PPI Reclaiming Discussion part 4

marshallka

SimonWB wrote: »

Hi I've two issues relating to the PPI I have with two Lloyds loans I have.

Both my loans have PPI. Today I went to cancel the insurance to be told that although I can cancel the insurance it will make next to no impact on my repayment amount, £1 in the case of one of the loans.

In my loan agreements for both loans there is a grid stating relaying the "Key Financial Information" in this it states how much in total and each month I will be paying on the cash loan and how much I will be paying for the loan protection insurance (LPI).

However when I went to cancel the LPI today I was told that it is not simply the case that on cancelling the LPI the amount my loan agreement says I pay each month for the LPI is no longer paid, infact I'll be paying virtually the same/

On speaking to Lloyds (not in the branch as they couldn't help me and after spending over an hour being passed round various places I was first told that this was because Lloyds front load the policies to pay off the insurance first I was then told by another person in a call centre that this isn't in my Loan Agreement but in my LPI Policy Document.

In that is states:

"If you settle your loan early a refund of part of your premium may be paid, provided we have not paid a claim to you. The amount an insurer might have to pay in the event of a claim is greater at the beginning of a loan than at the end. This explains why a refund is not made on a pro-rata basis"

It seems to me totally unaceptable and to be blunt pretty deceptive for my loan agreement to state one thing and then have a clause hidden in the policy document of the LPI contradicting it. Is there anything I can do about this?

On top of this I feel one loan I feel I was mis sold. I was sold the loan during an account revue meeting with Lloyds when I was experiencing some financial issues and was desperately needing help. While being sold I was told that the repayment amount for the loan would be less if I took out the loan with insurance. Now this I see as a very basic case of mis selling and I intend to follow the process through to claim for mis selling but equally I want to do something about the very dodgy practices Lloyds have employed making it pointless for me to cancel this insurance.

What do you guys reckon?

It seems you have been had like the rest of use here. The PPI was actually a loan to pay the premium in one lump sum so it insurred interest for the full term of the loan. Once on the agreement it is the same as any other loan and is not really a PPI monthly payment as it would be treated as a loan and settled like a loan. ALthough you have cancelled this it has made no difference hardly to your repayments cause its a loan once you sign the agreement.

I would now make a complaint for any policies you have been sold saying you believe them to be missold and you did not know that these would incur interest etc and you give them 8 weeks for a full and final response to it. Single premiums are very costly and you should have been given a choice as to buying this and also explained to you that you would be purchasing them by way of a loan. There are template letters here and its also a guide to reclaiming,

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

I would make you own letter from the templates with your own reasons for the misselling if you are going this route and send everything recorded delivery too so you have proofs and keep copies.

Others may be along to post but seems to me that you did not really understand what you were buying here. Were you given a choice as well and were you told you could buy this elsewhere.

di3004

SimonWB wrote: »

Hi I've two issues relating to the PPI I have with two Lloyds loans I have.

Both my loans have PPI. Today I went to cancel the insurance to be told that although I can cancel the insurance it will make next to no impact on my repayment amount, £1 in the case of one of the loans.

In my loan agreements for both loans there is a grid stating relaying the "Key Financial Information" in this it states how much in total and each month I will be paying on the cash loan and how much I will be paying for the loan protection insurance (LPI).

However when I went to cancel the LPI today I was told that it is not simply the case that on cancelling the LPI the amount my loan agreement says I pay each month for the LPI is no longer paid, infact I'll be paying virtually the same/

On speaking to Lloyds (not in the branch as they couldn't help me and after spending over an hour being passed round various places I was first told that this was because Lloyds front load the policies to pay off the insurance first I was then told by another person in a call centre that this isn't in my Loan Agreement but in my LPI Policy Document.

In that is states:

"If you settle your loan early a refund of part of your premium may be paid, provided we have not paid a claim to you. The amount an insurer might have to pay in the event of a claim is greater at the beginning of a loan than at the end. This explains why a refund is not made on a pro-rata basis"

It seems to me totally unaceptable and to be blunt pretty deceptive for my loan agreement to state one thing and then have a clause hidden in the policy document of the LPI contradicting it. Is there anything I can do about this?

On top of this I feel one loan I feel I was mis sold. I was sold the loan during an account revue meeting with Lloyds when I was experiencing some financial issues and was desperately needing help. While being sold I was told that the repayment amount for the loan would be less if I took out the loan with insurance. Now this I see as a very basic case of mis selling and I intend to follow the process through to claim for mis selling but equally I want to do something about the very dodgy practices Lloyds have employed making it pointless for me to cancel this insurance.

What do you guys reckon?

Hi there;)

What years did you take out the loans with Lloyds TSB?

The reason why I am asking is because I believe they have stopped selling the PPI within the loan, or if your loan was taken out a certain year (I will have to check the year on this), then you would be paying on the PPI separate to the loan, unless I have mis read this somewhere along the lines.
However, normally to what I know of, if you want to cancel after the cooling period, they do suggest in taking out a new loan to pay off the existing loan, and the new loan would not include PPI.
If you do this make sure they offer the same rate to the existing loan or better.

I would if you believe you were mis sold, complain in writing (keep everthing in writing) they have 8 weeks in full to respond, you need to keep on at them until they resolve this in your favour, or until you receive the final response which should give the details of the financial ombudsman service (FOS), you can take your complaint to the FOS if your not happy with the final decision.

If your complaing on the 2 loan ppi, then write the 2 account numbers on the same letter.

For more information, here is the link to useful guidelines of ppi rclaiming and template letters to help you, then write your own reasons, if you can though try to use your own words and use the templates as a guide.
Post all letters by recorded delivery.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Good luck with this and please keep us posted and ask for help when required.;)

di3004

oops sorry Marshallka I was too slow again lol ;)

marshallka

di3004 wrote: »

oops sorry Marshallka I was too slow again lol ;)

Glad you posted too Di cause i know you know LLoyds.

di3004

marshallka wrote: »

Glad you posted too Di cause i know you know LLoyds.

Cheers Marshallka, they are a right pain in the you know what.

I found an another old agreement the other day and found the letter as well, when we paid the 7 year loan off early in 2004, they sent a letter to inform us that as we paid a lot earlier we should expect to receive a part refund of the PPI, it was only because I found that letter I went through all the online banking statements to check if they did ever pay in a refund, no they didn't.

I will post this up later if I can or tomorrow.;)

Why ever why I have not dealt with this then I do not know, but because its an old letter its only now i am sorting it, don't know where we will stand in this case, because no claim was ever made and then we thought ppi was all part of the loan as well, so it looks like another reclaim.

di3004

Here is the old letter we found in the loft about the loan taken out in 2004, it was paid off in Nov 2005, it was that of a 7 year loan........


Mr & Mrs XXXXX

30th November 2005

YOUR LLOYDS TSB ACCOUNT NUMBER XXXXXXXXXXX

This is to let you know that as you have made the final payment on your personal loan, we have now closed this account.

As you have repaid your loan earlier than the expected end date, you may be entitled to a refund of part of your Loan Protection Insurance Premium. If this is the case, Lloyds TSB will contact you separately.

We will cancel your direct debit arrangement straight away. If you have been making your repayments by standing order, you need to contact your bank immediately to make sure they cancel the agreement.

Thank you very much for choosing Lloyds TSB for your loan.
If there is anything we can help with in the future, please call us and we'd be pleased to help.

Yours sincerely
Service Delivery Manager.
.................................................................................................



Just been online banking with Lloyds and went back to when the loan was paid in, it was £10K paid in at the end of Dec 2004, it worked out that the first repayment was the 1st of every month, but the first repayment was that of Feb, it was the way it worked out at the time.

So the monthly repayments were that of £188.80 a month in total.

They taken 188.90 X 9 months = £1,699.20 in repayments from Feb to beginning of November 2005.

Then to settle it was £9,676.45, that was settled on 22 November, so in total the loan paid out was that of =
£11,375.65

I have went through all the statements and cannot see anything in regard of a refund, and no ppi claims were ever made, for sickness/unemployment etc.

mcbain123

Hi,
My husband had PPI on an Egg credit card he bought online in 2003 (from memory). He had the PPI as the box was pre-ticked and he didn't realise it what it was. He's since cancelled the PPI and we've sent an inital letter to Egg, who responded by telling him that they would not pay and he should to go to the FOS if he wanted to complain further.
My question is - should we try and write to Egg a second time, telling them they are being unfair etc, or should we go straight to the FOS. Has anyone else had a similar experience to this?
Thanks!

marshallka

mcbain123 wrote: »

Hi,
My husband had PPI on an Egg credit card he bought online in 2003 (from memory). He had the PPI as the box was pre-ticked and he didn't realise it what it was. He's since cancelled the PPI and we've sent an inital letter to Egg, who responded by telling him that they would not pay and he should to go to the FOS if he wanted to complain further.
My question is - should we try and write to Egg a second time, telling them they are being unfair etc, or should we go straight to the FOS. Has anyone else had a similar experience to this?
Thanks!

If Egg have given you their final response then they would probably not reply again so best to go straight to FOS. You would have to ring FOS and read out the letter maybe to see if they will accept this as a final response first to make sure. Perhaps then write to Egg and say you have now passed over to FOS also.

maxdp

If a complaint at FOS goes from Adjudicator to Ombudsman to consider can you refresh my memory as to how long this usually takes before you hear back. Ta

pinknico

Hello Max, mine took 1 week to be passed over and the Ombudsman took 2 weeks to find in my favour.xx