LloydsTSB

Sock_Monkey_2

Hi,

I am a long time lurker, and minimal poster but I really hope you might be able to provide some advice on a situation my partner is currently in relating to PPI (or PPL as LloydsTSB call it). We are currently trying to reclaim the front loaded PPL as we believe it was mis-sold in the first place, however I am concerned that we may have damaged our case with our second letter to LTSB. I will try and keep things as brief as possible but sorry for the waffling, hope it makes sense:

My OH originally approached LloydsTSB for a joint loan with his then wife in June 2006 but the advisor at their branch told him his wife was not a suitable candidate due to a lack of credit rating (she had not had much credit in the past and not built up any record) and he should take out the loan individually instead. They took the banks advice on it and did not put her name on the agreement even though it meant a higher overall interest rate as the total loan was now over the amount of his annual salary (I am not sure how this all worked, but this is what he has explained to me). At this point it was implied that because he was now on his own as an applicant taking out the PPI policy would assist the credit application being successful. The salesperson was also very pushy in selling the policy to them, focusing on the fact that the loan was now solely in his name so that they felt compelled to take it out to make sure that the loan went through.

My OH split with his wife in November 2007 and contacted the bank to try and cancel the PPI policy as he was having trouble making the repayments alone. After following the banks initial advice he was solely liable because they had not put his wifes name on the loan despite it being a joint debt – sigh, that’s another rant. At a meeting at the local branch he was told that the policy could not be cancelled without re-financing the entire of the loan. At the time it was never explained to him how this worked and that is was standard procedure (something we have only recently learned). He believed that this would mean a new credit check and a new loan incorporating the full settlement figure and further interest upon this. As such he believed that the PPL could not be cancelled and the advisor he met with led him to believe that he had to continue as he was which he did until this year when he decided enough was enough.

This is the basis of our initial complaint, and when we sent this off we got a standard letter rejecting the complaint, but also saying they could find no record of him contacting the bank to cancel the PPL. We wrote back explaining it was a face to face meeting and enclosing a copy of the card he was given at the meeting and explaining a little further about it all. We also mentioned that he was told he could not cancel without refinancing. It was only after this we learned this was standard and did not involve a brand new loan as explained above. I am really worried that this will cause us problems when we go to the ombudsman as he could have cancelled the PPL at this meeting, but just did not understand the process and the advisor did not make it clear.

We have copies of his credit agreement now, but at the time he and his wife split she took all the paperwork and so when he visited the bank he explained that he could not look at the T’s and C’s so had to rely on their advice. We have since got hold of copies and can now see how the loan was linked to the PPL. We have also pointed out that there is a section included in the paperwork that should have been signed by the advisor who sold the PPL to confirm that it was sold in his best interests, this has not been signed by anyone.

We sent the second letter twice but have not received any response from the bank and we are now preparing to go to the ombudsman but with everything that has gone on, we are worried that the fact he could have cancelled the PPL might cause us problems. He has just arranged for the policy to be cancelled from now on so we are looking for a refund of the premiums already paid. Does anyone have any advice on what to say on the forms and how we can move forward now we have seemingly made the situation more complex.

Thanks in advance

SM

di3004

Sock_Monkey wrote: »

Hi,

I am a long time lurker, and minimal poster but I really hope you might be able to provide some advice on a situation my partner is currently in relating to PPI (or PPL as LloydsTSB call it). We are currently trying to reclaim the front loaded PPL as we believe it was mis-sold in the first place, however I am concerned that we may have damaged our case with our second letter to LTSB. I will try and keep things as brief as possible but sorry for the waffling, hope it makes sense:

My OH originally approached LloydsTSB for a joint loan with his then wife in June 2006 but the advisor at their branch told him his wife was not a suitable candidate due to a lack of credit rating (she had not had much credit in the past and not built up any record) and he should take out the loan individually instead. They took the banks advice on it and did not put her name on the agreement even though it meant a higher overall interest rate as the total loan was now over the amount of his annual salary (I am not sure how this all worked, but this is what he has explained to me). At this point it was implied that because he was now on his own as an applicant taking out the PPI policy would assist the credit application being successful. The salesperson was also very pushy in selling the policy to them, focusing on the fact that the loan was now solely in his name so that they felt compelled to take it out to make sure that the loan went through.

My OH split with his wife in November 2007 and contacted the bank to try and cancel the PPI policy as he was having trouble making the repayments alone. After following the banks initial advice he was solely liable because they had not put his wifes name on the loan despite it being a joint debt – sigh, that’s another rant. At a meeting at the local branch he was told that the policy could not be cancelled without re-financing the entire of the loan. At the time it was never explained to him how this worked and that is was standard procedure (something we have only recently learned). He believed that this would mean a new credit check and a new loan incorporating the full settlement figure and further interest upon this. As such he believed that the PPL could not be cancelled and the advisor he met with led him to believe that he had to continue as he was which he did until this year when he decided enough was enough.

This is the basis of our initial complaint, and when we sent this off we got a standard letter rejecting the complaint, but also saying they could find no record of him contacting the bank to cancel the PPL. We wrote back explaining it was a face to face meeting and enclosing a copy of the card he was given at the meeting and explaining a little further about it all. We also mentioned that he was told he could not cancel without refinancing. It was only after this we learned this was standard and did not involve a brand new loan as explained above. I am really worried that this will cause us problems when we go to the ombudsman as he could have cancelled the PPL at this meeting, but just did not understand the process and the advisor did not make it clear.

We have copies of his credit agreement now, but at the time he and his wife split she took all the paperwork and so when he visited the bank he explained that he could not look at the T’s and C’s so had to rely on their advice. We have since got hold of copies and can now see how the loan was linked to the PPL. We have also pointed out that there is a section included in the paperwork that should have been signed by the advisor who sold the PPL to confirm that it was sold in his best interests, this has not been signed by anyone.

We sent the second letter twice but have not received any response from the bank and we are now preparing to go to the ombudsman but with everything that has gone on, we are worried that the fact he could have cancelled the PPL might cause us problems. He has just arranged for the policy to be cancelled from now on so we are looking for a refund of the premiums already paid. Does anyone have any advice on what to say on the forms and how we can move forward now we have seemingly made the situation more complex.

Thanks in advance

SM

Hi there hun

You just keep at them, the FOS will look at 2 sides and with what you explained above I see you do have a good explanation here so try not to worry about that.


I would move on to the FOS without waiting for a response now to be honest and also enclose a copy of the complaints form to send to lloyds.

I posted a thread about these yesterday on the above Reclaiming discussion thread that LLoyds and Northern Rock are the worst culprits, where they tend to reject the main of the customers complaints and it seems these may be possibly named and shamed later this year.

I feel you have a good case and just recently I won a case with these, yet through the FOS and so did hubby, both on Credit Card PPI, but I feel this will work in your favour, as the FOS know how this company works.;)

Basically I would explain it how you have to us, if you need separate paper to add your info on do that as well, the way you have explained this its easy to understand what your stating here and the FOS will obviously see it this way as well, enclose any copies of correspondence from lloyds and also tell them the timescales of 8 weeks have passed and you heard nothing more on your complaint.

Just give us a yell anytime hun, its looking good already, so good luck.

Di
X

Sock_Monkey_2

Hi Di,

Thanks so much. I was just getting worried that there were so many strands to this starting to unravel that it might make things too complicated. We will be sending everything off to the Ombudsman in the next week or so and I will keep you updated on things.

Its's good to know that you think we have a reasonable case, sometimes it's hard to tell when you are in the middle of everything and you have made me feel much more positive on it all. I guess we will just keep plugging away till we get a results one way or another.

Right, now back to the slightly more pressing issue of organising to move house! Sometimes there is just too much going on ;-)

Thanks again

SM

di3004

Sock_Monkey wrote: »

Hi Di,

Thanks so much. I was just getting worried that there were so many strands to this starting to unravel that it might make things too complicated. We will be sending everything off to the Ombudsman in the next week or so and I will keep you updated on things.

Its's good to know that you think we have a reasonable case, sometimes it's hard to tell when you are in the middle of everything and you have made me feel much more positive on it all. I guess we will just keep plugging away till we get a results one way or another.

Right, now back to the slightly more pressing issue of organising to move house! Sometimes there is just too much going on ;-)

Thanks again

SM

Hi hun and with pleasure.:A

You just keep at them hun, I tell you the FOS know how this company works now.;)

Your very busy then hun and yes I can understand that everything seems too much to deal with in one go, good luck there as well hun.

Yes please do keep us posted and post up anytime for any help if required, anytime.
Fingers crossed.

Di
X

coldbeans

Hi - read the detail regarding canx the PPL we have had the same issue with Lloydds. They tried to talk my husband into taking out basically a new loan over the phone and sent the paperwork etc. I hit the roof when he told me the premiums as I assumed that he had reduced the term but they basically said that to cancel the PPL he would have to finish the loan and that means either payment in full or a new loan at higher interest which meant the premiums were actually only about £2 cheaper PM than what we were already paying with the PPL.

Obviously we decided against refinancing as we would have less chance of getting our money back etc.

We have since then complained and recvd last week an offer letter which we have accepted and got back our premium plus interest + 8% so please don't give up. And you are not mad they most likely did mean for you to refinance as when I got my husband to challenge them further on the phone they could not / would not answer the specific questions regarding the difference in interest etc etc and they would not talk to me even with his permission.

Good luck

Emma