My situation with Lloyds TSB (3 loan agreements)

DevilDamo

Following advice taken by MSE, I wrote to Lloyds TSB regarding three loans, one of which has been paid off. I used the standard template letter from here and the reason I put for being mis-sold the PPI on all loan agreements was...

"I believe I was mis-sold my Loan Protection Insurance Policy as I was not made aware it was optional and were led to believe purchasingit would assist your application for credit."

I soon received replies back from Lloyds acknowledging receipt of my complaint and that it is being dealt with. Christmas/New Year passed and so I received another letter saying they're still looking into it and will come back to me in due course.

This morning, I received three letters.

The first letter, which was for the £18,000 loan stated...

"Lloyds TSB did not lead customers to believe that the insurance was compulsory or that the application for credit would be compromised in the absence of cover. Lloyds TSB through its processes, practices and documents took steps to ensure the customer was fully aware of the optional nature of the cover.


Lloyds TSB's sellers were trained that the loan protection policy was optional and that it must be explained fully to the customer with the full costs of the loan and protection explained seperately."

It also states I signed an Optional Loan Protection Acknowledgment of Purchase forum and that a copy was attached, etc...

On this particular loan agreement, they stated...

"When you settled your loan on 2nd November 2004 you received a net rebate on your Loan Protection Insurnace for £4108.13. This was used to reduce yuor loan settlement figure.


When you bought the policy, it was explained to you that this rebate was based on a sliding scale due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a more favourable rebate on a pro rata basis as a gesture of goodwill on this occasion.


A pro-rata rebate would have amounted to £4247.94.


We would like to offer the difference of £139.81."

Because that loan has been paid off and the monies are minor, I accepted their offer and have put the letter in the post so this money will be paid into my current account.

The second letter, which was for the £25,000 loan stated...

"Lloyds TSB did not lead customers to believe that the insurance was compulsory or that the application for credit would be compromised in the absence of cover. Lloyds TSB through its processes, practices and documents took steps to ensure the customer was fully aware of the optional nature of the cover.

When you bought the policy it was explained to you that in the event of cancellation, any rebate available to you would be calculated on a sliding scale, due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a more favourable rebate on a pro rata basis as a gesture of goodwill on this occasion.

We will calculate the amount of your rebate on the pro rata basis if you decide to cancel your policy early, meaning it will be calculated on the actual amount of time you will have had the policy.

If you choose to cancel your Loan Protection Insurance you would currently receive a rebate of approximately £778.61. However, as you are a valued customer of Lloyds TSB I am willing to back date your cancellation to the date we first received your complaint and offer you a pro rata rebate on this policy. Should you wish to cancel your policy, I am prepared to backdate the cancellation of your policy to 23rd November 2009 which was when we first received your complaint. You will receive a rebate approximately £2308.28.

Please note that should you wish to accept this offer, your monthly loan repayments will remain the same, which means that you will repay your loan earlier."

Now, I'm a bit confused. Ok, their first paragraph states the policy was not mis-sold to me, etc... Their 3rd paragraph states I'd receive a rebate of the time I've had the policy (i.e. 52 months). Their 4th paragraph states a figure of £778.61 but I would be getting a rebate of £2308.28. And their last paragraph states my term will be reduced but my payments will remain the same. I thought if my PPI has been cancelled, the PPI amount will be deducted from the monthly installments!?!

The third letter, which was for the £15,000 loan stated...

"Lloyds TSB did not lead customers to believe that the insurance was compulsory or that the application for credit would be compromised in the absence of cover. Lloyds TSB through its processes, practices and documents took steps to ensure the customer was fully aware of the optional nature of the cover.

When you bought the policy it was explained to you that in the event of cancellation, any rebate available to you would be calculated on a sliding scale, due to the claims risk being greater at the beginning of the loan. However we are prepared to offer you a more favourable rebate on a pro rata basis as a gesture of goodwill on this occasion.

We will calculate the amount of your rebate on the pro rata basis if you decide to cancel your policy early, meaning it will be calculated on the actual amount of time you will have had the policy.

If you choose to cancel your Loan Protection Insurance you would currently receive a rebate of approximately £1832.20. However, as you are a valued customer of Lloyds TSB I am willing to back date your cancellation to the date we first received your complaint and offer you a pro rata rebate on this policy. Should you wish to cancel your policy, I am prepared to backdate the cancellation of your policy to 23rd November 2009 which was when we first received your complaint. You will receive a rebate approximately £2705.84.

Please note that should you wish to accept this offer, your monthly loan repayments will remain the same, which means that you will repay your loan earlier."

Like the previous loan agreement/letter, I'm confused.

Their first paragraph states the policy was not mis-sold to me, etc... Their 3rd paragraph states I'd receive a rebate of the time I've had the policy (i.e. 20 months). Their 4th paragraph states a figure of £1832.20 but I would be getting a rebate of £2705.84. And their last paragraph states my term will be reduced but my payments will remain the same. I thought if my PPI has been cancelled, the PPI amount will be deducted from the monthly installments!?!

Please help

di3004

Hi there

Just a thought and suggestion if you have not done so, but have you requested for a Subject Access Request (SAR), where they have 40 days to send everything they hold on the account(s), there is a charge of £10 postal order or cheque payment required for this, and a template letter here:
http://forums.moneysavingexpert.com/showthread.html?t=1475553
If you do this then I would post by recorded delivery for your proof of posting here, the £10 covers for everything Lloyds will hold on you.

Address I used here:

LLOYDS TSB BANK PLC
DSAR TEAM
CUSTOMER SERVICES
RECOVERY TEAM
CHARLTON PLACE C57
ANDOVER
HAMPSHIRE
SP10 1RE

Maybe or hopefully something will come back within the SAR where you should find all details of all PPI taken out and rebates and so on.

If your not happy with the decision you should be able to write back to them, and maybe ask them to reconsider, or if you think something is amiss here write to ask them this as well.
But again hopefully the SAR will be of some help.

With a bit of luck others will post up some advice for you as well, good luck and please let us know how you get on, cheers.;)

DevilDamo

Hi Di,

No I have not requested an SAR but I will do that straight away

As I mentioned in my post, they state they did not mis-sell the policies to me and it seems that is why they're not doing anything about the PPI I have paid to date but will deal with the PPI I would have to pay from now until the end of the loan(s). Is that right?

di3004

DevilDamo wrote: »

Hi Di,

No I have not requested an SAR but I will do that straight away

As I mentioned in my post, they state they did not mis-sell the policies to me and it seems that is why they're not doing anything about the PPI I have paid to date but will deal with the PPI I would have to pay from now until the end of the loan(s). Is that right?

Hi hun
Hopefully the SAR will be useful then.

You can write back and tell them your not happy with their decision and request they reconsider with your reasons, maybe if you have time to wait for the SAR first see what comes back, just in case you have something else to prove you can send them in copies to support your case and remember if they still don't uphold in your favour you can always move this on to the Financial ombudsman service (FOS).

Lloyds TSB are well known to fob off with this response, keep at them.


I don't think you should be paying the same to be honest after cancelling, I would write back to complain on this, it should be reduced at least, because even if cancelled the PPI should be removed, even though they say about giving you a certain amount, your will still be paying for the PPI, I would not accept this to be honest and would request they reduce your payments.

di3004

I would write something like

" Thank you for your letter dated XX/XX/XXXX.
However, I do not fully agree with your decision.

You have confirmed that my repayments would still stay the same, even though you will refund the amount of £... ..., but even when this is done, I will still be literally paying for the Payment Protection Insurance.
I do not agree with this and am requesting that you reduce my loan without the PPI, as if I am just paying for the loan only.

I understand that if I will be paying the same then I will still be out of pocket, so again being deprived of my money.

If your unable to do this, then I will have no option but to take this to the Financial ombudsman service (FOS) for them to investigate this matter with copies of my evidence to support my case, and expect to hear from you within 14 days of this letter.

.......................................................................................
That is an example, but I do not agree with them to be honest because its just like you will still be paying out for the PPI.

DevilDamo

Hi Di,

Thank you for your advice.

I'm sure all banks (and not only Lloyds TSB) add this to the end of such letters...

"You should be aware that this is our final response and as such your complaint will now be closed. In the event you do not accept the offer then should you wish to do so, you do have the right to refer your complaint to the Financial Ombudsman Service (the FOS)."

And it says I have six months to do that.

di3004

DevilDamo wrote: »

Hi Di,

Thank you for your advice.

I'm sure all banks (and not only Lloyds TSB) add this to the end of such letters...

"You should be aware that this is our final response and as such your complaint will now be closed. In the event you do not accept the offer then should you wish to do so, you do have the right to refer your complaint to the Financial Ombudsman Service (the FOS)."

And it says I have six months to do that.

Your welcome hun.
Yes your correct.;)

Okay they have closed your case as it seems, so you can take along to the FOS now if you want to, but in regards of how they expect you to still be paying out the same, I would write back to them about this as a new complaint.
Its up to you, however I note that you have accepted on an offer as well, but if these were treated separately and you do not agree with the others then move on to the FOS with copies of correspondence you have received, you can ring the FOS for complaint forms or download and print online.
http://www.financial-ombudsman.org.uk/consumer/complaints.htm

If you have not received final decisions on all of them then you can write back to them to ask for them to consider.

DevilDamo

Ok a slight update to this thread. Lloyds have sent me a statement for my personal loans and loan protection insurance. It contains the date of the letter/statement, the period covered, the loan provided date, the interest rate and the term of agreement.

Now... what am I meant to do with this as this only tells me the dates in which I have paid the loan installments... but no PPI figures, etc... Do I just send this to FOS with a covering letter?

di3004

DevilDamo wrote: »

Ok a slight update to this thread. Lloyds have sent me a statement for my personal loans and loan protection insurance. It contains the date of the letter/statement, the period covered, the loan provided date, the interest rate and the term of agreement.

Now... what am I meant to do with this as this only tells me the dates in which I have paid the loan installments... but no PPI figures, etc... Do I just send this to FOS with a covering letter?

Hi there
How annoying, this isn't telling you much is it?

I would ring them and tell them this is not exactly what you requested for.

Just a thought, but did you ever request a Subject Access Request (SAR), where with payment of £10 postal order or cheque payment, they should send you all they still hold on you, and they have 40 days deadline to comply with this.

It may help, because useful info that you require may be enclosed within the SAR information.
If you want to do this then there is a letter template of a SAR here:
http://forums.moneysavingexpert.com/showthread.html?t=1475553

Hopefully you will receive your SAR info before 40 days, its entirely up to you of course, and anything to help support your case, you can then send copies to the FOS within the complaints form if you want to go this direction.
http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Hope this helps, please keep us posted and ask for help as well, good luck.;)

DevilDamo

Hi Di,

I used that exact letter template and all they sent me were those statements. I thought it was a bit strange as for the £10 I sent them, I could have found that information out myself.

So I best call them up and tell them my letter and cheque was NOT for those summarised statements but for ALL information on accounts/cards/loans I have with them.

DevilDamo

Update...

I was going to give Lloyds a call asking where my data was but I got home from work this eveing and outside my door was a large package delivered by DHL. At first, I didn't know what it was, so I opened it to find it's ALL my information Lloyds hold on me.

So now I have hundreds and hundreds of pages of information, what do I do with it? Where do I start? Haha!