Mother In Law PPI (Pensioner)

fletch3163

Hello everyone

I'm now dissecting my MIL paperwork. She's about £4.5k in debt (loan, overdraft with Lloyds TSB). I've paid her arrears in mortgage, utilities, etc, cancelled all DD because she's getting charged exorbitant fees with Lloyds and I've opened a basic account for her pension to go in (not this month's because it was too late to redirect her pension :mad:)

Anyway, her loan (the second one she's had I believe) has PPI on it. Why would they sell her that? She's 70 years old and only gets pension money.

Thanks to this fabulous site I'm now going to fight Lloyds for the return of her PPI and I'll post on the charges site for help with that (they've robbed her blind, it's so sad. 'Even went to the extreme of charging her £25 per month for her account). My question is though, should I be asking in the same letter about possible PPI on her last loan. Can I do that? Am I able to apply a "big brush" and ask about her as a customer or do I need to ask about specific events (loans)?

Thanks in advance of any help.

di3004

fletch3163 wrote: »

Hello everyone

I'm now dissecting my MIL paperwork. She's about £4.5k in debt (loan, overdraft with Lloyds TSB). I've paid her arrears in mortgage, utilities, etc, cancelled all DD because she's getting charged exorbitant fees with Lloyds and I've opened a basic account for her pension to go in (not this month's because it was too late to redirect her pension :mad:)

Anyway, her loan (the second one she's had I believe) has PPI on it. Why would they sell her that? She's 70 years old and only gets pension money.

Thanks to this fabulous site I'm now going to fight Lloyds for the return of her PPI and I'll post on the charges site for help with that (they've robbed her blind, it's so sad. 'Even went to the extreme of charging her £25 per month for her account). My question is though, should I be asking in the same letter about possible PPI on her last loan. Can I do that? Am I able to apply a "big brush" and ask about her as a customer or do I need to ask about specific events (loans)?

Thanks in advance of any help.

Hi there

That is bad selling this to a pensioner, she was vulnerable bless her.

Yes got for the lot.;)

Anything she has with added PPI that should not have been sold to her I would definately go for it, she stands a very strong chance.

If you need any help, give us a yell, good luck.;)

fletch3163

di3004 wrote: »

Hi there

That is bad selling this to a pensioner, she was vulnerable bless her.

Yes got for the lot.;)

Anything she has with added PPI that should not have been sold to her I would definately go for it, she stands a very strong chance.

If you need any help, give us a yell, good luck.;)

Thanks for this, I appreciate it. I've sent the link for the first letter to work to print off tomorrow. I've read the summary and recommendations they gave her and it states (as a policy exclusion) "Because you are aged 65 or over your eligibility to benefits under the policy is limited to Critical Illness cover, Life and Hospitalisation covers and Postive Job Solutions. You will not be eligible for Unemployment cover or accident or sickness cover, and therefore this demand and need is not met"

Does this make a difference? My MIL is very definitely old school (finance being a dirty word) and I can just see her accepting this in order that she could just get the loan.

dunstonh

Does this make a difference?

Yes. It indicates that she was made aware of the limitations before deciding to purchase. Where the statement of demands and needs exists (a more recent development) then it is harder to get an upheld decision. Still not impossible, just harder.

fletch3163

At the very least can I cancel the LPI now? Although I read about everyone's financial issues on here, it's amazing how ill prepared I actually am.

di3004

fletch3163 wrote: »

Thanks for this, I appreciate it. I've sent the link for the first letter to work to print off tomorrow. I've read the summary and recommendations they gave her and it states (as a policy exclusion) "Because you are aged 65 or over your eligibility to benefits under the policy is limited to Critical Illness cover, Life and Hospitalisation covers and Postive Job Solutions. You will not be eligible for Unemployment cover or accident or sickness cover, and therefore this demand and need is not met"

Does this make a difference? My MIL is very definitely old school (finance being a dirty word) and I can just see her accepting this in order that she could just get the loan.

Hi there

I know every case can be different but the FOS when I was in this position, although not a pensioner lol, he stated that even though the policy states that I was also covered with job solutions and hospital cover etc, it was not fair to pay out on something that I would not be "fully covered for". It did go in my favour, and there was some other personal reasons as well, but I would still give it a go, I believe that if your mum in law was aware of all this at the time of taking this out, then her option if given one would have been to say no.
I take it they just automatically crossed for the cover and not your mum in laws tick?

Good luck.;)

fletch3163

Hi again

I haven't actually seen the application, just the paperwork after the event. I'm absolutely positive she didn't understand what she was doing. I know many people say that but honestly, she is so not savvy with money. I just know her eyes were focused on the objective of getting the funds, not what she had to cover for.

I plan to also ask for the hundreds upon hundreds of pounds they've charged her in unauthorised overdraft, returned DD, overdraft interest, etc she's paid for over the past 6 months. It's the most legal form of stealing I've ever seen

dunstonh

If it had been done before the days of the statement of demands and needs, it would be an easy complaint which would give an upheld decision. The statement of demands and needs means that they have checked eligibility first by asking her questions and have told her that certain parts will not apply but other parts will. They have followed this up in writing (with the statement). So, on paper, it doesnt look like a mis-sale and thats the problem. With most PPI sales, there is no information gathered at point of sale re eligibility and no statement of demands and needs issued.

My "guess"s will be that it will come down to an opinion on how many benefits she is covered for vs how many she isnt. If there are enough areas where it would pay out and only a few where it wouldnt then it will be rejected. Or if there are hardly any areas where she is covered then it will be upheld. I am basing that on other insurances that also have areas where you may or may not be covered depending on your circumstances and that is considered normal as long as you are aware of that. There would also be consideration on her age and ability to understand what she was doing. Age 70 doesnt really tell us anything as you have people that are senile by 50 and others that are really active and aware at 70. If she was mentally incapable of understanding then a complaint would be upheld. However, if she was mentally capable of understanding but just didnt say no, then there is little protection for that, if the product is right.... or right enough.

She obviously doesnt get the things she mentioned but if she is single with no financial dependants then that would be a good argument that the PPI was unnecessary....