Advice Urgently Req'd On Loan And Ppi Problem

zoejaneansell

I need some help for my boyfriend

He took out a graduate loan in oct 2006 and took out a ppi (for once actually sold to him properly!) incase he had any trouble abroad or trouble getting work when he got bk

Last summer I helped him with his finances and suggested getting rid of his PPI as he was paying through the nose for it. He went into LLoyds and was told that was fine to do and got him to sign the paperwork

He has only found out today that actually what they have done is cancelled his graduate loan and put him onto a personal loan for another 5 yrs and a interest rate much higher!!!

He was NEVER told this would happen and lloyds t+c say you CAN cancel the ppi after 30 days so he didnt think anything of it at the time and sign the paperwork

What can he do about it???? they are saying he should have looked over the paperwork 1st but at no point was he told his loan would have to change!

PLEASE HELP - WE A TRYING TO GET A MORTAGE AND THIS IS GOING TO SET US BACK LOADS

:eek: :eek: thanks

standupguy

You may find this difficult as he has signed a new agreement and should have read it before he signed it.

That said, when a customer cancels PPI, the FSA has instructed Banks that customers should not be worse off if asked to sign a new agreement.

In this case your bf is worse off.

It may be worth him putting in a written complaint to the bank - there is always then the possibilty of taking the complaint to the Financial Ombudsman service if he is not satisfied with their final response to the complaint.

zoejaneansell

He is meeting with the bank tomorrow s that has been helpful thankyou standupguy