www.iva.co.uk

Hi all, I have been chasing Lloyds TSB for about 6 months regarding PPI on a loan I had with them, they have finally accepted that I was mis sold the policy and haqve offered me nearly £2000 in compensation, however, they said they will keep it towards the outstanding loan which is in my IVA, I asked my IP if this would make any difference to payments etc, I was told it wouldn't, but if I could get them to send me the cheque I could get to keep about £500.
Any thoughts if it is worth trying to get them to send it?

Hi,

I am also going through this process but to be honest all that will happen is that they will reduce what you owe them. I do not think you would get anything sent to you but good luck trying

Hi
Certainly worth trying, not sure if they have to do this but in a sense if they keep the refund they are preferring themselves over other creditors.
I would challenge them and state that you will take it to the banking ombudsman for a decision.
Regards

thanks Andy, i can only try, rayb, keep on at them, they fobbed me off 3 times, i asked them to produce the tape recording of me agreeing to the PPI, they couldn't so they admitted mis selling. Good luck

Hi Ricbro,

Will keep going with mine - as you said they are fobbing me off but I have a dispute going with the Financial Ombudsman Service at the moment (being going almost a year) so you never know.

Keep us posted with what happens with yours!!!

It's only when you get in this situation (mine anyway) that you actually realise exactly what, and how much you are paying out. I didn't go into detail as I was desperate to borrow money, sad but true.

Presumably their claim includes an element of the mis-sold policy, so they are probably right to reduce their claim as they would have had to pay out to the insurance company in the first place?

In reality they have had an extra dividend because the total amount including the ppi would have been in the iva proposal. Could the IP not redistribute the IVA payments so that the total IVa payments + £2,000 are worked out pro rata and Lloyds TSB get £2,000 less from the iva then the windfall is shared between all creditors.

I don't know how they are working it, all I can do is write to them to explain the situation fully and see if they will play ball, that way all the creditors get a little bit more with the possibility of a couple of quid for myself, one can only hope (and write)

Let us know how you get on ricbro. It will be useful information for posters on here in a similar position.

Yes - the dividend should be adjusted if the bank's claim is reduced as a result of the returned money.

Thanks Melanie, I think my suggestionwas abit long winded but at least you knew what I meant.

I thought you put it over rather well.

Thank you Melanie [:I]

I have written a nice letter to Lloydstsb today explaining to them the error of their ways, I have said that I am in a legally binding IVA to which they, as one of my creditors, agreed to and as such the refunded PPI should be sent to me to forward to my IP, or sent direct to my IP then it can be divided between all creditors, I said I didn't think it was fair if they had it all and would seem like they were being favoured above the others.
We will see.