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

controversialmike

thanks so much for the support, i'd keep you all posted.

I have left a message for my account manager to call me back and, believe it or not, once I had left details regarding the nature of the call, they then tried to sell me home insurance....

Eagerly awaiting their call.

di3004

controversialmike wrote: »

thanks so much for the support, i'd keep you all posted.

I have left a message for my account manager to call me back and, believe it or not, once I had left details regarding the nature of the call, they then tried to sell me home insurance....

Eagerly awaiting their call.

Fingers crossed for you Mike, we look forward to hearing the outcome on this.:D;)

marshallka

controversialmike wrote: »

thanks so much for the support, i'd keep you all posted.

I have left a message for my account manager to call me back and, believe it or not, once I had left details regarding the nature of the call, they then tried to sell me home insurance....

Eagerly awaiting their call.

Let us know then Mike and extra good luck.

controversialmike

Well, actually, at this stage, it seems to be fairly simple (fingers crossed).

I received a call back from LTSB this morning and had a good conversation with a lady in the loans dept (not my manager as requested). I started telling the whole story from day 1, making sure I was always pleasent and did not throw any wild accusations around about miss-sell me this policy. I just highlighted exactly what happened in the meeting, my situation at that time and my situation now.

It appears, miss-sold or not, the LPI on my loan is totally irrelevant for my situation. I have no dependencies, no commitments, no children or spouse and, worst case scenario that I die, the sale of my possessions would easily cover the outstanding debt. I could tell that she understood exactly what I was stating and, although she certainly wasn't in a position where she could give any difinitive answers or express her personal opinion, I could sense her embarrasment over the line. She was very helpfull.

She also stated that if I were to claim against this LPI, as I am self employed, i would have to be on the doll to prove my unemployment. Other than the NHS, I will NEVER claim benefits (i'm not even sure if i've spelt doll right) and this has always been my attitude. I'd live in a bush and eat street pigeon before that happens. So, based in this alone, I would NEVER have accepted the LPI, let alone the fact that I am paying 000's x the going rate for this cover. **may I highlight that I am paying circa £4.5k for cover that would entitle me to £2k (12months payments)** - I feel this will be my main point of concentration as the process continues.

She has told me to send a letter directly to her so that she can pass it onto the relevant department. She managed my expectations very well said it can take some time to review the case but did reassure me that she would deal with it herself to speed things up a little. So I have no information as to how this will affect my personal status with the bank or my loan agreement but I feel that as long as I can prove that my main priority is to keep up my payments, they will honor in kind.

I think she was re-assured that I am not "trying it on" by my attitude, solid explanation and my previous long-term relationship with the manager that sold me the policy.

All in all... I am very happy with todays progress, am very pleased to have dealt with the lady in question and, if this level is continued, will be happy to keep banking with LTSB

to be continued.......... hopefully with a happy ending that involves me not having to utilise the vast survival skills I have recently learnt from Bear Grills.

di3004

controversialmike wrote: »

Well, actually, at this stage, it seems to be fairly simple (fingers crossed).

I received a call back from LTSB this morning and had a good conversation with a lady in the loans dept (not my manager as requested). I started telling the whole story from day 1, making sure I was always pleasent and did not throw any wild accusations around about miss-sell me this policy. I just highlighted exactly what happened in the meeting, my situation at that time and my situation now.

It appears, miss-sold or not, the LPI on my loan is totally irrelevant for my situation. I have no dependencies, no commitments, no children or spouse and, worst case scenario that I die, the sale of my possessions would easily cover the outstanding debt. I could tell that she understood exactly what I was stating and, although she certainly wasn't in a position where she could give any difinitive answers or express her personal opinion, I could sense her embarrasment over the line. She was very helpfull.

She also stated that if I were to claim against this LPI, as I am self employed, i would have to be on the doll to prove my unemployment. Other than the NHS, I will NEVER claim benefits (i'm not even sure if i've spelt doll right) and this has always been my attitude. I'd live in a bush and eat street pigeon before that happens. So, based in this alone, I would NEVER have accepted the LPI, let alone the fact that I am paying 000's x the going rate for this cover. **may I highlight that I am paying circa £4.5k for cover that would entitle me to £2k (12months payments)** - I feel this will be my main point of concentration as the process continues.

She has told me to send a letter directly to her so that she can pass it onto the relevant department. She managed my expectations very well said it can take some time to review the case but did reassure me that she would deal with it herself to speed things up a little. So I have no information as to how this will affect my personal status with the bank or my loan agreement but I feel that as long as I can prove that my main priority is to keep up my payments, they will honor in kind.

I think she was re-assured that I am not "trying it on" by my attitude, solid explanation and my previous long-term relationship with the manager that sold me the policy.

All in all... I am very happy with todays progress, am very pleased to have dealt with the lady in question and, if this level is continued, will be happy to keep banking with LTSB

to be continued.......... hopefully with a happy ending that involves me not having to utilise the vast survival skills I have recently learnt from Bear Grills.

Cool, well let's hope it will continue to be straight forward for you Mike, fingers crossed.;)

controversialmike

Hi all, just putting my letter together and am wondering...

what is a single premium policy?
and (reffering to the above figures)
do I have one or not?

Thanks

di3004

controversialmike wrote: »

Hi all, just putting my letter together and am wondering...

what is a single premium policy?
and (reffering to the above figures)
do I have one or not?

Thanks

Hi Mike

Good luck with this.

In regards of a Single Policy, basically its when they add the loan and the insurance together, it works out very costly, for example for some loans over say 10 or 20 years they are sold PPI added to the loan and the cover may only protect the loan for 5 years, so you would be paying for PPI for the life of the loan and it only protects for 5 of those years.
If you loan was taken out I think before last year then yes if Lloyds TSB they would add the PPI into the loan as single policy, they have stopped selling them like this now.

However, for more information check on Martin's explaination here:

A single premium policy is where the whole cost of the insurance is added as a big lump sum at the start of the agreement, which is then repaid over the term of the loan. Many loan policies were sold like this until they were banned in May 09, so if this applies to you and you left or changed your agreement part way through, you may be eligible for a part refund.
Does this apply to you? Expand the full Single premium briefing.




Close the list

In Jan 09 the Competition Commmission ended its two year investigation, saying this form of insurance shoudl be banned and gave lenders until Oct 2010 to comply. The FSA, who'd previously said it thought the policies were likely to be unfair to consumers as they were restrictive and most didn’t allow refunds if a contract ended early, then asked all lenders to stop selling it by 29 May 09.

These opinions greatly strengthen the weight of reclaimers' cases.

How to tell if you have a single premium policy?

This type of policy is mainly sold with loans rather than credit or store cards. If it’s a single premium policy, the original paperwork will show the insurance as a fixed lump sum amount.

If the agreement was after May 05, you would have been asked to sign a separate agreement so you should have extra paperwork for the loan and the insurance.

It’s also noteworthy that these policies are often only valid for five years max; even if your loan term is longer, so you could get a five year policy but end up paying interest on the insurance for the full loan term! If you didn’t realise your cover only lasts / lasted for five years read the 'Big One' section above for more info.

When is a reclaim possible?

The FSA has said that new and existing customers should benefit from its agreement with providers and my interpretation is this means it should also apply to past consumers who were treated unfairly. If you had a single premium policy, one of the following applies to you and you didn’t get a refund at the time, you should now contact your lender to ask for a partial refund.

• cancelled your insurance before the end of the policy,
• paid your loan back early (unless this was very near the end),
• had a change of circumstances meaning you were no longer eligible for the cover and informed your insurance provider of this change at the time.

If your circumstances did not change and you saw your policy through to the end you will not be able to reclaim for this section, but do read the other misselling categories to see if you can reclaim the insurance for another reason.

The FSA also says that refunds should be “calculated fairly, which may or may not result in a pro rata refund”. Unfortunately refunds tend not to be fully pro rata, i.e. you won’t get back half the cost of the insurance if you have cancelled after half the time, as providers are allowed to include justifiable costs. These costs are usually paid towards the start of your contract but if you do cancel you should still get a good whack back.

Further note for existing customers

If you still have a single premium policy you can’t make a reclaim under this section, yet you may be able to cancel your insurance and get it cheaper elsewhere. See the Ditch Loan Insurance article for more info and read the other misselling categories to see if you can reclaim the insurance for another reason.

If you have changed your circumstances since taking out the policy, contact your provider as soon as possible to see if you're still covered.

When you try to cancel your insurance without ending the loan, some lenders make you start a new agreement. They are allowed to do this as long as the new loan is on the same or better terms and does not disadvantage you in any way, for example it shouldn’t be more expensive or last longer. You should ask for this to be done without making a new search on your credit file.

The FSA says: "When consumers cancel the PPI without repaying the loan, some firms will need to reissue the loan without the PPI. Firms should ensure they treat their customers fairly in relation to the terms on which they reissue the loan."

controversialmike

eek, really sorry but i'm getting a little confused now.

It seems as though mine is a single premium policy as the initial LPI (2,654.32) has a total LPI repayment of 4,438.68 over the 84 months. However; the loan was taken out in dec 2006 and I certainly don't recall there being 2 seperate documents for me to sign. All the calculations for the LPI are on the loan agreement contract (listed above is basically a carbon copy of the front page of my contract). Surely "if" this is a Single Premium policy, as is was taken out after may'05, I would have had to sign 2 seperate contracts.

I can't even find the original LPI policy docs and i'm fastiduous at keeping my parerwork in order (wondering if they were ever given to me in the first place TBH).

My letter is becomming extremely long now.... just want to make sure I don't quote any mistakes.

controversialmike

Ok, as much as I look into the Single Policy facts, I just cannot work out if ths applies to me or not so I am going to proceed with a letter that doesn not highlight any concerns in this area (I hope I'm not shooting myself in the foot, but I just don't know)

My letter in now standing at over 800 words as I wanted to make sure i got every single fact across to them. I have taken a softly, softly approach and am not sure if this is the right attitude.

Am I being too cheeky if I ask that one of you read thought the letter (i'll send via email or personal message) before I send?

di3004

controversialmike wrote: »

eek, really sorry but i'm getting a little confused now.

It seems as though mine is a single premium policy as the initial LPI (2,654.32) has a total LPI repayment of 4,438.68 over the 84 months. However; the loan was taken out in dec 2006 and I certainly don't recall there being 2 seperate documents for me to sign. All the calculations for the LPI are on the loan agreement contract (listed above is basically a carbon copy of the front page of my contract). Surely "if" this is a Single Premium policy, as is was taken out after may'05, I would have had to sign 2 seperate contracts.

I can't even find the original LPI policy docs and i'm fastiduous at keeping my parerwork in order (wondering if they were ever given to me in the first place TBH).

My letter is becomming extremely long now.... just want to make sure I don't quote any mistakes.

Hi Mike

If this is Lloyds tsb they still used to add the ppi within the loan, so you would not have signed a separate agreement.

It may be a good idea to request a SAR, they have 40 days to comply and send all info in relation to your account(s) and as requested on a SAR letter template.
There is a charge of £10 postal order or cheque payment for this, and post by recorded delivery.
Link here to SAR template:
http://forums.moneysavingexpert.com/showthread.html?t=1475553