Do I have a case?

beginner52

Good afternoon,

I am seeking advice on PPI misselling. My wife took out a loan for £15k over 84 months with LTSB in 2004, she was 62 at the time. She was informed that in order for the loan to progress she would have to take out PPI at a total cost of £4,476 or £77.45 per month. Having no other option as, at the time, I was credit blacklisted, she agreed and signed. In 2007 the bank called us in and offered a further loan of £16k with a PPI monthly payment of £73.15 resulting in a total PPI repayment of £150.06. Shortly after this was agreed she received a letter from LTSB infoming her that, as she was 65, the unemployment cover in the policy was no longer available although payments were not received or reduced. She queried this and the reply was the the loan would be paid off sooner, no choice was given to reduce monthly payments and nothing received in writing. I am new to this and therefore my questions are:-

1) Does she have a case?
2) If so will she have to make two claims?
3) Can she demand that the money is placed in our account and not used to reduce the loan?
4) Should the loan repayments be restructured?

Thank you for your time in reading this.

di3004

beginner52 wrote: »

Good afternoon,

I am seeking advice on PPI misselling. My wife took out a loan for £15k over 84 months with LTSB in 2004, she was 62 at the time. She was informed that in order for the loan to progress she would have to take out PPI at a total cost of £4,476 or £77.45 per month. Having no other option as, at the time, I was credit blacklisted, she agreed and signed. In 2007 the bank called us in and offered a further loan of £16k with a PPI monthly payment of £73.15 resulting in a total PPI repayment of £150.06. Shortly after this was agreed she received a letter from LTSB infoming her that, as she was 65, the unemployment cover in the policy was no longer available although payments were not received or reduced. She queried this and the reply was the the loan would be paid off sooner, no choice was given to reduce monthly payments and nothing received in writing. I am new to this and therefore my questions are:-

1) Does she have a case?
2) If so will she have to make two claims?
3) Can she demand that the money is placed in our account and not used to reduce the loan?
4) Should the loan repayments be restructured?

Thank you for your time in reading this.

Hello there

I also left a post for you in the above thread but not to worry.;)

Going by what you said, yes I think there is a case with the reasons you have given.

If there are no arrears then yes ask them if they will consider refunding this direct.

In regards of refunds, lately it seems that they are paying this towards the loans to reduce to the debt, but if they admit to mis selling and not offer on a goodwill basis, I then think your wife does have a right if they admit to this, to have this repaid directly to her.

Some however, will say to pay the existing loan off with a new loan without the PPI, then you can still reclaim on the PPI.

For more info with templates etc, check on Martin's link here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Please feel free to ask for further help, good luck.;)

Also just to add the thread which originally posted by Maxdp, in how the FOS calculates refunds, this may give you some idea as well.
http://forums.moneysavingexpert.com/showthread.html?t=1596473