Useless PPI?

BossiB

Hi, Been reading other posts regarding issues with PPI cover on loans, and now wondering if I have indeed made a big mistake - could someone enlighten me?
I took out a loan for 18000 in Aug 05 over 84mnths with Lloyds TSB in Aug 05, and after discussing my details with the 'advisor' also took out Loan Protection Insurance. This takes the form of another Loan on top. So the LPI cost is 4212, and with interest on top comes to 5213 payable.
I am, and was at the time, self-employed (have my own Ltd Co) and also have a IPP policy elsewhere, which was also current at the time.
All my bank accounts were with them at the time, including business so they knew my circustances, should I be looking to ditch this and get a refund?
Must point out, they have sort of covered themselves with the standard 'disclosure document' showing that it was not advice, just recommendation! Help.....

di3004

BossiB wrote: »

Hi, Been reading other posts regarding issues with PPI cover on loans, and now wondering if I have indeed made a big mistake - could someone enlighten me?
I took out a loan for 18000 in Aug 05 over 84mnths with Lloyds TSB in Aug 05, and after discussing my details with the 'advisor' also took out Loan Protection Insurance. This takes the form of another Loan on top. So the LPI cost is 4212, and with interest on top comes to 5213 payable.
I am, and was at the time, self-employed (have my own Ltd Co) and also have a IPP policy elsewhere, which was also current at the time.
All my bank accounts were with them at the time, including business so they knew my circustances, should I be looking to ditch this and get a refund?
Must point out, they have sort of covered themselves with the standard 'disclosure document' showing that it was not advice, just recommendation! Help.....

Hi there

If you feel you were mis sold this in any way then I would try to pursue on this.

There is a link for more info in regards of PPI mis selling, also check it out and along with your own reasons add that to your reclaim complaint letter.
There is a template letter on the site as well but I think these finance companies are used to the same style etc, but the template can help you but try to write in your own words if possible.

They have 8 weeks to respond in full, another letter maybe required if not successful first time round, or until you receive a final response, they will in the final response letter enclose a leaflet of the Financial ombudsman service (FOS) if your not happy with their decision, let us know if you require any further help from here. Good luck and post by recorded delivery.;)

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

I gather you still have some documents for your loan.
What about the policy booket/terms and conditions of the cover?

There is also an actual PPI thread for this matter, just click on loans then you will find mainly at the top of the page PPI reclaiming - discussion thread 4, where myself and other will be able to help as much as we can.

Now in regards to cancellation, they may suggest that you take another loan without the PPI, its well worth checking on how they deal with this as every company varies.;)

BossiB

Thanks for that, will check out and give it a go.

di3004

BossiB wrote: »

Thanks for that, will check out and give it a go.

Good luck to you, keep at them, if they fob you off, then write back to them.

I am a customer of Lloyds myself, and with my experience through complaints, they tend to send out a standard response first time round, this can be the usual for them, but hang in there, if you get nowhere with them on the final response, you always have the FOS to investigate this for you, free of charge, or there are other options where I'm sure others on here will be able to advise and help on those issues.

Fingers crossed.;)

Di

oscar52

PPI is not completely useless - its just massively overpriced with the banks and can be bought for a fraction of the cost from major insurars (sp?) and in some cases with alot fewer "get out clauses"

marshallka

oscar52 wrote: »

PPI is not completely useless - its just massively overpriced with the banks and can be bought for a fraction of the cost from major insurars (sp?) and in some cases with alot fewer "get out clauses"

From Martins himself here


Protect mortgage/loan payments

I’ve often ranted about Payment Protection Insurance (PPI), yet it's not the product but the mis-selling I hate. It's a simple idea: fall ill, suffer an accident or be sick and off work, and specific policies will pay your loan, credit card or mortgage payments for 12 months.

The usual problem is, when bought from lenders alongside the debt, it’s disgustingly, vilely and outrageously expensive; similar products from standalone providers like Paymentcare or British Insurance cost around a tenth of the price!
Thus, if you want the surety PPI provides, getting a standalone policy's a much better proposition. Always check terms are suitable though, and if you’ve ‘foreseeability’ of redundancy, i.e. you genuinely know lay-offs are coming your way, be aware the cover may be invalid.

There are other types of insurance products too, such as income protection insurance, which you may want to consider, though they’re beyond the scope of this website. The difficulty in such products is ensuring the cover will protect you when necessary and balancing up the payout scenario and level with the cost

maxdp

BossiB wrote: »

Hi, Been reading other posts regarding issues with PPI cover on loans, and now wondering if I have indeed made a big mistake - could someone enlighten me?
I took out a loan for 18000 in Aug 05 over 84mnths with Lloyds TSB in Aug 05, and after discussing my details with the 'advisor' also took out Loan Protection Insurance. This takes the form of another Loan on top. So the LPI cost is 4212, and with interest on top comes to 5213 payable.
I am, and was at the time, self-employed (have my own Ltd Co) and also have a IPP policy elsewhere, which was also current at the time.
All my bank accounts were with them at the time, including business so they knew my circustances, should I be looking to ditch this and get a refund?
Must point out, they have sort of covered themselves with the standard 'disclosure document' showing that it was not advice, just recommendation! Help.....

Hi Bossibi

I am claiming PPI back at mom from above and it has gone the legal route.

Can you say whether you had an overdraft at the time and also had PPI on this as well as PPI on everything else they sold you. Am just asking cause it will make a difference to your claims.

BossiB

oscar52 wrote: »

PPI is not completely useless - its just massively overpriced with the banks and can be bought for a fraction of the cost from major insurars (sp?) and in some cases with alot fewer "get out clauses"

Hi, You're absolutely right, wouldn't it be great if we had our own personal Legal/Financial advisor with us everywhere we go? Watch them squirm under scrutiny.....!! Thanks anyway.:rotfl:

BossiB

maxdp wrote: »

Hi Bossibi

I am claiming PPI back at mom from above and it has gone the legal route.

Can you say whether you had an overdraft at the time and also had PPI on this as well as PPI on everything else they sold you. Am just asking cause it will make a difference to your claims.

Hi,
No, nothing else at the time. Though, looking through the booklet that came with it at the time, they reckon they would pay out to a self-employed person (mmm), regards Health cover - looks like would have to get a tropical disease to be covered, nothing 'normal'. Only thing it seems ok for is if I had an accident.

Have to say the really annoying thing here is that they have packaged it as an extra Loan, so it can't be cancelled unless the main loan is cancelled - what a minefield.