Miss sold PPI because of Pre med Condition

countyexcile

Hi

Some advice needed please re PPI sold by Lloyds TSB.

I refinanced a loan in October 07 having gone into my branch to pay some money off my Credit Card balance, I ended up walking out about 2 hours later having added 6K to my personal loan that totalled 25K. Figure excluding PPI.

I had informed the person selling the loan I was currently off work sick and had been off since September I also informed them I was awaiting some tests to find out what was the cause of my illness. Several months later and still off work down to half pay and my SSP (sick pay) about to run out I went back into the branch to explain I would have difficulty in meeting the repayments. They rang the insurance claims department from the branch but they stated pre medical condition therefore not able to help, the branch then tried to put my loan onto my mortgage but thankfully very annoyed I refused and went away writing a letter of complaint to my branch manager.

I then went to see the branch manager at his invitation and agreed that I would wait to see what would happen as somebody from the insurance call centre had rang and said I may be covered under previous insurance. I sent off my completed claims form in February and in mid March I was diagnosed with a cancer that meant I had months of chemotherapy and now going through radiotherapy. I rang the claims company in March to inform them of my diagnosis.

In August I received confirmation that 18K would be written off my loan covering the previous sum but they could not pay off the balance in full as the loan was refinanced with a pre existing medical condition and therefore I now owe over 6K despite meeting the £420 monthly D/D payments each month.

It may be a case of bun, cherry and penny however I feel very angry because had I known that refinancing the loan and taking out the expensive PPI would mean I could not claim on grounds of pre-existing medical condition I would not have taken out the loan. I had no idea I had cancer when I took the loan and was expecting to be back at work soon. It took doctors and consultants over six months to diagnose the problem.

I have received a final letter from Lloyds stating that I can take this to the ombudsman but they had paid 18K off under the terms of the previous loan. They also state that when I refinanced the loan in October “I received an insurance premium rebate of 3K which was deducted from the total you would need to early settle your loan*. They also stated that I could cancel my PPI at any time if I so require but I’m not sure what to do!

Do you think I have a case trying to claim back the PPI I’ve paid on the 6K loan on the grounds of miss selling the cover? The bank themselves seems to be treating the loans as two separate items.

Should I cancel the PPI?

Finally I have been offered money to pay the loan off from a family member? If I paid off the loan early would this affect my case in trying to claim back any of the PPI?

Many thanks

CE

di3004

countyexcile wrote: »

Hi

Some advice needed please re PPI sold by Lloyds TSB.

I refinanced a loan in October 07 having gone into my branch to pay some money off my Credit Card balance, I ended up walking out about 2 hours later having added 6K to my personal loan that totalled 25K. Figure excluding PPI.

I had informed the person selling the loan I was currently off work sick and had been off since September I also informed them I was awaiting some tests to find out what was the cause of my illness. Several months later and still off work down to half pay and my SSP (sick pay) about to run out I went back into the branch to explain I would have difficulty in meeting the repayments. They rang the insurance claims department from the branch but they stated pre medical condition therefore not able to help, the branch then tried to put my loan onto my mortgage but thankfully very annoyed I refused and went away writing a letter of complaint to my branch manager.

I then went to see the branch manager at his invitation and agreed that I would wait to see what would happen as somebody from the insurance call centre had rang and said I may be covered under previous insurance. I sent off my completed claims form in February and in mid March I was diagnosed with a cancer that meant I had months of chemotherapy and now going through radiotherapy. I rang the claims company in March to inform them of my diagnosis.

In August I received confirmation that 18K would be written off my loan covering the previous sum but they could not pay off the balance in full as the loan was refinanced with a pre existing medical condition and therefore I now owe over 6K despite meeting the £420 monthly D/D payments each month.

It may be a case of bun, cherry and penny however I feel very angry because had I known that refinancing the loan and taking out the expensive PPI would mean I could not claim on grounds of pre-existing medical condition I would not have taken out the loan. I had no idea I had cancer when I took the loan and was expecting to be back at work soon. It took doctors and consultants over six months to diagnose the problem.

I have received a final letter from Lloyds stating that I can take this to the ombudsman but they had paid 18K off under the terms of the previous loan. They also state that when I refinanced the loan in October “I received an insurance premium rebate of 3K which was deducted from the total you would need to early settle your loan*. They also stated that I could cancel my PPI at any time if I so require but I’m not sure what to do!

Do you think I have a case trying to claim back the PPI I’ve paid on the 6K loan on the grounds of miss selling the cover? The bank themselves seems to be treating the loans as two separate items.

Should I cancel the PPI?

Finally I have been offered money to pay the loan off from a family member? If I paid off the loan early would this affect my case in trying to claim back any of the PPI?

Many thanks

CE

Hi there CE

You can still cancel the PPI and when successful you will receive back every penny of the PPI, because I am sure the FOS will see you have a strong case here anyway.

They have just thought of everything to try to fob you off and we all get these letters, so if this was the final decision letter I would now then complain to the FOS here
http://www.financial-ombudsman.org.uk/consumer/complaints.htm
There is a complaint form on that above link.;)

Send all copies of correspondence to back your case to the FOS along with your complaint form.

And please do you think you could copy and paste your post on the reclaiming discussion (PPI) thread here:
http://forums.moneysavingexpert.com/showthread.html?p=15020339#post15020339
Here you will receive further guidance.;) (above link).

I was thinking, why don't you contact Lloyds to request copies of written breakdown, they should provide this free to charge and besides they still mis sold to you.

But hun, you still have a good case and do not let their letter put you off.

Please keep us posted hun and thanks.

Di.
x

petermb_2

I sincerely believe that in such a case, please do not simply let the lender off by trying to get your premium back. I would certainly go for the loan amount itself. The fact that single premium ppi exists on the loan means that you can challenge.

I know there are those that have the opinion that it is immoral to challenge a loan. "You borrowed it so you must pay it". My view is to the contrary. If you are going to rip people off by selling useless, overpriced insurance understand that you may ultimately pay the price for corporate greed.