PPI Reclaiming Discussion part 4

Rodeopig

Hi all,

Thought it might be useful to share my experience so far and if anybody has any advice they feel might help me I would be very grateful.

PPI with Lloyds TSB. Took out a graduate loan for 8k in Sept 2007 with insurance contract for a "one off" premium of £2,117.54 plus interest. The guy who dealt with the loan stated that "it would improve my credit rating by taking the PPI and the loans department would not accept my loan without insurance".

Contacted Lloyds in Sept 2009 by letter to request a copy of my insurance documents which came back within a week. Further letter to Lloyds in late Sept 09 asking to cancel my PPI and a full refund of premium paid to date. I had no reply at all, so sent another letter. Again no reply. Finally getting annoyed, I telephoned Lloyds on 12th Nov 09 and they then cancelled the PPI. In order to do this, they had to settle my loan and issue a new loan. They assured me I would have a response to my complaint within 4 wks. Nothing.

Received a letter dated 1st Dec stating they had not reached a descision, apologies for the delay and if I was unhappy I should contact the FOS.

Next letter dated 9th Dec- very lengthy so will try to summarise:

Your Concern

"You have stated the seller led you to believe the policy was compulsory

My Findings
Lloyds TSB did not lead customers to believe that the insurance was compulsory or that the application for credit would be compromised in the absence of cover. Lloyds TSB thorough its processes, practices and documents took steps to ensure the customer was fully aware of the optional nature of the cover.
.......letter continues with policy summary quotes....
You signed the agreement confirming tht you wished to be bound by the terms of the agreement.

A box was seperately ticked confirming that you wished to be bound by the terms of the agreement.

You signed the loan agreement seperately to confirm that you wished to purchase the loan protection insurance.

In view of the above, I am afraid that in absence of any further information from you, I will have no alternative other than to reject your complaint.

Decision

When you settled your loan on 20/11/09 you received a net rebate on your Loan Protection Insurance for £584.54.

When you bought the policy it was explained to you that this rebate was based on a sliding scale due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a more favourable rebate on a pro-rata basis as a gesture of goodwill on this occasion.

A pro rata rebate would have amounted to £1,187.49.

We would like to offer the difference of £602.95.

You should be aware that this is our final response and as such your complaint will now be closed. In the event that you do not accept the offer then should you wish to do so, you have the right to refer your complaint to FOS".


It does seem interesting that they are rejecting my complaint but still offering some money back. I have been a loyal Lloyds customer for 16 years and I feel totally ripped off by them!

marshallka

Rodeopig wrote: »

Hi all,

Thought it might be useful to share my experience so far and if anybody has any advice they feel might help me I would be very grateful.

PPI with Lloyds TSB. Took out a graduate loan for 8k in Sept 2007 with insurance contract for a "one off" premium of £2,117.54 plus interest. The guy who dealt with the loan stated that "it would improve my credit rating by taking the PPI and the loans department would not accept my loan without insurance".

Contacted Lloyds in Sept 2009 by letter to request a copy of my insurance documents which came back within a week. Further letter to Lloyds in late Sept 09 asking to cancel my PPI and a full refund of premium paid to date. I had no reply at all, so sent another letter. Again no reply. Finally getting annoyed, I telephoned Lloyds on 12th Nov 09 and they then cancelled the PPI. In order to do this, they had to settle my loan and issue a new loan. They assured me I would have a response to my complaint within 4 wks. Nothing.

Received a letter dated 1st Dec stating they had not reached a descision, apologies for the delay and if I was unhappy I should contact the FOS.

Next letter dated 9th Dec- very lengthy so will try to summarise:

Your Concern

"You have stated the seller led you to believe the policy was compulsory

My Findings
Lloyds TSB did not lead customers to believe that the insurance was compulsory or that the application for credit would be compromised in the absence of cover. Lloyds TSB thorough its processes, practices and documents took steps to ensure the customer was fully aware of the optional nature of the cover.
.......letter continues with policy summary quotes....
You signed the agreement confirming tht you wished to be bound by the terms of the agreement.

A box was seperately ticked confirming that you wished to be bound by the terms of the agreement.

You signed the loan agreement seperately to confirm that you wished to purchase the loan protection insurance.

In view of the above, I am afraid that in absence of any further information from you, I will have no alternative other than to reject your complaint.

Decision

When you settled your loan on 20/11/09 you received a net rebate on your Loan Protection Insurance for £584.54.

When you bought the policy it was explained to you that this rebate was based on a sliding scale due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a more favourable rebate on a pro-rata basis as a gesture of goodwill on this occasion.

A pro rata rebate would have amounted to £1,187.49.

We would like to offer the difference of £602.95.

You should be aware that this is our final response and as such your complaint will now be closed. In the event that you do not accept the offer then should you wish to do so, you have the right to refer your complaint to FOS".


It does seem interesting that they are rejecting my complaint but still offering some money back. I have been a loyal Lloyds customer for 16 years and I feel totally ripped off by them!

Hi rodeopig, it seems they are just offering you an enhanced rebate against the Policy but this would not include interest charged. If you are not happy and want the full amount and interest (and 8% statutory interest too) and feel you have a good case then you should get the complaint to FOS.

[Deleted User]

tiggrae wrote: »

what was the term of the first loan and the term of the 2nd?

1st loan = 5 years
2nd loan = 7 years

jorcon3018

Hi,

I was mis sold PPI by Loans.co.uk back in 2005.

They did this by pre ticking the PPI box on the loan application (which was hidden in small print), and when i later queried this i was told i was too late, i had signed the form.

They then stated the PPI policy documents & right to cancel info was sent to me by post, so i should have cancelled then, but as you can guess no such documents were ever sent to me, and i never recieved the policy.

I complained to Loans.Co.UK, and they cancelled the PPI, but due to the silly cancellation rates, i would only receieve £10 per month rebate on a £90 per month policy, thus paying £80 per month for a policy i no longer had, and never requested to purchase in the first place.

As per usual, i didn't take it any further, as the loan company gave me the impression i had no action to take.

I've since seen your campaign, and was wondering whether i would be eligible to claim this back, as by my calculations i was sold a polciy for at least £3000 which i never asked for, and was fraudlently sold to me.

The loan which the PPI was againt was settled in full in November 2006, can i do anything.

Also, i don't have any details of the PPI policy, only the loan provider (Paragon) and broker (Loans.Co.UK)

Any advice would be appreciated.

Many Thanks

Richard

di3004

jorcon3018 wrote: »

Hi,

I was mis sold PPI by Loans.co.uk back in 2005.

They did this by pre ticking the PPI box on the loan application (which was hidden in small print), and when i later queried this i was told i was too late, i had signed the form.

They then stated the PPI policy documents & right to cancel info was sent to me by post, so i should have cancelled then, but as you can guess no such documents were ever sent to me, and i never recieved the policy.

I complained to Loans.Co.UK, and they cancelled the PPI, but due to the silly cancellation rates, i would only receieve £10 per month rebate on a £90 per month policy, thus paying £80 per month for a policy i no longer had, and never requested to purchase in the first place.

As per usual, i didn't take it any further, as the loan company gave me the impression i had no action to take.

I've since seen your campaign, and was wondering whether i would be eligible to claim this back, as by my calculations i was sold a polciy for at least £3000 which i never asked for, and was fraudlently sold to me.

The loan which the PPI was againt was settled in full in November 2006, can i do anything.

Also, i don't have any details of the PPI policy, only the loan provider (Paragon) and broker (Loans.Co.UK)

Any advice would be appreciated.

Many Thanks

Richard

Hi and welcome Richard

I would go for it, loans.co.uk were also fined for mis selling as from the date you have added.

So it was loans.co.uk that actually sold you the loan and the lender was Paragon?

Whoever sold you this is the ones you write to.

Check on this link below for more info with templates as well, a checklist of mis selling reasons etc, post by recorded delivery as this is your proof of posting.
Ask for help when required, good luck and please keep us posted.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

jorcon3018

Hello Di, and thanks for the reply.

It was Loans.co.uk that sold me a paragon loan, all the mis selling was done via Loans.co.uk, and not Paragon.

So going on what you said, do i go along the "you've been fined for mis selling" route, rather than the "you've mis- sold me" route.

Does it matter that the only info i have is the Paragon loan reference, what other info will i need to write a complain letter & register my claim.

Thanks again

Richard

di3004

jorcon3018 wrote: »

Hello Di, and thanks for the reply.

It was Loans.co.uk that sold me a paragon loan, all the mis selling was done via Loans.co.uk, and not Paragon.

So going on what you said, do i go along the "you've been fined for mis selling" route, rather than the "you've mis- sold me" route.

Does it matter that the only info i have is the Paragon loan reference, what other info will i need to write a complain letter & register my claim.

Thanks again

Richard

Hi Richard, yes do make a point of writing that in your letter as well, to make sure they don't try fobbing you off, along with any other reasons you may have, also as shown in the link I posted in my last post to you.;)

I think whatever occurs to you - you should write, it will be a stronger case, even though the business had been fined.
I used to think that PPI was all part of the loan, as I was never told any different.

jorcon3018

Thanks Di,

I'll write that letter asap & let you know how i get on.

My wife works in Finance, so i know all about PPI, even recall clear as day telling Loans.co.uk that i didn't want or need PPI, yet they smuggled it on the acceptance form, was a tiny box which had been pre ticked, liked those ones you un-tick when you don't want to recieve promotional telephone calls etc.

Hence i didn't see the pre ticked bit, signed the form & was conned :-(

You live & learn i suppose.

Thanks for all your help, i'll keep you all updated with my progress.

Rich

di3004

jorcon3018 wrote: »

Thanks Di,

I'll write that letter asap & let you know how i get on.

My wife works in Finance, so i know all about PPI, even recall clear as day telling Loans.co.uk that i didn't want or need PPI, yet they smuggled it on the acceptance form, was a tiny box which had been pre ticked, liked those ones you un-tick when you don't want to recieve promotional telephone calls etc.

Hence i didn't see the pre ticked bit, signed the form & was conned :-(

You live & learn i suppose.

Thanks for all your help, i'll keep you all updated with my progress.

Rich

With pleasure Richard.

You do have a strong case here and know what your doing as well, good one.:T:T
Keep at them, and look forward to hearing the outcome.:beer:

Di

jorcon3018

Hi Di,

I've come accross my first issue, Loans.co.uk are in administration & Money Expert have bought their website. Just rang the number for them, they answered money expert & said all i can do i write to the FSA who will hear my complaint.

What shall i do, as i doubt i can get my money back from a company in administration.

Many Thanks

Richard