Lloyds TSB PPI

Anne42

Hello everyone

I am new to this Forum and if there are already the answer to my questions on here in one form or another I do apologize, but I hope someone can help me.

In June 2007 I took out a loan with Lloyds TSB and the PPI offered. This loan paid off what was owed on an existing one and a little more for an up coming wedding. I borrowed 5602.41 over 60 month at a rate of 13.3%. this totals 7579.20. The PPI (also charged at 13.3% interest) brings the total amount owed to 9645.60.

The person I dealt with did not say that I have to take out the PPI in order to get the loan. She did say that it is better and safer. In case of illness or death I do not have to worry about how the loan is paid off.

I have got very generous sickness and death benefits with my employer so in case of my demise my now husband ( at the point I took out the loan we were only engaged) would not have to worry about finding the extra money to pay my loan of anyway. So I really don't think I need this PPI. When I realized this I have tried to cancel the policy but I was informed I cannot do this. I would have to take out a new loan.

I was very shocked to learn that I have the option of seeking out a different PPI provider. At no point did she point out that cover is available elsewhere. The way it was sold it was just their PPI or no PPI. Obviously not in those clear words. It was simply never hinted at or mentioned. Interest included brings the total coat of the PPI over 60 month to 2066.40. Quite steep on an original borrowing of 5602.41.

My questions/ worries are:

1) Do I have a case of mis-sold PPI or is it simply my fault for not asking the right questions at the meeting and then not reading through the agreement thoroughly and cancelling the PPI within the 30 days?

and the most important one

2) If I go ahead with my claim and it gets refused, can the bank inisist on me settling the outstanding balance in full, because with my complaint I said that I do not require the PPI. Can they insist I take out a new loan to pay off the old one and then I end up paying even more because of a higher interest rate. Or even worse insist I pay all now and refuse a new agreement?

Please help!
Many thanks in advance from a very nervous new Forum user.

di3004

Anne42 wrote: »

Hello everyone

I am new to this Forum and if there are already the answer to my questions on here in one form or another I do apologize, but I hope someone can help me.

In June 2007 I took out a loan with Lloyds TSB and the PPI offered. This loan paid off what was owed on an existing one and a little more for an up coming wedding. I borrowed 5602.41 over 60 month at a rate of 13.3%. this totals 7579.20. The PPI (also charged at 13.3% interest) brings the total amount owed to 9645.60.

The person I dealt with did not say that I have to take out the PPI in order to get the loan. She did say that it is better and safer. In case of illness or death I do not have to worry about how the loan is paid off.

I have got very generous sickness and death benefits with my employer so in case of my demise my now husband ( at the point I took out the loan we were only engaged) would not have to worry about finding the extra money to pay my loan of anyway. So I really don't think I need this PPI. When I realized this I have tried to cancel the policy but I was informed I cannot do this. I would have to take out a new loan.

I was very shocked to learn that I have the option of seeking out a different PPI provider. At no point did she point out that cover is available elsewhere. The way it was sold it was just their PPI or no PPI. Obviously not in those clear words. It was simply never hinted at or mentioned. Interest included brings the total coat of the PPI over 60 month to 2066.40. Quite steep on an original borrowing of 5602.41.

My questions/ worries are:

1) Do I have a case of mis-sold PPI or is it simply my fault for not asking the right questions at the meeting and then not reading through the agreement thoroughly and cancelling the PPI within the 30 days?

and the most important one

2) If I go ahead with my claim and it gets refused, can the bank inisist on me settling the outstanding balance in full, because with my complaint I said that I do not require the PPI. Can they insist I take out a new loan to pay off the old one and then I end up paying even more because of a higher interest rate. Or even worse insist I pay all now and refuse a new agreement?

Please help!
Many thanks in advance from a very nervous new Forum user.

Hi and welcome.

Yes its very possible you have a case here, this should have been fully explained to you, so please check this out here below, this is useful and there is also a letter reclaim template you can use as well, so add your own reasons for this complaint and anything you see on the info on the link that may also occur to you, they have 8 weeks to respond in full, post by recorded delivery, this is the best method in order to keep a check on the 8 weeks they have.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

They may write back first time by fobbing you off, but don't let that put you off, you can write back again and battle this out with them, I have a case in with the Financial ombudsman about these right now (FOS), if this is not successful they will tell you you have the opportunity to take this complaint to the FOS, they will also enclose the FOS leaflet, let us know and we can help you step by step, good luck.;)

Please also feel free to post on the actual PPI Reclaiming discussion thread, you will find this by clicking on loans first, then that thread will be at the top of the page.

Di
x

Anne42

Thank you Di,

However ,that does not answer my main concern. What is the worst case scenario if my claim is unseccessful? Is Lloyds within their rights to ask me to settle the outstanding amout in one lump sum? Can they enforce that I need to take out a new loan to cover the existing one without the PPI?

Thanks
A

di3004

Anne42 wrote: »

Thank you Di,

However ,that does not answer my main concern. What is the worst case scenario if my claim is unseccessful? Is Lloyds within their rights to ask me to settle the outstanding amout in one lump sum? Can they enforce that I need to take out a new loan to cover the existing one without the PPI?

Thanks
A

Hi Anne
Sorry to miss that bit.

You needn't worry about this hun, they will not expect you to settle the outstanding amount in one lump sum and will and should not even suggest this.

I know many have these worries, but this is not right they should do this.

I have been with Lloyds for over 17 years and between myself and my husband we have so far 3 complaints against these at the moment, and to be honest hun, they have been pretty good.;)

All finance companies seem to recommend their own cover, this is optional and should not be forced upon any customers to take this cover on, as there are also cheaper stand alone covers out there if you wanted to go for that instead of the companies own insurance.

Hope this helps.;)

You should also check the PPI reclaiming-discussion thread out, also the PPI success & failure thread which is next to the discussion one when you have time, you will note there are many complaining about LLoyds and some successful, some not but are taking it further with the financial ombudsman service who investigates these complaints for you, again all free of charge.;)

Di
x

Anne42

di3004 wrote: »

Hi Anne
Sorry to miss that bit.

You needn't worry about this hun, they will not expect you to settle the outstanding amount in one lump sum and will and should not even suggest this.

I know many have these worries, but this is not right they should do this.

I have been with Lloyds for over 17 years and between myself and my husband we have so far 3 complaints against these at the moment, and to be honest hun, they have been pretty good.;)

All finance companies seem to recommend their own cover, this is optional and should not be forced upon any customers to take this cover on, as there are also cheaper stand alone covers out there if you wanted to go for that instead of the companies own insurance.

Hope this helps.;)

You should also check the PPI reclaiming-discussion thread out, also the PPI success & failure thread which is next to the discussion one when you have time, you will note there are many complaining about LLoyds and some successful, some not but are taking it further with the financial ombudsman service who investigates these complaints for you, again all free of charge.;)

Di
x

You are a star Di. Thank you so much. Yuo really have put a big worry at ease. I will sit down and write the letter this weekend. I will of course keep you all updated.

Anne
xxx

di3004

Anne42 wrote: »

You are a star Di. Thank you so much. Yuo really have put a big worry at ease. I will sit down and write the letter this weekend. I will of course keep you all updated.

Anne
xxx

Not a problem Anne, your very welcome.:A .

Thanks for your PM as well.

We look forward to hearing the outcome of this as well, but keep at it, good luck.;)

Di
xxx