Advice on loan/PPI needed please

Pantheon_2

Hello everybody, I would appreciate any advice that you could give me about a loan, and PPI, taken out with LloydsTSB, in late 2001.

It’s a long-winded one, really sorry, but I’ve split it in two to try and make sense of it. First the history, and then the points I’m hoping somebody might be able to help me with. Thank you in advance. Please be nice to me, I’m new here.

Ok, deep breath, just talking about this time in my life upsets me.
Single man, I had a bank loan, but it was not a problem. I had no mortgage, no car, no dependents, and managed my money well, the repayments were well within my means. Then sometime in early 2001 that all changed. My mental health deteriorated to eventually the point where I just did not leave the house. I managed to keep up my repayments until my employer, of course, stopped paying me my SSP. Along with this, I was also showing one of the symptoms of depression, erratic overspending, and a huge increase in alcohol consumption. By late 2001 my mind had un-ravelled and the stuff hit the fan. (This is a very brief summary, I hope it doesn’t sound flippant, but it’s a lot more complicated than solely a mental health illness, I was eventually diagnosed with thyroid disease.)

I made an appointment to see my bank manager at the local Lloyds branch, to explain the situation, as I was at this point penniless and buying groceries on my credit card. I explained everything to her including that I was no longer able to make my loan repayments. I asked her for advice, and somehow, within minutes I had a new loan complete with PPI, paying off the existing one, and a little extra on top to keep me going. Needless to say, I could not go back to work, and not long after this, my family literally jumped in and rescued me from what was a very dangerous situation. I lost my job, my flat, my friends, and was still thousands of pounds in debt, with no way of paying it back. I was told that I could not use the PPI because it was an existing medical condition

Now, I could easily have walked away from this, Lloyds had no idea where I was, but it was my debt, and I take responsibility for that. So, almost eight years later, still ill, I have been paying back to a debt recovery agency every month, and yet still owe over £1500 more than the original loan was for. I think this is probably due to non-payment charges etc.

Again, I’m sorry for rambling, I just wanted to tell my story to see if my questions are relevant.

The advice I’m looking for is for the following questions:

• At the time of my meeting with the bank manager, would my PPI on the original loan have been activated after not having been able to work for six months?
• Would I have any grounds to claim that the PPI sold to me for the loan was irresponsible?, especially as she was aware of my medical condition.
• Would I have any grounds to claim that the loan itself was irresponsible?, again due to my medical condition.
• Am I able to claim back for the charges added to my loan and credit card debts?
• If I am able to claim, who would I claim from, the bank or the lovely debt recovery agents?

Thank you for taking the time to read this, and any advice would be genuinely appreciated, even if it to say I have no grounds etc., I know it was a long time ago, but this is something I live with every day. If I could claim for even part of it then I might be able to put together enough to pay the reduced amount that the debt people say they would accept as full repayment.

David x

petermb_2

It sounds to me as though you have grounds to claim for mis-selling.
However, As the loan is back in 2001 I would suggest that you get the agreement looked at for other issues also. You could well challenge the loan itself under the right circumstances

Pantheon_2

Thanks for your reply petermb, it is much appreciated.

I do have a copy here of the original agreement, as well as paperwork from the bank, dating to 2003, when I contacted them to try and sort things out. They returned my letter claiming that they had no knowledge of me.

Can I ask you please, what in the agreement should I look for, that might bring to light any of the other issues you mentioned?

Thanks

David

di3004

Pantheon wrote: »

Hello everybody, I would appreciate any advice that you could give me about a loan, and PPI, taken out with LloydsTSB, in late 2001.

It’s a long-winded one, really sorry, but I’ve split it in two to try and make sense of it. First the history, and then the points I’m hoping somebody might be able to help me with. Thank you in advance. Please be nice to me, I’m new here.

Ok, deep breath, just talking about this time in my life upsets me.
Single man, I had a bank loan, but it was not a problem. I had no mortgage, no car, no dependents, and managed my money well, the repayments were well within my means. Then sometime in early 2001 that all changed. My mental health deteriorated to eventually the point where I just did not leave the house. I managed to keep up my repayments until my employer, of course, stopped paying me my SSP. Along with this, I was also showing one of the symptoms of depression, erratic overspending, and a huge increase in alcohol consumption. By late 2001 my mind had un-ravelled and the stuff hit the fan. (This is a very brief summary, I hope it doesn’t sound flippant, but it’s a lot more complicated than solely a mental health illness, I was eventually diagnosed with thyroid disease.)

I made an appointment to see my bank manager at the local Lloyds branch, to explain the situation, as I was at this point penniless and buying groceries on my credit card. I explained everything to her including that I was no longer able to make my loan repayments. I asked her for advice, and somehow, within minutes I had a new loan complete with PPI, paying off the existing one, and a little extra on top to keep me going. Needless to say, I could not go back to work, and not long after this, my family literally jumped in and rescued me from what was a very dangerous situation. I lost my job, my flat, my friends, and was still thousands of pounds in debt, with no way of paying it back. I was told that I could not use the PPI because it was an existing medical condition

Now, I could easily have walked away from this, Lloyds had no idea where I was, but it was my debt, and I take responsibility for that. So, almost eight years later, still ill, I have been paying back to a debt recovery agency every month, and yet still owe over £1500 more than the original loan was for. I think this is probably due to non-payment charges etc.

Again, I’m sorry for rambling, I just wanted to tell my story to see if my questions are relevant.

The advice I’m looking for is for the following questions:

• At the time of my meeting with the bank manager, would my PPI on the original loan have been activated after not having been able to work for six months?
• Would I have any grounds to claim that the PPI sold to me for the loan was irresponsible?, especially as she was aware of my medical condition.
• Would I have any grounds to claim that the loan itself was irresponsible?, again due to my medical condition.
• Am I able to claim back for the charges added to my loan and credit card debts?
• If I am able to claim, who would I claim from, the bank or the lovely debt recovery agents?

Thank you for taking the time to read this, and any advice would be genuinely appreciated, even if it to say I have no grounds etc., I know it was a long time ago, but this is something I live with every day. If I could claim for even part of it then I might be able to put together enough to pay the reduced amount that the debt people say they would accept as full repayment.

David x

Hi there David and welcome.

Reading your post I feel you should complain and get a reclaiming letter into these.

I have a few cases ongoing with these at present and would like to add that there is also a PPI reclaiming-discussion thread here where you will receive further advice and guidance where to take your complaint from here.

Here is the link below, so if you could possibly copy and paste your thread over to the mentioned link we will all gather to help in any way we can, templates etc and so on.;)

http://forums.moneysavingexpert.com/showthread.html?t=862067&page=569

Hope to see you there and I agree with Peter, its a case of that you were mis sold. So lets get the ball rolling shall we ?;)

Cheers
Di.
x

Pantheon_2

Hi Di

Thanks for the welcome, and the encouragement.
Please bear with me, as I'm a little technology-challenged, but am trying to work out how to paste to the thread you suggested.

Thank you

David