Help Lloyds PPI response/offer - advice please?

Rayman2112

I wrote to Lloyds in Oct 2009 regarding a misold PPI on my loan taken in Jan 2006. The one off premium I am claiming back is £5154. I raised a few points using the standard template letter but my main point of claim is that I am self employed on short term contracts and the policy exclusions make it almost impossible for me to have a succesful claim.(fortunately I have not had a need to claim yet). I felt it was the responsability of the Seller to clarify if I was eligible for this policy at point of sale and in their response they state:-

"Lloyds processes require sellers to explore employment position with customers in order to ascertain:
1. whether customer was eligible for the policy
2. the cover which a customer would be eligible for under the Policy at its start date"

Apart from asking if I was self employed their adviser did not clarify the contract position or point out the potential exclusions in the policy.

Despite this Lloyds have not surprisingly rejected my complaints but have stated that if I cancel the policy I would be entitled to a refund of £252. As a valued client however they are prepared to back date the cancelation to the date if my first complaint and this gives a figure of approximately £1333.

This suggests to me that they know there is a strong case that it would be ruled against them and whilst I cannot understand why there is a large difference in the figures, their use of the word approximately on the £1333 suggests they are trying to buy me off?

I am of a mind to reject this offer and threaten FOS referral as I dont believe they can justify the sale of this policy. Should I write back stating I want full refund plus interest, plus 8%? has anyone else had a similar response from Lloyds and if so what stage are you at?

Any input would be greatly appreciated?

di3004

Rayman2112 wrote: »

I wrote to Lloyds in Oct 2009 regarding a misold PPI on my loan taken in Jan 2006. The one off premium I am claiming back is £5154. I raised a few points using the standard template letter but my main point of claim is that I am self employed on short term contracts and the policy exclusions make it almost impossible for me to have a succesful claim.(fortunately I have not had a need to claim yet). I felt it was the responsability of the Seller to clarify if I was eligible for this policy at point of sale and in their response they state:-

"Lloyds processes require sellers to explore employment position with customers in order to ascertain:
1. whether customer was eligible for the policy
2. the cover which a customer would be eligible for under the Policy at its start date"

Apart from asking if I was self employed their adviser did not clarify the contract position or point out the potential exclusions in the policy.

Despite this Lloyds have not surprisingly rejected my complaints but have stated that if I cancel the policy I would be entitled to a refund of £252. As a valued client however they are prepared to back date the cancelation to the date if my first complaint and this gives a figure of approximately £1333.

This suggests to me that they know there is a strong case that it would be ruled against them and whilst I cannot understand why there is a large difference in the figures, their use of the word approximately on the £1333 suggests they are trying to buy me off?

I am of a mind to reject this offer and threaten FOS referral as I dont believe they can justify the sale of this policy. Should I write back stating I want full refund plus interest, plus 8%? has anyone else had a similar response from Lloyds and if so what stage are you at?

Any input would be greatly appreciated?

Hi there

I must agree with you, and would write back to them, the difference in the amounts are huge.

Write to them (if you want to) and tell them you are not happy with the decision they made and with your reasons and the policy being totally worthless to you you should be entitled to reclaim ALL your PPI and the interest also 8% of what a court would award.
Tell them you are out of pocket due to a worthless policy which would not even pay out in your circumstances.

Ask them to reconsider, or you will have no option but to take it further.
To the FOS or so.

There is a lot of money there and in my opinion I would do the same as you, I would not actually be happy with that offer, afterall this was mis sold to you.

Also just to make you aware though, if they don't work this in your favour and you decide to go to the FOS, it may take some time due to the large volumes of these complaints, but it could be worth it.;)

Hope this helps, good luck and please keep us posted, fingers crossed.