Can I reclaim Loan Protection Insurance?

melorablack

Just a quick question...how did you get the loan if you were unemployed? Did you tell them you were unemployed? I wouldn't be surprised if their records show you were working at the time because I thought it would be really difficult to get a loan if you aren't earning anything?

Money_Lawyer

Debtworry wrote: »

Hi Everyone,

I took out a loan with my bank LloydsTSB in June 2004, the loan amount was £4600, i was unemployed at the time with depression, and yet was still convinced to take out the Insurance on the loan, the loan was for 60 months and my last payment was May this year, i never missed any payments.

This morning i receibed a statement regarding the loan and i paid £1050 in insurance, now correct me if i'm wrong but the insurance was void was it not? i've i was unemployed when i took the loan out and remained unemployed then obviously i couldn't claim on insurance unless i passed away?

Any info regarding this appreciated :j

You should be entitled to reclaim the PPI, interest and the naughty secret commission. It would be very interesting to see the Statement of Needs document they are obliged to complete. I would be suprised if you do not receive payment of some sort eventually. I mean, how can they sell you a policy you could never claim on!!!

We are receiving claims with scenarios that beggar belief and so you are not alone.

Debtworry_2

melorablack wrote: »

Just a quick question...how did you get the loan if you were unemployed? Did you tell them you were unemployed? I wouldn't be surprised if their records show you were working at the time because I thought it would be really difficult to get a loan if you aren't earning anything?

They knew i was unemployed, never hid anything from them

They even gave me a CC that i'm paying back £20 a month on through one of the pay plan company's

Money_Lawyer

People are fighting back. I suggest you seek help ASAP. You may even find out that not only was the PPI mis-sold, but it may have even rendered the APR on the total loan as being incorrect. This would render the loan unenforceable (but NOT void at this time). In otherwords, they could NEVER enforce the loan against you via a court as they would have breached one of the Prescribed terms in Consumer Credit Act 1974 . As per the case of Southern Pacific Loans v Michael Walker heard at Chester recently. Slightly different circumstances BUT the underlying fact was the APR being miscalculated and the loan was unenforceable meaning the possession order for the house could not be enforced. The grey area is whether they can assign the debt to a third party (debt collector) and register non-payments to the credit agencies like they threaten to do. This is a concern to you. The case mentioned is on appeal by the Claimant (Southern Pacific Loans) who in my opinion will lose.

If the loan is unenforceable, then you should be able to secure the services of a lawyer as they will be getting paid from the defendant due to the complexity of the law.

If the courts (as we are hoping) do provide some clarity regarding third party assignments and credit agencies, then the banks have some hefty payments to make and I'm going to be a busy chap.

Good luck

melorablack

Money_Lawyer wrote: »

You should be entitled to reclaim the PPI, interest and the naughty secret commission. It would be very interesting to see the Statement of Needs document they are obliged to complete. I would be suprised if you do not receive payment of some sort eventually. I mean, how can they sell you a policy you could never claim on!!!

We are receiving claims with scenarios that beggar belief and so you are not alone.

They didn't need to complete a Statement of Demands and Needs before 14th January 2005 (FSA) and the OP's loan was taken out in 2004.

Debtworry_2

Another letter received this morning, this time it basically says that they have passed my complaint to the insurance side, and they will look into it, and it may take a while.

Only reason i add to this thread is to make sure i'm doing it right, as i've never claimed anything before

marshallka

Debtworry wrote: »

Another letter received this morning, this time it basically says that they have passed my complaint to the insurance side, and they will look into it, and it may take a while.

Only reason i add to this thread is to make sure i'm doing it right, as i've never claimed anything before

It seems like you are doing it right. You have to give the firm 8 weeks in all for a full and final response to your complaint and if after 8 weeks they have not done this then you can take the complaint to the FOS for them to look into. Also always send all your correspondence by recorded delivery.

Debtworry_2

marshallka wrote: »

It seems like you are doing it right. You have to give the firm 8 weeks in all for a full and final response to your complaint and if after 8 weeks they have not done this then you can take the complaint to the FOS for them to look into. Also always send all your correspondence by recorded delivery.

Thats good to hear, Thanks alot :j

Debtworry_2

Cant believe it :beer:

received a letter back this morning from Lloyds telling me they will pay back the full amount of PPI £1055. plus interest, they say they cant calculate interest at this time as the interest will be calculated at time of settlement.

If i wish to accept, to sign and return the acceptance slip, if not i can get the ombusman involoved.

But they are paying the full amount plus the 8% interest so that will do for me :T

Thanks everyone on here who helped :j

di3004

Debtworry wrote: »

Cant believe it :beer:

received a letter back this morning from Lloyds telling me they will pay back the full amount of PPI £1055. plus interest, they say they cant calculate interest at this time as the interest will be calculated at time of settlement.

If i wish to accept, to sign and return the acceptance slip, if not i can get the ombusman involoved.

But they are paying the full amount plus the 8% interest so that will do for me :T

Thanks everyone on here who helped :j

Wow, congratulations.:j:beer::j:T:T
Fantastic news, well done.
Please post your success on the above success thread as well if you want to, so pleased for you.:T:T