Lloyds TSB LPI

kel0811

Hi

I took out a loan in Nov 2007 and i took out LPI, this was my own fault for not reading my paperwork! However I have 12 months left on my loan so i just rang them up to cancel the LPI. The forst adviser told me that if i cancelled it they would have to restart my loan and the APR would go from 16.9 to 24!!!! Which means my payments would go up and i wouldnt have the LPI

I rang up a second time and i got told that my payments would stay the same because i have already payed for the LPI so there was no point in cancelling it. I some how find this hard to believe, she said you pay more for the LPI at the begining of the loan?????????

Basically they have me over a barrel and i have been paying over £26 a month for something i do not need

Does anyone have any experience of this?

Thanks
Kelly:(

di3004

kel0811 wrote: »

Hi

I took out a loan in Nov 2007 and i took out LPI, this was my own fault for not reading my paperwork! However I have 12 months left on my loan so i just rang them up to cancel the LPI. The forst adviser told me that if i cancelled it they would have to restart my loan and the APR would go from 16.9 to 24!!!! Which means my payments would go up and i wouldnt have the LPI

I rang up a second time and i got told that my payments would stay the same because i have already payed for the LPI so there was no point in cancelling it. I some how find this hard to believe, she said you pay more for the LPI at the begining of the loan?????????

Basically they have me over a barrel and i have been paying over £26 a month for something i do not need

Does anyone have any experience of this?

Thanks
Kelly:(

Hi Kelly

Are you going in for the reclaiming on the PPI as well for any reason?

This seems a strange one, to be told 2 different things, as you will still be paying for the insurance (with them not reducing the payments) etc.

I would check more onto this on the reclaiming, if you do not or did not need this and not to worry, we have all been there.

More info on Martin's link below, the guidelines of reclaiming PPI, template letters, a checklist of mis selling reasons, they have 8 weeks in full to respond.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Have a look and please ask for help as well anytime, it makes no difference if the loan is still active or not, you can still reclaim for any reason(s) you may have.;)

Good luck.

kel0811

Hi

I did my application online and i cant remember whether i had to select or di-select for LPI

Im not going to get hung up on the fact i may not be able to claim what ive paid back, but i find it hard to believe that i have finished paying for it 12 month before my loan is die to finish. It seems like thay just want me to keep paying it by telling me there is no point in cancelling it because i have already paid for it. Im Confused! and i think that waht they want

marshallka

kel0811 wrote: »

Hi

I did my application online and i cant remember whether i had to select or di-select for LPI

Im not going to get hung up on the fact i may not be able to claim what ive paid back, but i find it hard to believe that i have finished paying for it 12 month before my loan is die to finish. It seems like thay just want me to keep paying it by telling me there is no point in cancelling it because i have already paid for it. Im Confused! and i think that waht they want

Hi, if all you want to do is actually cancel the PPI then a new agreement is the usual way but it should really be at the same terms and APR as it was. You could try quoting them the treating customers fairly in that they are making you have a higher APR just for cancelling. Hardly fair??

kel0811

They are saying that i have already paid for it though so cancelling would not have any benifit to me? Even though i have 12 months left on my loan. I dont understand how i havee paid for the LPI before my loan has finished

tiggrae

kel0811 wrote: »

They are saying that i have already paid for it though so cancelling would not have any benifit to me? Even though i have 12 months left on my loan. I dont understand how i havee paid for the LPI before my loan has finished

this is quite common - it's called front end loading - basically although they give you a price per month for the loan / insurance elements - however, what they do is apply all the initial monthly premiums to paying off the insurance part - once this is done your monthly premiums go to pay the loan part - if you asked for an early repayment figure on your loan you'll be shocked to find you've paid very little off it as your money has been going to pay the insurance.

What I'd do is put in a claim for mis selling - you shouldn't blame yourself for not reading the paperwork - if you didn't ask for the insurance then it shouldn't just have been added on

ejc81

kel0811 wrote: »

They are saying that i have already paid for it though so cancelling would not have any benifit to me? Even though i have 12 months left on my loan. I dont understand how i havee paid for the LPI before my loan has finished

I'm about to attempt to reclaim my LPI for a loan I had with lloyds. What they used to do was sell you the LPI and add the amount to your loan so for example I took out a loan for £15,000 they added LPI which was £3000 <gulp>. Effectively Lloyds paid my insurance up front and added the £3000 to my loan making it £18,000. This also means I was paying interest on £18,000 instead of £15,000. To cancel the LPI they could refund me a small amount depending on how long was left on the loan, but I would need to take out another loan without LPI.

Sounds like your in the same place and I think they are not allowed to sell PPI like this anymore!

di3004

ejc81 wrote: »

I'm about to attempt to reclaim my LPI for a loan I had with lloyds. What they used to do was sell you the LPI and add the amount to your loan so for example I took out a loan for £15,000 they added LPI which was £3000 <gulp>. Effectively Lloyds paid my insurance up front and added the £3000 to my loan making it £18,000. This also means I was paying interest on £18,000 instead of £15,000. To cancel the LPI they could refund me a small amount depending on how long was left on the loan, but I would need to take out another loan without LPI.

Sounds like your in the same place and I think they are not allowed to sell PPI like this anymore!

Good luck with yours too, fingers crossed.;)