Lloyds TSB PPI - Online Loan sales

A.B.

Dear All

Sometime ago we applied for a loan from Lloyds TSB online, our preferred option was to go without PPI because it is basically a substantial proportion of the amount you have to pay back.

However, when we tried to apply for the loan online without the PPI (several times) it either came up with an error message or asked us to call a number (I suspect this was to hard sell the PPI to us by making us call the call centre). As a trial we applied with the PPI included, and low and behold it went through!

My understanding is that the banks can not approve a loan only if you take out the PPI - is this true?

If it is the case, it would be helpful to hear from other people who have experienced this with Lloyds.

Regards

AB

di3004

A.B. wrote: »

Dear All

Sometime ago we applied for a loan from Lloyds TSB online, our preferred option was to go without PPI because it is basically a substantial proportion of the amount you have to pay back.

However, when we tried to apply for the loan online without the PPI (several times) it either came up with an error message or asked us to call a number (I suspect this was to hard sell the PPI to us by making us call the call centre). As a trial we applied with the PPI included, and low and behold it went through!

My understanding is that the banks can not approve a loan only if you take out the PPI - is this true?

If it is the case, it would be helpful to hear from other people who have experienced this with Lloyds.

Regards

AB

Hi and welcome AB.

I have only taken out finance with Lloyds face to face but blimey that seems like a strange one, although it does not surprise me with it being Lloyds TSB, hopefully someone will post who have been in the same situation as you.

I would about mention this on your reclaim letter as well.

Wonder if anything will come up if you requested a Subject Access Request (SAR)?
For more details on this with a template to request for all info they hold on you here:
http://forums.moneysavingexpert.com/showthread.html?t=1475553
There is a charge of £10 postal order or cheque payment required for this, and they have 40 days to comply.

In regards of reclaiming, more info with template letters here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
They have 8 weeks in full to respond.

Good luck, please let us know how you get on and yell for help anytime too.;)

Di

A.B.

Thanks.

I think I will request a SAR (I included a summary of the way in which the online loan was sold to me, in my initial letter to Lloyds). My original letter was sent to them, over 10 months ago – only when I threatened them with a deadline of 15 February to go to FOS, did I get a reply.

I get the feeling that Lloyds expect that the vast majority of their customers will not sustain the complaint throughout the lengthy procedure.

I am still find difficulty locating the guidance/legislation that governs the selling of PPI, I have previously read articles that suggest that selling PPI on a compulsorily basis (with the loan) is not permissible, and that a loan should not be approved based on taking out PPI. As the FSA regulates these firms on a “principle-led” basis (no easily understandable rules/regulations) – and the FSA Handbook is a nightmare to get your head round, I am unable to substantiate my argument.

However, given these circumstances, and the fact that several attempts were made to get the loan without the PPI (but failed – well, failed to be approved straight away), would (to me) seem to suggest Lloyds TSB maintained a policy of approving loans with PPI more easily than those without. Moreover, as the loan was instantly approved, when the PPI box was left checked, I find it difficult to accept that the PPI was anything but compulsorily.

My difficulty now would be to prove that several attempts were made to get the loan approved without the PPI – but I would think that the FSAs prescriptive rules in relation to record keeping, hopefully their systems, would have recorded these attempts.

I have received a reply from Lloyds regarding another loan taken out face-to-face, where they concede the point and have offered a refund. However, in that case it is abundantly clear the PPI was not wanted (the relevant box is not ticked on the paper work).

I fear that Lloyds will not change their tactics until they receive a fine from the FSA but the whole way they are going about things is unacceptable.

They are an absolute nightmare – but I would suggest that people not give up and I will keep you all posted on the results of this process.

P.S. If there is anyone out there who has had a similar experience (i.e. loan not being approved straight away until the PPI box checked online) – it would be really helpful to hear from you – if only to provide independent proof that Lloyds TSB operated this way.

robbedofmymoney

the same as me in 2005,

applied online, did not want PPI, I then had to phone a number and low and behold i was hard sold the PPI and the loan accepted straignt away.

however i am still awaiting the phone recordings that they promised me to confirm the conversations, ( i doubt will ever get them )

i too have requested a SAR to confirm the bit about not ticking the box online for PPI which i never did as my ppi was sold over the phone.

A.B.

Thank you for this, this is exactly what I mean. More people who have had this happen to them comming forward would really help our and many other peoples cause.

We are progressing to FOS. There are actually two cases where PPI was missold to us, the first the internet one, the second face to face.

With the second it is clear from the paper work that the PPI was not wanted (as the box is not checked and we have a copy of that agreement) but the cost was added - I think that this may be bordering on fraud (although I admit my knowledge on the criminal legislation is very limited).

It is also good to hear that the OFT is also investigating these types of practices (see this website - out-law dot com forward slash page-10736).

I think it is about time the Lloyds learnt that it cannot act with impunity.

Regards
A.B.

di3004

My hubby still waiting for his ppi refund, he signed the acceptance with the FOS in Oct-Nov 2009 and we are still chasing for his refund now!


I'm sure the FOS will resolve this for you, good luck with this.;)