Miss-sold PPI... but i might need to use it now! help needed.

controversialmike

Hello all you savings savvy socialites!

I could really do with a little advise regarding my current Loan agreement with LTSB. I've been with the same branch for 16 years and, the week before my manager finally retired, he miss-sold me PPI on a loan. Blatantly as well. No doubt.

I'm confident because I was sat there in the meeting (when I took out the loan) thinking "I bet he ticks that PPI box without even asking me"... low and behold, when I review the paperwork back at home, the box was ticked, policy sold!

I know, I know "more fool you for not raising the question in the meeting" but, at the time, I was hanging by the skin of my teeth and just wanted to get out of there with an acceptance (albeit @ 19%:mad:). I called the bank the next week to discuss and they told me to send in a letter which, 12mths later, I still haven't gotten round to doing.

However, i'm now very, very skint! income is down -70% from last year and my savings for my 08/09 tax bill had been eaten up with 6 months of CC and loan payments.

I imagine LTSB will grant the rebate with a little pressure but this will only help if I can get the amount paid into an account to cover my next 6 mths payments or ask them to use their ill-gotten gains to give me a 6 mth paid break in payments. I'm aware that they usually knock it off the outstanding debt but this doesn't help me pay next months Direct Debit.

I'm also concerned that, if I decide to utilise my PPI, it'll affect my credit rating? so i'm not sure which road to take.

Any advise appreciated.....

thanks

di3004

controversialmike wrote: »

Hello all you savings savvy socialites!

I could really do with a little advise regarding my current Loan agreement with LTSB. I've been with the same branch for 16 years and, the week before my manager finally retired, he miss-sold me PPI on a loan. Blatantly as well. No doubt.

I'm confident because I was sat there in the meeting (when I took out the loan) thinking "I bet he ticks that PPI box without even asking me"... low and behold, when I review the paperwork back at home, the box was ticked, policy sold!

I know, I know "more fool you for not raising the question in the meeting" but, at the time, I was hanging by the skin of my teeth and just wanted to get out of there with an acceptance (albeit @ 19%:mad:). I called the bank the next week to discuss and they told me to send in a letter which, 12mths later, I still haven't gotten round to doing.

However, i'm now very, very skint! income is down -70% from last year and my savings for my 08/09 tax bill had been eaten up with 6 months of CC and loan payments.

I imagine LTSB will grant the rebate with a little pressure but this will only help if I can get the amount paid into an account to cover my next 6 mths payments or ask them to use their ill-gotten gains to give me a 6 mth paid break in payments. I'm aware that they usually knock it off the outstanding debt but this doesn't help me pay next months Direct Debit.

I'm also concerned that, if I decide to utilise my PPI, it'll affect my credit rating? so i'm not sure which road to take.

Any advise appreciated.....

thanks

Hello and welcome.;)

I would write to them and reclaim on this.

They should have given you the option to start on the PPI and should not have added this themselves, but that is Lloyds TSB for you unfortunately.

I hope this is straight forward for you, in my experience they are not the easiest to deal with, but hopefully it will be a different case for you.

They have 8 weeks in full to respond and if they do admit they mis sold, then write to them and ask them how you want this repaid.
It they offer you a offer of goodwill, its normally because they do not want to admit liability that they mis sold, where if this is the case they will possibly use the refund on your loan repayments.

But keep on at them until they resolve your complaint, or until they issue you with the final decision, post by recorded delivery.
In the final response they should give you details of the financial ombudsman service (FOS), you can take your complaint to them if your not satisfied with the outcome of your case.

For more information check on the link below, you will find useful PPI reclaiming information and template letters, obviously write in your own reasons, good luck and please keep us posted.;)
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

It should not affect your credit rating, but it may be unlikely for them to offer another loan again, but I'm sure there are many here that will give their own opinions as well.

marshallka

controversialmike wrote: »

Hello all you savings savvy socialites!

I could really do with a little advise regarding my current Loan agreement with LTSB. I've been with the same branch for 16 years and, the week before my manager finally retired, he miss-sold me PPI on a loan. Blatantly as well. No doubt.

I'm confident because I was sat there in the meeting (when I took out the loan) thinking "I bet he ticks that PPI box without even asking me"... low and behold, when I review the paperwork back at home, the box was ticked, policy sold!

I know, I know "more fool you for not raising the question in the meeting" but, at the time, I was hanging by the skin of my teeth and just wanted to get out of there with an acceptance (albeit @ 19%:mad:). I called the bank the next week to discuss and they told me to send in a letter which, 12mths later, I still haven't gotten round to doing.

However, i'm now very, very skint! income is down -70% from last year and my savings for my 08/09 tax bill had been eaten up with 6 months of CC and loan payments.

I imagine LTSB will grant the rebate with a little pressure but this will only help if I can get the amount paid into an account to cover my next 6 mths payments or ask them to use their ill-gotten gains to give me a 6 mth paid break in payments. I'm aware that they usually knock it off the outstanding debt but this doesn't help me pay next months Direct Debit.

I'm also concerned that, if I decide to utilise my PPI, it'll affect my credit rating? so i'm not sure which road to take.

Any advise appreciated.....

thanks

So you are saying you knew you had the PPI (when you got home from signing the agreement, rang to cancel it a WEEK later, they told you to write in and you left it for another 12 months and now want to just cancel it????

You have mentioned misselling it but this would be difficult to prove as they could say you could have actually cancelled in the cooling off period which was when you called them within a week and did not do anything about it and they probably have records of this???).

If all you want to do is cancel the PPI then they would probably have to draw up another agreement and the new one would reflect the cancelling and should be of the same rate and also the same terms as you original loan. This can be done but you will have to write to them this time and send it recorded delivery so you have a proof. You are allowed to do this but the rebate will be taken from the balance of the loan and will not be refunded to you in a cheque i am afraid to say.

controversialmike

Many thanks for your quick response guys!

Yes... it's been 12 months since my call and I still haven't got round to the letter. I'm a fool! However; as far as i'm am concerned I am not "canceling" anything. I didn't want the insurance, didn't ask for it, didn't need it (back then) and there was no mention of it during the meeting when I set up the loan so i don't see how they can say "sorry, you left it too long". Yes, i have been aware from the start that the payments taken have accounted for PPI but it's only now, at this time, that i really need to address the matter.

I am more than happy for them to use the entire rebate to go towards the outstanding amount if it will cover my next few months payments. I understand that they probably get customers taking out the policy (when they needed it), then trying for a "miss-sold" refund when the going gets good but i'm the total opposite. All I want to do is continue making these repayments until I can finally find work. But to do this, at the end of next month I have to move into the car again for the rest of the summer (or until I find work) so that I can use my rental deposit to make another repayment.

What would you do guys? Swallow pride and utilise the insurance you've been paying out for?... or go for a refund to cover the repayments?

I can't help but think; if they hadn't been taking for the insurance, there would currently be plenty of funds in my account to make a few more repayments.

Huge thanks for a warm welcome!

marshallka

controversialmike wrote: »

Many thanks for your quick response guys!

Yes... it's been 12 months since my call and I still haven't got round to the letter. I'm a fool! However; as far as i'm am concerned I am not "canceling" anything. I didn't want the insurance, didn't ask for it, didn't need it (back then) and there was no mention of it during the meeting when I set up the loan so i don't see how they can say "sorry, you left it too long". Yes, i have been aware from the start that the payments taken have accounted for PPI but it's only now, at this time, that i really need to address the matter.

I am more than happy for them to use the entire rebate to go towards the outstanding amount if it will cover my next few months payments. I understand that they probably get customers taking out the policy (when they needed it), then trying for a "miss-sold" refund when the going gets good but i'm the total opposite. All I want to do is continue making these repayments until I can finally find work. But to do this, at the end of next month I have to move into the car again for the rest of the summer (or until I find work) so that I can use my rental deposit to make another repayment.

What would you do guys? Swallow pride and utilise the insurance you've been paying out for?... or go for a refund to cover the repayments?

I can't help but think; if they hadn't been taking for the insurance, there would currently be plenty of funds in my account to make a few more repayments.

Huge thanks for a warm welcome!

Mike, if you get a refund then it usually does not work like that in that it covers your missed repayments. A rebate is if you cancel the insurance and then a new agreement is drawn up and the new one would be without the PPI, but if missold then this could usually be in the form of payment to yourself but again with there being arrears on the account, it is usually paid off the account.

What I was meaning was that a week after them adding the PPI to your account you made a phone call to discuss this (so you did know it was added to your account) and then you were told to write in. IF you had written in then this would have been during the cooling off period and cancelled with no penalty whatsoever so they MAY use this against you if they have a copy of this phone call or a transcript relating to it.

If you want to give it a try for the misselling of it then go ahead and try. You have nothing to lose really.

Di has written a post in relation to misselling above. Please post back and let us know how you go on.

controversialmike

Thanks Marshallka,

At this stage I have no arrears. I've made every payment in full, on time since the start of the agreement and will continue to do so, whatever the cost.

I am now looking at my contract, i've never been more confused and utterly shocked:

Key Financial Info;
loan amount
cash loan 8,600.00
LPI 2,654.32
total loan 11,254.32

monthly repayments
cash loan 167.75
LPI 51.77
total loan 219.52

no of repayments
cash loan 84
LPI 84
total loan 84

total amount repayable
cash loan 14,091.00
LPI 4,438.68
total loan 18,439.68

then there's this other section (no idea what this is) called....

Other Financial Info
total charge for credit
cash loan 5,491.00
LPI 1,694.36
total loan 7,185.36


I feel sick! I borrowed 8,600 and they are due to take 4,348 (over 50%) without even asking, so that, in case of loss of income, I am covered for 12 months? 12 x 167.75 = 2,013.... how can this be right?

I came out of the meeting with a contract fully under the impression that I was to repay 8,600 @ 16.5 apr over 84 mths...... I didn't think that after 16yrs of happy banking with the same manager (who is the father of an old school friend of mine, a respected member of our village community), I needed to go through the document with a fine tooth comb. I certainly did not agree to to the above. "If you take out this loan with us, it will reduce the current APR costs you are paying out on your Credit Cards and your monthly repayments will be less than they currently are" (was about £250pm split between 2 cards, interest + a token £10 off the balance), THIS is the only information they gave me verbally and it sounded acceptable.

My first repayment was made 02/01/07 and this has been successfully collected from me ever since (219.52 x 19mths = 4,170.88 repaid to-date / 983.63 of which is LPI cover). If I hadn't been paying the LPI, the 983.63 that I would currently have in my account would cover my payments for the next 5 months +

I apologies for being another newbie that has rocked up asking for other peoples spare time to assist with problems that I should have been wise enough to foresee... but I don't have any associates so assist me and I don't want to call my branch in the wrong frame of mind.

This year I am due to profit only £5000 from my business so if anyone can advise me of how to handle this, I can only promise I will adhere to the rules of Karma and pass on the good will in some other manner (obviously not financial).

With thanks.....

marshallka

controversialmike wrote: »

Thanks Marshallka,

At this stage I have no arrears. I've made every payment in full, on time since the start of the agreement and will continue to do so, whatever the cost.

I am now looking at my contract, i've never been more confused and utterly shocked:

Key Financial Info;
loan amount
cash loan 8,600.00
LPI 2,654.32
total loan 11,254.32

monthly repayments
cash loan 167.75
LPI 51.77
total loan 219.52

no of repayments
cash loan 84
LPI 84
total loan 84

total amount repayable
cash loan 14,091.00
LPI 4,438.68
total loan 18,439.68

then there's this other section (no idea what this is) called....

Other Financial Info
total charge for credit
cash loan 5,491.00
LPI 1,694.36
total loan 7,185.36


I feel sick! I borrowed 8,600 and they are due to take 4,348 (over 50%) without even asking, so that, in case of loss of income, I am covered for 12 months? 12 x 167.75 = 2,013.... how can this be right?

I came out of the meeting with a contract fully under the impression that I was to repay 8,600 @ 16.5 apr over 84 mths...... I didn't think that after 16yrs of happy banking with the same manager (who is the father of an old school friend of mine, a respected member of our village community), I needed to go through the document with a fine tooth comb. I certainly did not agree to to the above. "If you take out this loan with us, it will reduce the current APR costs you are paying out on your Credit Cards and your monthly repayments will be less than they currently are" (was about £250pm split between 2 cards, interest + a token £10 off the balance), THIS is the only information they gave me verbally and it sounded acceptable.

My first repayment was made 02/01/07 and this has been successfully collected from me ever since (219.52 x 19mths = 4,170.88 repaid to-date / 983.63 of which is LPI cover). If I hadn't been paying the LPI, the 983.63 that I would currently have in my account would cover my payments for the next 5 months +

I apologies for being another newbie that has rocked up asking for other peoples spare time to assist with problems that I should have been wise enough to foresee... but I don't have any associates so assist me and I don't want to call my branch in the wrong frame of mind.

This year I am due to profit only £5000 from my business so if anyone can advise me of how to handle this, I can only promise I will adhere to the rules of Karma and pass on the good will in some other manner (obviously not financial).

With thanks.....

At this point then if you are sure you are making a complaint for this being missold you need to follow the advice in Di3004's post and get things moving. There is a link in with template letters and you can pick any reasons out of it and try to use your own wording as its better. You then send it recorded delivery and they are allowed up to 8 weeks for a final response.

Good luck

controversialmike

well i'm hoping that someone can confirm (using the figures in my last post) that the policy (miss-sold or not) is extortionate is comparison to the market rate for this "insurance". Having read the guides and articles here "Most standard PPI policies cost £10-£30 per £100. PaymentCare costs £3.95 per £100". If my previous manager had included a "market rate" PPI, I might be able to understand but this package I have works out to be approx. £52 per £100 borrowed. This seems pretty "extreme"?

I think I really need to call my new manager and have a chat with him about this in the first instance. I'd really like to speak to someone about what's been going on but I don't want to shoot myself in the foot.

Is calling first the best approach or do I just go in straight with a reclaim letter?

Cheers all

di3004

controversialmike wrote: »

well i'm hoping that someone can confirm (using the figures in my last post) that the policy (miss-sold or not) is extortionate is comparison to the market rate for this "insurance". Having read the guides and articles here "Most standard PPI policies cost £10-£30 per £100. PaymentCare costs £3.95 per £100". If my previous manager had included a "market rate" PPI, I might be able to understand but this package I have works out to be approx. £52 per £100 borrowed. This seems pretty "extreme"?

I think I really need to call my new manager and have a chat with him about this in the first instance. I'd really like to speak to someone about what's been going on but I don't want to shoot myself in the foot.

Is calling first the best approach or do I just go in straight with a reclaim letter?

Cheers all

Hi there

I would always keep everything in writing so that you have something to fall back on, for instance keep a copy in case you need to refer to them at a later date, for instance if you decide to go to the Financial ombudsman service (FOS) where you would supply all copies of yours and the banks correspondence.;)
Post by recorded delivery as well, this is your proof of posting.

Good luck.

controversialmike

Yes I will do that when it comes round to putting something in writing! copy, register and receipt... no doubt.

But will it harm to give them a quick call today to discuss it though? see what their views are on the matter? I'd really like to have a chat with them about it.

Thanks

di3004

controversialmike wrote: »

Yes I will do that when it comes round to putting something in writing! copy, register and receipt... no doubt.

But will it harm to give them a quick call today to discuss it though? see what their views are on the matter? I'd really like to have a chat with them about it.

Thanks

Hi Mike, that should not be a problem.;)
Go for it, the best of luck.