Could someone help me with a Lloyds Tsb loan PPI please

marshy27

Right i've typed out the letter. Im not very good at wording things so could you guys take a look and let me know what you think please?

I purchased the above policy from you on 00/00/0000 but now believe that I was mis-sold this policy for the following reasons.

On * January I contacted you to have the Payment Protection Insurance on my loan removed and you informed me that I couldonly cancel the policy if I took out a new credit agreement. As the FSA has now stated ‘no refund’ terms are considered unfair I would like my original cancellation request to be honoured.

During the process of taking out the personal loan it did not state anywhere that to remove the PPI, I would have to cancel the loan and take out a new credit agreement. Had I known this was the process I would not of taken out the PPI policy.

Also, if I was made aware at the time taking out the PPI policy that I would be able to take out a policy elsewhere, again, I would not of taken out the policy with yourselves.

Because of the above reasons I believe that you have not sold me the PPI in my best interests.

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.
I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

Yours faithfully,

What do you guys think?

di3004

In my view Marshy27 that is fab, well done.:T

Keep at them as well, sometimes you get the opportunity to write to them again with further info if required - if they do not uphold with the first letter.

As I always say as well......use recorded delivery lol.....:D, good luck.

marshallka

marshy27 wrote: »

Right i've typed out the letter. Im not very good at wording things so could you guys take a look and let me know what you think please?

I purchased the above policy from you on 00/00/0000 but now believe that I was mis-sold this policy for the following reasons.

On * January I contacted you to have the Payment Protection Insurance on my loan removed and you informed me that I couldonly cancel the policy if I took out a new credit agreement. As the FSA has now stated ‘no refund’ terms are considered unfair I would like my original cancellation request to be honoured.

During the process of taking out the personal loan it did not state anywhere that to remove the PPI, I would have to cancel the loan and take out a new credit agreement. Had I known this was the process I would not of taken out the PPI policy.

Also, if I was made aware at the time taking out the PPI policy that I would be able to take out a policy elsewhere, again, I would not of taken out the policy with yourselves.

Because of the above reasons I believe that you have not sold me the PPI in my best interests.

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.
I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

Yours faithfully,

What do you guys think?

I would perhaps check on the NIL refund bit that you have put here as I think they would most probably rebate you a small amount like they have to if you only cancelled the insurance. They take it off the "then" balance of the loan remaining and open up a new one with the new balance and reduce your repayments BUT your repayments would not reduce to what you would pay if the PPI was on the agreement as the rebate would only be of the policy itself and not the interest on it.

I have just looked back at your post and they have actually offered you a rebate against the insurance as your new loan has less of a repayment. Personally I would take that bit out about the FSA on NIL refunds as this could lose you complaint in that they will argue that they have actually given you a rebate or offered you one.

They would calculate the loan amount to the date of your cancelling the PPI and then take an amount away (only a PRO rata refund) and then do another loan without this PRO rata refund. Of course your new loan then would have lower repayments, which is what they have said here so they have not offered you a NIL refund.

Quoted here from what you said in your first post.

This is exactly how it is on the loan agreement i have. The reason im writing this is that i wanted to cancel the loan protection but continue paying the loan. So i was expecting to pay about £42.13 (less the interest) less a month but if i do cancel it only £15 comes off. So i'll still be paying £188.77 a month.

marshy27

marshallka wrote: »

I would perhaps check on the NIL refund bit that you have put here as I think they would most probably rebate you a small amount like they have to if you only cancelled the insurance. They take it off the "then" balance of the loan remaining and open up a new one with the new balance and reduce your repayments BUT your repayments would not reduce to what you would pay if the PPI was on the agreement as the rebate would only be of the policy itself and not the interest on it.

Ah yes thanks. Just looked at the letter and it says i'll get £143 rebate on the PPI. I'll just delete that and see what they say about the rest of it.

marshallka

marshy27 wrote: »

Ah yes thanks. Just looked at the letter and it says i'll get £143 rebate on the PPI. I'll just delete that and see what they say about the rest of it.

Brilliant, you don't want to mess it all up in the beginning.

marshy27

marshallka wrote: »

Brilliant, you don't want to mess it all up in the beginning.

This any better do you think?

On * January I contacted you to have the Payment Protection Insurance on my loan removed and you informed me that I could only cancel the policy if I took out a new credit agreement, if I was made aware of this at the time of taking out the loan I would not of chose the PPI.

If I also was made aware at the time of taking out the PPI policy that I would be able to take out a policy elsewhere, again, I would not of taken out the policy.

During the process of taking out the personal loan and reading the terms and conditions and policy booklet it did not state anywhere that to remove the PPI, I would have to cancel the loan and take out a new credit agreement.

It does however state in my credit agreement under ‘AVAILABILITY OF LOAN’ and I quote “If you decide to cancel the LPI policy the LPI loan will also be cancelled. The cash loan WILL CONTINUE and we will collect ONLY the monthly repayment for the cash loan. It does not state the CASH LOAN will have to be cancelled.

Because of the above reasons I believe that you have not sold me the PPI in my best interests.

Unless you can satisfactorily justify to me that the policy was fair and reasonable I am requesting a full refund of all premiums, and subsequent interest on these payments, that I have paid to date. As I believe I have been deprived of this money I also expect 8% statutory interest, the amount a court would award, to be added to each payment made.

I look forward to a full and prompt response to this letter and for the matter to be concluded within eight weeks or I shall be contacting the Financial Ombudsman to investigate my complaint.

Yours faithfully,
　
　
　　

marshallka

That sounds good marshy27.

marshy27

marshallka wrote: »

That sounds good marshy27.

I was hoping you'd say that as i sent it off already lol.

Thanks very much for your help and advice, its been much appreciated.