How to deal with "goodwill payments"

[Pondfish]

INSERT FOR REFERENCE PURPOSES ONLY

 

The initial posts in this thread have been moved from HERE at the request of several users.

 

Some posts further down may not appear to run concurrently or may seem slightly confused because of this.

 

Now you know....

 

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Hi guys,

 

Sorry to drone on about this but i'm not clear about how to deal with the £750 refund Lloyds made to me prior to submitting my claim.

I am going to submit a schedule of charges including the 8% interest. I am not claiming contractual interest (did not get my head around how to work this out!).

 

Can anyone advise the correct method of dealing with this payment which i have rejected as full payment?

 

i have seen the following advice on various threads:-

1. deduct the £750-00 from the most recent charges - to minimise the loss in interest claimed.

2. divide the £750-00 equally between all the charges listed (£750 / 76=£9.86 reduction against each charge). Interest recalculated accordingly

3. divide the £750-00 equally between all the charges listed (£750 / 76=£9.86 reduction against each charge). Still claim the original amount of interest as Lloyds have had use of all this money.

 

Also, if the advice favours deducting an equal amount against each charge, should i also attach a copy of the original charges for ref?

 

Please can someone help to clarify the best response here, don't want to give Lloyds any excuses at this stage!

 

Thanks

 

Pondfish

[TANZARELLI]

Have sent you another pm will send it again but did this morning. At work til about 10pm so will do it then when get home.

 

Tanz

[Pondfish]

Can anyone else offer advice on my prevoius post?

 

Pondfish

[BARTY]

Hi

I read this on one of the other threads and it seems the right option to me:

"remove £750 of the newest charges and the interest related to these charges"

 

Barty:)

[TANZARELLI]

Pondfish,

 

My method was from a very reliable source and it meand you get to keep the interest as it was before the deduction from individual charges. All you then need to do is to work out the total of charges total left after deduction and then do the daily rate calculation ie charges x 0.00022

 

The daily rate o interest is usually a lower amount than the amount calculated from each charge from the date of offence.

 

Its up to you, if your not sure then perhaps you need to PM a MOD for advice.

[shazza26]

hi

 

I dont know if this will help you or not but i had the same problem and was advised by several people to deduct the £750 from the latest charges, there was no mention about including it in your particals of claim.

 

It seems to be the easiest option but at the end of the day it is your descision

[Pondfish]

Thanks Tanz and shazza26!

 

Tanz i have taken your advice and sent a PM to mjanet to see if the mods agree.

i'll let you know if i get an answer

 

Pondfish

[TANZARELLI]

No probs,

 

I don't know if theres a right or wrong way however you would have to do one or the other or they would argue that £750 had been repaid. I suppose the other option would be to send them a cheque back for £750 in a refusal of settlement letter and file as you were going to before, but not sure if this would be useful or the right thing to do.

 

Good luck anyway I'm sure the mods will provide the info you require.

 

Tanz

[bill-k]

I don't know if this will help or make matters worse But I was recently working on a spreadsheet which BF had asked Vampiress to create. It was for this very purpose, I believe.

There is a working, but not completely tested version in existence, but the main point about it is that it was made very clear to me that the earlier payment has to be deducted from the earliest charges, and the interest thereon. "Must mitigate losses" was the reason given, which I assume means that it must work to the banks advantage, and not ours. This appears to have been BF's directive, although I didn't speak to him (I do occasionally in prayer).

Just passing it on, that's all......

[bill-k]

Blimey, where did MJanet go ? Am I sitting on her ? Pardon me, madam !!

[TANZARELLI]

See what I mean Bill, how many methods are floating about. This is definately one which needs some solid clarification on.

 

Perhaps Bankfodder may like to comment just for clarifications sake??

 

Tanz

[photoman]

IMHO

Whe you take out a loan with a Bank or other, your initial payments are ALWAYS allocated towards paying of interest first before the actual loan itself. It is not until you reach the end of the term of the loan that you start to repay the capital. Perhaps any such payments should be allocated in same way?

[bill-k]

See what I mean Bill, how many methods are floating about. This is definately one which needs some solid clarification on.

 

Perhaps Bankfodder may like to comment just for clarifications sake??

 

Tanz

I shall fast and meditate, then pray to him tonight.

Probably be a bit quicker if I have a word in Vamp's shell-like !!

 

[cue cathedral echo & big organ:o ] :-

I shall return........................................whooosh!....................

 

[photoman]

Bill k

Just bumping this comment, as the pages had overlapped, and hoped you would see this, and comment?

 

IMHO

Whe you take out a loan with a Bank or other, your initial payments are ALWAYS allocated towards paying of interest first before the actual loan itself. It is not until you reach the end of the term of the loan that you start to repay the capital. Perhaps any such payments should be allocated in same way?

[TANZARELLI]

Hope you don't mind this Pondfish, just thought if I posted your link to another we might get some definative answers to your uncertainty with regards to that £750 spanner in the works payment LTSB have been chucking out.

 

Tanz

[Pondfish]

Wow,

some serious debate has been happening since my last pleas for help yesterday - or was it this morning? This stuff gets addictive

 

No probs Tanz, glad to get a few comments. The method you used looked good, but i guess deducting the earliest charges is the method less likely to be challenged by LTSB - as they would be comparitively quids in.

 

Still no definative answer, could it be that BF could be called on to help out a lowly Pondfish?

[GuidoT]

Just to add, I thought if claiming statutory interest the best and simplest way is to deduct from the latest charges and then this maximises the interest you can recover.

 

The esteemed Michael Browne agreed with me too (see post 33).

http://www.consumeractiongroup.co.uk/forum/lloyds-bank/48781-sb-lloyds-2.html

 

I would show your calculations on your schedule so that at settlement stages they do not get deducted twice.

 

I would not get too hung up about this matter at all, just get your claim to the next stage.

 

The goodwill payment and the filing of my Lloyds claim crossed, therefore my claim is overstated. Lloyds should have picked this point up in their defence but unsurprisingly they did not. Eventually it will come out in the wash.

[bill-k]

I've asked Vamp and am awaiting reply (nothing 'til sundown, I'm afraid).

 

Photoman - thanks for that - I'll pass that to Vamp as well. Although if that is the accepted "protocol" then she shouldn't need it pointing out.

 

Maybe this is a bit like the statutory/contractual weigh-up. Do we go for the easy route and settle for less, or the bumpy road with the higher reward ?

 

Guido - I'll have a look at that link as well, and maybe take that across to Vamp. She's a bit busy at work ATM, so is a bit "thin on the ground" here ATM

[Pondfish]

Hi GuidoT,

 

Yes these threads started my dithering!

I noticed a range of different methods being used, and did not want to proceed down the wrong track. You are i guess probably right, none of this will probably get examined too deeply unless Lloyds decide to turn up at court (and pigs start to fly).

Still i would be gutted if they managed to stall or compromise my claim because i didn't take time to find out the correct way to proceed. I really want them to have to pay for the hardship they have caused me and my family over the last couple of years.

 

(Rant over now - feel better again)

[bill-k]

I've sent Photoman's and Michael's posts to Vamp, now, so we'll just have to wait, I guess.

[Pondfish]

Bill-K,

Thanks for the insight! You certainly move in dizzy circles. Why didn't i think of Vamp?

I await sundown with anticipation

 

Pondfish

[photoman]

Okay, Had a cup of tea and a think on this. I remember having conversations with people at loans companies about why my loans never seemed to getting any smaller, ie: sometimes the monthly interest you paid was almost as high as the monthly payment you had made, and the loans never seemed to go down. Recieved explanation much along lines of my previous posting, ie payments made were alllocated against the interest first before the capital of the loan.

So, I've just logged onto my google sheets (Vamp's Compounded Contractual) and simply entered the figure of £750 as a negative figure at the bottom of column E (interest on charges), (this you could date, and maybe give title "payment on account" when do it for real).

The sheet seems to cope fine, and just takes the payment off the total interest figure at top, and then continues to calculate daily interest when you change the dates.

If you took the £750 off the total of the charges instead, it would mean that interest from that point on would be significantly less (and could even be negative, if your initial total of charges was less than £750) !

 

Subject to Vamp's superior views, I think this approach works.

[bill-k]

I'll pass that on to Vamp as well, Photoman, if I may. Provided the method of taking the payment from the accrued interest is an acceptable method, that certainly makes sense to me !! Unfortunately, if this an OK way of doing it, it turns my last 2 spreadies into bin jobs.

 

You sod !!

[Pondfish]

Hi Photoman,

Unfortunately i struggled to get my head around how to work out the contractual interest on my charges so opted for the statutary interest at 8% only. Would your last method work on the simpler spreadie offered from the Vaults?

Pondfish

[Michael Browne]

Subject to Vamp's superior views, I think this approach works.

Seems a good approach, but this for contractual, which you are claiming from the beginning, so makes no difference when they offer you the £750.

 

With statutory, if they offer before you file, then surely you have to take the £750 off your charges and any related 8% that you were going to claim for once you file and therefore you take off the newest charges thus losing the least amount of s69 8%.