Help with a Lloyds Fixed Sum Loan

cheekyreddevil

Hi
Can anyone help with any advice about a loan that my Mum has with Lloyds. My Mum is 65 next month.
The loan is a fixed sum loan agreement with Lloyds TSB and was taken out in September 2006, total payback is £26,960.64, this was over 84 months.Loan £10,800 (19,332.60)
Loan protection insurance £4261.61 (£7628.04)

My Mum suffered a brain tumour and thankfully the LPI paid the loan, sadly the tumour left my Mum paralysed down her left hand side, which meant she could no longer work. Now gets by on benefits.

A couple of days ago a letter came from the LPI saying that as my Mum is 65 next month, they will no longer pay the loan as when you get to 65 the law states that they are unable to pay.
As of the 1st March Mum has to pay the loan herself out of her benefits!!!.

She phoned the bank Lloyds TSB who told her in no certain terms that no matter what the loan must be paid on the first of each month, they will take it out no matter what. They did say to get in touch with a company called consumer counselling, who will take all her details, then send them to the bank where in turn they will look at it and let her know if they can accept it.

Mum now owe's £10,449.53 and is worried to death about this..

Any help or advice in this would be very much apperciated...

Why do we bail out the banks yet they are unhelpful to us!!!!.

Cheers
Di x

[Deleted User]

I dont see how the bank is being unhelpful,what they say is perfectly correct and would have been quite clear in the ppi paperwork
has she btw claimed DLA?if not the time to act is now
I would suggest a visit to the CAB they can advise on both debt and benefits

jonesMUFCforever

Get someone to check the loan protection paperwork.
I'm sure there is some critical illness cover in there which might pay off the loan provided she had no symptoms prior to taking out the loan.

cheekyreddevil

jonesMUFCforever wrote: »

Get someone to check the loan protection paperwork.
I'm sure there is some critical illness cover in there which might pay off the loan provided she had no symptoms prior to taking out the loan.

Thank you for your help, we went to CAB today, they were very helpful (first time ever had to use them), the guy read through the cover and phoned them up. Turns out Mum is covered under critical illness cover, due to her symptons, they are sending a form for her to sign to carry on with the payment.
A real weight off our minds, thanks again jonesMUFCforever :j