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Cancelling LLoydsTSB LPI?
AnnOyed
Posts: 13 Forumite
Sorry to anyone who's read this in the loans section already but it's been suggested I try posting here:
Took out a LloydsTSB loan 15 months ago. I queried the ppi but was told I could cancel at any time so accepted it. I'm taking a pay cut in January so have tried to cancel it but i'm not happy with proceedings. I've been given conflicting information and being told it's recalculated in ways i'm not happy with. Roughly speaking the monthly payment is £400. £300 cash loan + £100 ppi. I thought cancelling the ppi would make the monthly payment £300 a month but apparently not. Looking at my agreement it says:
"1.4 If you choose to purchase the LPI, we will pay any LPI loan directly to the insurer to cover the price of the premium. If you decide to cancel the LPI policy the LPI loan will be cancelled. The cash loan will continue and we will collect only the monthly repayment for the cash loan."
Now, my interpretation of that is there's no recalculations, no rebates, no reference to any other information to which i've seen or been told about. I'm arguing that if it's not in the agreement or referred to in the agreement then it's not valid! Is it worth me pursuing this?! All I want to do is knock the LPI off!!
Took out a LloydsTSB loan 15 months ago. I queried the ppi but was told I could cancel at any time so accepted it. I'm taking a pay cut in January so have tried to cancel it but i'm not happy with proceedings. I've been given conflicting information and being told it's recalculated in ways i'm not happy with. Roughly speaking the monthly payment is £400. £300 cash loan + £100 ppi. I thought cancelling the ppi would make the monthly payment £300 a month but apparently not. Looking at my agreement it says:
"1.4 If you choose to purchase the LPI, we will pay any LPI loan directly to the insurer to cover the price of the premium. If you decide to cancel the LPI policy the LPI loan will be cancelled. The cash loan will continue and we will collect only the monthly repayment for the cash loan."
Now, my interpretation of that is there's no recalculations, no rebates, no reference to any other information to which i've seen or been told about. I'm arguing that if it's not in the agreement or referred to in the agreement then it's not valid! Is it worth me pursuing this?! All I want to do is knock the LPI off!!
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Comments
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Hi, it was me that suggested posting it on here.;)
As this was a single premium it would work like this and I think I can explain it to you or at least have a go.
Your single premium PPI is a policy that is paid for up front by way of a loan. This would then go onto your credit agreement as another loan headed as LPI. By this time its actually treated just like a loan and nothing less. You then pay this loan along with your original loan in one payment.
"1.4 If you choose to purchase the LPI, we will pay any LPI loan directly to the insurer to cover the price of the premium. If you decide to cancel the LPI policy the LPI loan will be cancelled. The cash loan will continue and we will collect only the monthly repayment for the cash loan."
Most often in cases like this when you cancel your PPI your premium is cancelled but you continue to pay the interest that was on the loan to pay for your PPI.
This is how it usually works but I have edited now as yours says that your LPI LOAN will be cancelled so in effect you should continue ONLY with the actual loan repayment like you say. I would contact your bank to answer as to why your repayments would not reduce to the take effect that the "loan" to pay for your LPI is no longer payable.
If you take a look through the reclaiming guide here
http://www.moneysavingexpert.com/reclaim/
it may help to see if you feel all this was explained to you properly and see if you feel it was missold in any way.
If you want any help along the way just give us a shout.0 -
I have to say this is a first where in the terms and conditions it states that the "LPI loan will be cancelled if you cancel the LPI" as usually this is not the case.
Reading it again I wonder if the cancellation term whereby the "loan LPI" is cancelled means if you cancel immediately within the 30 day (if you had a 30 day cancellation period???) cancellation period and the otherwise terms "where you still owe the interest due (or most of it) if you cancel outside the cancellation period????
Please post back and let us know what the bank says. This will be interesting to find out.0 -
There's nothing in my agreement that says to cancel the LPI it has to be within the 30 day period so I'm sure it's for the life of the loan. There's also no mention of the cash loan monthly repayment changing or the term which is what they're trying to do!
Anyway, the plot thickens!! I've received a letter today thats says they've cancelled the LPI but i'll still be paying the full loan amount per month but over a shorter period!!! Hello, that's what i'm NOT WANTING TO DO!! Hence the FOS complaint! I was told I would receive paperwork to say how they refinance with new figures but I said I wouldn't agree and wouldn't sign it! They've gone ahead and changed it all and I've not signed a thing!!! I'm not so sure any of them are actually listening to my complaint and i'm sick of being told 'thats how we do it!!' but now they've gone ahead and done it anyway!!0 -
There's nothing in my agreement that says to cancel the LPI it has to be within the 30 day period so I'm sure it's for the life of the loan. There's also no mention of the cash loan monthly repayment changing or the term which is what they're trying to do!
Anyway, the plot thickens!! I've received a letter today thats says they've cancelled the LPI but i'll still be paying the full loan amount per month but over a shorter period!!! Hello, that's what i'm NOT WANTING TO DO!! Hence the FOS complaint! I was told I would receive paperwork to say how they refinance with new figures but I said I wouldn't agree and wouldn't sign it! They've gone ahead and changed it all and I've not signed a thing!!! I'm not so sure any of them are actually listening to my complaint and i'm sick of being told 'thats how we do it!!' but now they've gone ahead and done it anyway!!
Blimey, what are they playing at?:eek:
May I ask if you have requested a subject access request (SAR) for this?
http://forums.moneysavingexpert.com/showthread.html?t=1475553
Where all info and communication/transcripts should be enclosed.
Honestly, this just isn't on!!The one and only "Dizzy Di"
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I'm thinking that they've misunderstood a phone conversation where i've told them I want to cancel the LPI. Every call or branch visit i've clearly stated I want the £x LPI payment dropping but continue the £y cash loan repayment continuing over the remaining term (45 months) They've increased the cash payment, decreased the term to 36 months and are to credit £2k rebate into my bank account!!
I've not requested an SAR but I think it's time I did! The stress is really getting to me now and I keep booking time off work for phone calls, visits etc so need to take a deep breath and come out fighting for round 2!!0 -
I'm thinking that they've misunderstood a phone conversation where i've told them I want to cancel the LPI. Every call or branch visit i've clearly stated I want the £x LPI payment dropping but continue the £y cash loan repayment continuing over the remaining term (45 months) They've increased the cash payment, decreased the term to 36 months and are to credit £2k rebate into my bank account!!
I've not requested an SAR but I think it's time I did! The stress is really getting to me now and I keep booking time off work for phone calls, visits etc so need to take a deep breath and come out fighting for round 2!!
Hope this gets sorted out very soon.
Yes a SAR should be a good idea, fingers crossed, and stay strong, you will get there.:beer:The one and only "Dizzy Di"0 -
Any updates on this? I'll be interested to know what happened as this is the exact same problem i have?0
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It's been a long 12 months but finally got a positive result. I'm receiving full repayment of any LPI paid plus interest, maybe a little extra to say sorry but i'm not holding my breath on that! I doubt the cheque will come any time soon but when it does the beers are on me!!!0
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It's been a long 12 months but finally got a positive result. I'm receiving full repayment of any LPI paid plus interest, maybe a little extra to say sorry but i'm not holding my breath on that! I doubt the cheque will come any time soon but when it does the beers are on me!!!
Great news and well done!:beer:The one and only "Dizzy Di"0
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