mis-selling?

Claims_Manager_Rep

Why would anyone take out a single premium PPI on a loan, pay it off (as a lump sum) and then take out another one? It’s a bit light burning £20 notes but less pleasurable.
Why do you think Lloyds are banned from selling single premium PPI?
If it was taken out after 2005, it would have been a FSA regulated sale. By the sounds of it they didn’t explain the costs of single premium PPI to him properly.
Yes he has grounds, claim it back!

jonesMUFCforever

Claims_Manager_Rep wrote: »

Why would anyone take out a single premium PPI on a loan, pay it off (as a lump sum) and then take out another one? It’s a bit light burning £20 notes but less pleasurable.
Why do you think Lloyds are banned from selling single premium PPI?
If it was taken out after 2005, it would have been a FSA regulated sale. By the sounds of it they didn’t explain the costs of single premium PPI to him properly.
Yes he has grounds, claim it back!

He would have been refunded a proportion of the first PPI (unless he had made a claim).
I don't think the PPI is what OP was concerned about just they think the consolidation loan was done at a higher rate than the first loan and that OP was not advised that they could have been better off getting a mortgage instead of the loan.
Read my previous posts which explains why I think OP is wrong.

Claims_Manager_Rep

Yeah I know but he would only get a fraction of what he had paid for the PPI back and the rest of it would go into the new loan. I can only think of one reason for doing this and that is to earn the sales person commission. If it wasn’t in his interest to do this, I would suggest there are grounds for mis-selling. I know that the original question was about loan advice but I would say there may be grounds for getting the PPI back.

jonesMUFCforever

Claims_Manager_Rep wrote: »

Yeah I know but he would only get a fraction of what he had paid for the PPI back and the rest of it would go into the new loan. I can only think of one reason for doing this and that is to earn the sales person commission. If it wasn’t in his interest to do this, I would suggest there are grounds for mis-selling. I know that the original question was about loan advice but I would say there may be grounds for getting the PPI back.

Care to quote what fraction would be refunded?

Claims_Manager_Rep

In the words of the FSA “We were particularly concerned with terms that prevent consumers from receiving any refund of the premium if they want to cancel the PPI policy for any reason. For example if they repay the associated loan early, are no longer able to claim under the insurance, or simply do not want to have the cover any more ('nil refund terms'). We were also concerned with the fairness and transparency of refund terms.”

There was a time when nil refunds were given but even since the PPI refunds agreement was brought in by FSA in 2007 the rebate terms are much less than pro-rata. In answer to your question if it was paid-off halfway through it would have been much less than 50%

Bob_the_Saver

Why are all of these dubious posts (usually from newbies) in a Times font where as the rest of our posts are in sans serif? I'm not saying anything against newbies - just wondering!

ermintrude1

Hi claims manager rep, thanks for this, i did say earlier that i thought they'd had two bites of the ppi cherry when they consolidated the loan.

I don't think he has anything to lose by submiting a claim for it.

Would you expand a bit on Lloyds being banned from selling single ppi's - don't fully understand exactly what that is?

jonesMUFCforever

ermintrude1 wrote: »

Hi claims manager rep, thanks for this, i did say earlier that i thought they'd had two bites of the ppi cherry when they consolidated the loan.

I don't think he has anything to lose by submiting a claim for it.

Would you expand a bit on Lloyds being banned from selling single ppi's - don't fully understand exactly what that is?

PPI is now sold separately - you pay a monthly instalment instead of a lump sum added to your loan.

Claims_Manager_Rep

Bob_the_Saver wrote: »

Why are all of these dubious posts (usually from newbies) in a Times font where as the rest of our posts are in sans serif? I'm not saying anything against newbies - just wondering!

What is it about my post that you find dubious?

Claims_Manager_Rep

ermintrude1 wrote: »

Hi claims manager rep, thanks for this, i did say earlier that i thought they'd had two bites of the ppi cherry when they consolidated the loan.

I don't think he has anything to lose by submiting a claim for it.

Would you expand a bit on Lloyds being banned from selling single ppi's - don't fully understand exactly what that is?

Hi - As posted above, the FSA has introduced a ban on single premium PPI policies (came into force this year) i.e. PPI added as a lump sum to your loan. Banks cannot sell these policies in this format any more.You need to consider if there are any other grounds i.e. did your partner understand all of the limitations?(be specific), were there any features which would of limited your partner from claiming (does he to a manual job/suffer from back problems, did he have any pre-exisitng health conditions, was he self-emplyed/work p/time, did he already have employment benefit which would cover sickness etc...)
In addition to this, from what you have said I would of thought that a claim based on selling single premium when he was trying to reduce his outgoings would be appropriate. Plus i would question if he was given all of the facts about how he would be paying PPI as a lump sum, would incur additional interest, it would be expensive to pay-off early or consolidate etc... good luck you have nothing to lose