Ppi

GHewitt

I had a loan from Lloyds Tsb for £25,000 in September 2005. I was quite happy paying the loan payments, then they started to be more every month, I assume that this is due to the insurance. I was unaware that I had insurance really, but I obviously did sign for it at the time. I have since had to get a copy of the details of the insurance from the company that Lloyds use as I had only a basic summary given to me at the time in 2005, and had received nothing else. On reading the policy, it covers me for 120 months which is the loan term and covers me for accident and sickness, not unemployment. The main problem is that i am not sure if the cover will help me in severe disablement or permanent disability, ie, critical illness. The maximum insurance will pay for 36 months full monthly instalments for the disability and then no more will be paid until the nominated person has returned to work for at least six consecutive months. Therefore if I was permanently disabled I could not claim. I did have insurance at the time which covered me for death, and critical illness of which was written into the agreement policy as "we are unsure of the exisiting cover that is held which is to be reviewed". I still have critical illness cover for my outgoings although I have since changed to a different company.

I do feel that at the time I was not REALLY advised about the insurance, although I must have been as I signed the agreement. I was told only the amount of loan instalment and no mention was made of the instalment without PPI. I am rather concerned that I do not have complete cover with my loan, although I have it elsewhere.

I am not sure if I am allowed to reclaim or not, but when I wrote to London & Edinburgh for a copy of the documentation it was noted on the letter, " They would point out that the offer to return the documentation, if the cover is not suitable, is no longer applicable as this refers to the period directly after the policy inception date." What does this mean? Sorry to have waffled but I have had lots of problems with the TsB over many occasions, with some ending up with the Financial Omsbudman about mistakes they have made with my bank accounts, so I want to get this sorted as well if I am able.

Rafter

G,

The insurance won't be the reason for the increase. You must be on a variable rate loan which has increased in rate over time.

In order to reclaim your insurance you need to demonstrate that it was missold or that it was implied that the insurance was compulsory.

From your posting it sounds like the cover doesn't meet your needs but that you could have claimed within the wording of the policy both since 2005 and into the future.

I suggest your best option is to get a redemption statement for the loan to understand how much you still owe and whether you could get a better deal elsewhere. Someone else might be able to help with a miselling claim on the insurance.

Good luck

R.