Has Anyone Done This-Advice Please,

graham260967

I took out a small business loan in 2002 with LTSB,

As part of the loan, which 85% was underwritten by the DTI and I paid premiums for, I had to take out their insurance PPI of 9k or they would refuse me the loan.

The business has now ceased trading and as such the insurance is no more than useless, as if I became seriously ill for example the loan would cover me for 24 months, after which the business would have ceased trading any way and so LTSB would have claimed off the DTI. The insurance would have been a lot better for me if it had included unemployment, however this was not offered. It appears to me that it was a case of making the most out of myself without any risk to them

It goes without saying I have complained and they have rejected it.

However I am at the stage were the PPI that I have paid plus the interest is near to the amount outstanding on the loan. So I have informed them that I am no longer prepared to pay anymore and as such the loan has been frozen until I have a meeting in the new year.

Although 85% of what's outstanding is underwritten by the DTI, I see no reason why LTSB should claim this as most is PPI insurance thus affecting my credit record.

What should be my best plan when I have a meeting with them?

Regards

Graham

di3004

graham260967 wrote: »

I took out a small business loan in 2002 with LTSB,

As part of the loan, which 85% was underwritten by the DTI and I paid premiums for, I had to take out their insurance PPI of 9k or they would refuse me the loan.

The business has now ceased trading and as such the insurance is no more than useless, as if I became seriously ill for example the loan would cover me for 24 months, after which the business would have ceased trading any way and so LTSB would have claimed off the DTI. The insurance would have been a lot better for me if it had included unemployment, however this was not offered. It appears to me that it was a case of making the most out of myself without any risk to them

It goes without saying I have complained and they have rejected it.

However I am at the stage were the PPI that I have paid plus the interest is near to the amount outstanding on the loan. So I have informed them that I am no longer prepared to pay anymore and as such the loan has been frozen until I have a meeting in the new year.

Although 85% of what's outstanding is underwritten by the DTI, I see no reason why LTSB should claim this as most is PPI insurance thus affecting my credit record.

What should be my best plan when I have a meeting with them?

Regards

Graham

Hi Graham and welcome.

Hope this gets sorted out soon, so good luck with this and hopefully someone will be along to give you some advice on this one.

But if nothing is resolved in your favour, try the Financial ombudsman service (FOS), you can complain through these in regards of Lloyds TSB.
http://www.financial-ombudsman.org.uk/consumer/complaints.htm

For any business that are no longer trading, they may be listed with the financial compensation scheme (FSCS) if you need to make a reclaim through these, they will check if the company are listed with them, if so then you can go through these.
http://www.fscs.org.uk/contacts/

Good luck Graham, please keep us posted and with a bit of luck someone will have some useful advice for you on this.;)