LTSB PPI claim advice

mrjack

Hello,

In 2006 I have taken out a loan from LTSB for £5000. I have also "opted" for the PPI policy, which has almost been forced onto me with sales talk. However, I cannot remember the exact content of the conversation. The total cost of loan was around £6500 (with PPI) paying £120 per month, of which around £20 is for PPI.

Last month, I have decided to get a new car, so I thought I would extend my loan for this instead of using the dealer's finance. Going through various options with the bank's sales person, we have settled on £15000 loan over 7 years, for £322 per month. The settlement figure for the original loan was £4800 after 2 years! I had not thought about PPI, but have been told that this would be "transferred" from my original loan onto this one. I thought that since it was to be transferred, I would not have to pay anything extra.

Today was my first payment for the loan and, to my surprise, the actual loan repayment amount is only £265-ish with a separate PPI payment taken at £57!

Considering, I haven't claimed for my original loan and the fact that I did not think I would have to pay anything extra to have PPI on this loan and especially not the fact that it would cost me £57 less(!), do I have a case to completely cancel the PPI policy? It has been over a month now, so I guess I cannot "cancel" it the normal way, but have to go via complaints and inevitably FOS to reclaim any monies for it?

The sales person was aware that I had life/unemployment/sickness protection with Scottish Widows through my company but had neglected to say that this would cost me extra and the fact that I don't really need PPI!

Thoughts?

Cheers.

mrjack

I have drafted the following letter to LTSB. Please submit your thoughts on it.
----
Dear Sir or Madam,

Account numbers:
- xxxx (now settled)
- yyyy

I purchased a PPI policy from you in 2006 but now believe that I was mis-sold this policy on two occasions.

My first loan (account number xxxx) was opened with a PPI policy after significant pressure from the sales person on the phone. I was made to believe that the PPI policy was mandatory, even though it obviously was not. This took my original loan amount from £5000 to around £6500. Monthly payments were £120 and taken from my bank account in one lump.

In May 2009, I was called in by my local Lloyds TSB branch (address in the header of this letter) to have an “overview” of my accounts. During the meeting, a sales person has suggested that it would benefit me to open a new loan account while taking into consideration my new car purchase. The loan amount was decided at £15000, which would amount to monthly payments of £322.

It was explained to me that my PPI policy would be “transferred” from my old loan to the new one. Considering that my settlement figure for a £5000 loan was at a staggering £4600 after 2 years of solid repayments, I had assumed that the policy would be free of charge on the new loan and that a monthly repayment figure of £322 was just to repay the new loan. So, I had essentially repaid the cost of a PPI policy in 2 years, which I had no use for and have not made any claims on it.

Upon checking my accounts, it was observed that the loan repayment amount is only £265, with an additional £57 taken for the PPI policy. At no point, during the meeting, was it explained to me that this “transferred” PPI policy would cost me an extra £57 per month.

Additionally, I have explained to the sales person that I already had life, unemployment, sickness and death protection via my company where I work, which should have been taken into consideration while “transferring” my PPI policy.

In actual fact, the PPI policy had not been transferred but was simply sold a new one without my knowledge.

Unless you can satisfactorily justify to me that both policies (mis) sold to me were fair and reasonable, I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

di3004

mrjack wrote: »

Hello,

In 2006 I have taken out a loan from LTSB for £5000. I have also "opted" for the PPI policy, which has almost been forced onto me with sales talk. However, I cannot remember the exact content of the conversation. The total cost of loan was around £6500 (with PPI) paying £120 per month, of which around £20 is for PPI.

Last month, I have decided to get a new car, so I thought I would extend my loan for this instead of using the dealer's finance. Going through various options with the bank's sales person, we have settled on £15000 loan over 7 years, for £322 per month. The settlement figure for the original loan was £4800 after 2 years! I had not thought about PPI, but have been told that this would be "transferred" from my original loan onto this one. I thought that since it was to be transferred, I would not have to pay anything extra.

Today was my first payment for the loan and, to my surprise, the actual loan repayment amount is only £265-ish with a separate PPI payment taken at £57!

Considering, I haven't claimed for my original loan and the fact that I did not think I would have to pay anything extra to have PPI on this loan and especially not the fact that it would cost me £57 less(!), do I have a case to completely cancel the PPI policy? It has been over a month now, so I guess I cannot "cancel" it the normal way, but have to go via complaints and inevitably FOS to reclaim any monies for it?

The sales person was aware that I had life/unemployment/sickness protection with Scottish Widows through my company but had neglected to say that this would cost me extra and the fact that I don't really need PPI!

Thoughts?

Cheers.

Hi there

This is Lloyds all over........:mad:

You done the right thing here and with the letter, well done :T, and believe you have a good reason for a mis sale.

However, you do not need to write in the figures if you don't want to but its up to you, because if they have agreed to mis selling then they have to repay back every bit of PPI you have paid, plus the interest.

Just to give you a little more info on the how the calculations are worked out for future reference for you, Maxdp posted this in the sticky thread above, on how the FOS works out calculations in loans and credit cards etc, hope you find it helpful and good luck.
http://forums.moneysavingexpert.com/showthread.html?t=1596473

Please post up as well for help when required.;)
Also remember to post by recorded delivery.

mrjack

Thanks, Di. I will post the letter recorded delivery and keep you posted. No doubt I'll get a refusal to start with.

di3004

mrjack wrote: »

Thanks, Di. I will post the letter recorded delivery and keep you posted. No doubt I'll get a refusal to start with.

Good luck mrjack.;)

Hopefully you will receive a good result straight away, but not to worry if you don't, just keep at them is best.;)
Fingers crossed for you and please let us know how you get on or if you need further help.

mrjack

Hi,

Well, I sent the thing 2 weeks ago and I still haven't had an acknowledgement that they received the letter, although it was signed for.

Should I wait longer or....?

Cheers

di3004

mrjack wrote: »

Hi,

Well, I sent the thing 2 weeks ago and I still haven't had an acknowledgement that they received the letter, although it was signed for.

Should I wait longer or....?

Cheers

I would give a little longer, on reclaiming its 8 weeks they have in full, and I always noticed as well that even though through checking on the Royal mail website, "tracking", it confirms they have received the item but does not always show a signature, or this may just take a bit longer to show up.;)
Good luck and as you already have been doing, keep us posted. X

mrjack

Still no acknowledgement.. I guess I'll wait till 8 weeks are up.. and then what?

mrjack

Whee, got an acknowledgement! Let's see what they come up with.

di3004

mrjack wrote: »

Whee, got an acknowledgement! Let's see what they come up with.

Finally lol :T fingers crossed mrjack.;)

mrjack

Hello again

I received a letter today from LTSB saying that after 8 weeks they are currently unable to provide me with a "final response". Furthermore, if I am unhappy with the delay, I should go directly to FOS and they included an FOS leaflet.

However, it does say that investigation is ongoing and a final response should be expected shortly.

What should I do? Wait a bit or go to FOS now?

Cheers!