would be evenbetter would be to pay the loan off now , then get the ppi back afterwards, that way the money will go straight to her rather than off the bal.

just a thought

dx

[birchave0]

Originally Posted by dx100uk

pers i would not do it that way, or p'haps take the goodwill as a partially offer & persue the rest.

what would be evenbetter would be to pay the loan off now , then get the ppi back afterwards, that way the money will go straight to her rather than off the bal.

just a thought

dx

we have written and asked for the £750 to considered as a partial settlement but they have declined. The acceptance form is worded so if it is signed she cannot come back to them again regarding the PPI. We have asked for another settlement figure but they have not given us one yet. If it was me I would take them for everything but my auntie just wants everything cleared up. She has the funds from remortgaging to pay off in full which she would rather do then continue paying out £400 every month.

There is nothing to say we can't come back to this later. I currently have MBNA credit card, CO OP credit card, Barclaycard and another loan with Halifax to deal with for her, quite a bit!!!! If she can get the Lombard one of of the way for now it would be a big help

once the account is cleared we can always come back to it.

[birchave0]

bit of an update on this one.
As we got nowhere with Lombard my auntie cancelled the PPI. Now she has paid this loan since July 2006, it's over 7 years.

Ok guys, how does this work. On a fixed sum loan the PPI is paid up front, is that right? So when she cancelled what should have happened? Should all of the PPI refund be offset against the balance?

It's just she wrote to them again asking them to reopen her complaint, and including an article from the banking times about the FSA wanting banks to deal inhouse with PPI complaints.
All they've done is write back telling her they have refunded £1800 against her account, and they will not uphold her complaint, telling to contact the fos if not happy
They also said the offer of £750 is still there as a full and final settlement, but she has to sign the form saying she won't persue them again.

First of all I don't understand where the £1800 figure comes from, plus as the account was only one month in arrears (£450) how come they have taken all of the alleged refund? I'm really confused on this one

Anyone?????

[alanalana]

Originally Posted by birchave0

bit of an update on this one.
As we got nowhere with Lombard my auntie cancelled the PPI. Now she has paid this loan since July 2006, it's over 7 years.

Ok guys, how does this work. On a fixed sum loan the PPI is paid up front, is that right? So when she cancelled what should have happened? Should all of the PPI refund be offset against the balance?

It's just she wrote to them again asking them to reopen her complaint, and including an article from the banking times about the FSA wanting banks to deal inhouse with PPI complaints.
All they've done is write back telling her they have refunded £1800 against her account, and they will not uphold her complaint, telling to contact the fos if not happy
They also said the offer of £750 is still there as a full and final settlement, but she has to sign the form saying she won't persue them again.

First of all I don't understand where the £1800 figure comes from, plus as the account was only one month in arrears (£450) how come they have taken all of the alleged refund? I'm really confused on this one

Anyone?????

When the PPI was cancelled a pro rata refund should have been repaid directly by cheque.

Then if the PPI was mis-sold you should be claiming all of the monthly premiums paid (whatever they were for however many months) then add on 8% simple interest from the date the premium was paid up until they agree settlement so for example PPI monthly premium paid...

01 July 2007 £28.00 should accrue 8% simple interest on £28.00 from 01 July until they agree a settlement figure whenever that is then follow this with all the other payments
01 Aug 2007 £28.00 up until settlement etc etc I hope you get the drift on this.

I believe the only time the PPI refund can be offset against the balance is if the account is in arrears or perhaps on a Debt Management Plan.

Example I had a joint loan with spouse with PPI added. I paid the premiums for xx months and then the loan was refinanced to my spouse only. Then spouse ends up on DMP but when this happened no sign of any PPI refund so recently just claimed and I got a cheque back for over £3.5k and spouse gets a £3.8k reduction in the amount of arrears owed on the DMP and all of this due to a thought that old loans and credit cards transferred to a Debt Management Plan should still be able to recover mis-sold PPI and it works. My guess is if companies have consumers in difficulties on paying and a DMP is set up you will probably see the PPI automatically cancelled with no sign of any rebate as it is cancelled. How good would that go down with the FSA?

aa

[birchave0]

quick update on this, Lombard are now getting quite @rsey, they have refunded £1800 against the account for the PPI, but they now claim she is 2 months in arrears so they have defaulted her!!!

WTF???? She owed 2 months payments of £350, so around £700, the £1800 would have actually put her in credit with her monthly payments.

She is going to ring them today, demand a final settlement figure and a complete breakdown of how they have applied the PPI refund to the account.

I think once this is paid off we will go to the Ombudsman with it. She has already written to them including a copy of the FSA report on how banks need to deal with all of the PPI complaints inhouse, and not pass them straight on the the fos. They totally ignored the content and wrote back saying they would not uphold her complaint.

I think the sooner this is paid off the better, then we can go for the miss sold PPI through the fos.