Lloyds TSB PPI (Or LPI) advice - RESOLVED!

IanW1983

All, back in May 2006 I took out a loan with Lloyds TSB which included what is called in my statement, 'Loan Protection Insurance'. Am I right in thinking this is the same as PPI? And what are the chances of being able to claim this back?

On the documents I have from when I took the loan out, there is a 'Personal Summary and our Recommendation' sheet. The part I'm interested in is the following taken straight from said form...

Your Requirements and Need(s)

We discussed your situation and from the information you provided you have insufficuent insurance protection from existing insurance or other means to meet your repayments on this Personal Loan, should your circumstances change.

If during the course of giving advice about loan protection, other insurance needs have been identified, you should seek seperate advice to cover these requirements.

Recommendation

Our advisor recommended that as you have a need for insurance protection you should purchas Personal Loan Insurance in order that your loan repayments can be maintained or so that the loan is repaid in full.

Our Personal Loan Protection Insurance will allow you to cover your personal loan repayments should your financial circumstances change in the event of: -
Unemployment
Disability from an accident or sickness
Becoming hospitalised

In addition we will repay your loan in full in the event of: -
Death
Contracting a designated critical illness

Your eligibility to claim depends upon your circumstances at the time of the claim, details of which can be found in the policy summary and policy document, along with details of exclusions, limitations or conditions that might apply. We strongly recommend that you read these documents carefully.

You have a right to cancel your policy within 30 days and during this period we will refund any premium already paid, unless we have already been notified of a claim. Information on how to exercise your right to cancel can be found in the policy summary.

Having considered our advisors recommendation and having been advised that Loan Protection is optional and not a condition of taking out this loan, you have chosen to take Loan Protection Insurance.

Many many many apologies for quoting pretty much everything, but I wanted to be thorough and hopefully someone can advise as to what my chances of claiming anything back are?

I have a feeling the last paragraph will thwart my chances in all honesty?

Thanks for your time
Ian

halphy

Hi Ian, i am trying to reclaim LPI aswell from HSBC, I havent been refused as yet but awaiting to hear, u could try for it and send off the questionnaire. Was it a lump sum added to your loan?

IanW1983

halphy wrote: »

Hi Ian, i am trying to reclaim LPI aswell from HSBC, I havent been refused as yet but awaiting to hear, u could try for it and send off the questionnaire. Was it a lump sum added to your loan?

Good luck with your claim, keep us updated if possible!

Yes it was added to my loan amount, I have all the statements here as follows...

Cash Loan = 10214.23
Loan for Loan Protection Insurance = 2231.17
Total Loan = 12445.40

Total amount repayable (8.1%) = 15629.76

I was pretty niave when I took this out unfortunately as you can tell. Now I'm a home owner I'm desperately trying to get this paid off!

halphy

Yes im with u there, we were all niave!

Good Luck with it, im sure there will be others along to advise aswell x

di3004

Hi Ian and welcome

Many of us have had success against Lloyds TSB, but they can also be difficult, so keep at them and you will be okay.


There are a number of reasons to make a reclaim, check the list on the link below and if any of them apply to you then you have a claim.

Many assumed that the insurance was all part of the loan/credit card etc. Because not being informed any different, as it was not discussed.

So check the link below here:

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

There is a reclaiming FOS questionnaire you use to make a reclaim, these were replaced from the first reclaiming template letter and issued by the financial ombudsman service (FOS).

Complete and send to who set up your policy.

Remember to keep a copy as well, this is recommended by the FOS.

The company have 8 weeks in full to respond, they may ask for more time to investigate, that is fine, but if you hear absolutely nothing, your in your right to complain to the FOS by completing the FOS complaints form, you will find this on their website.
And you also do this if the company have not given you a decision in your favour by the final response.

The FOS questionnaire to make a reclaim on the above link posted, further down the page as stage one, good luck and ask for help when required.;)

IanW1983

Just a bit of an update on this one. Got a reply back from Lloyds last week, the letter is at home but the jist of it was that the insurance was actually supplied by another company (something I was unaware of?) and they have forwarded my complaint onto them and I should hear from this other company soon. They didn't say in the letter who this other company was though.

di3004

IanW1983 wrote: »

Just a bit of an update on this one. Got a reply back from Lloyds last week, the letter is at home but the jist of it was that the insurance was actually supplied by another company (something I was unaware of?) and they have forwarded my complaint onto them and I should hear from this other company soon. They didn't say in the letter who this other company was though.

Hi there

Thanks for your update.

I assumed with Lloyds it would be one of their own insurers.

Good luck with this and look forward to hearing the outcome.

Cheers

Di

IanW1983

Another letter so another update!

This letter was from Lloyds themselves again, actually it was from one of their 'Service Delivery Managers' which seems quite important? She says that she is very concerned by letter and has started an immediate investigation into my case. I will hear back from them in the next 4 weeks.

di3004

IanW1983 wrote: »

Another letter so another update!

This letter was from Lloyds themselves again, actually it was from one of their 'Service Delivery Managers' which seems quite important? She says that she is very concerned by letter and has started an immediate investigation into my case. I will hear back from them in the next 4 weeks.

Thanks for your update Ian, fingers crossed.;)

IanW1983

Had a letter back today from Lloyds and...


They've upheld my complaint and agreed to pay me the Loan Protection Insurance back!!!! :j:j:j:j

I propose to

A) calculate a refund of the PPI monthly payments that have paid to date and
calculate simple interest at 8% per annum on each of the PPI monthly payments

Really made up this has been sorted and many many thanks for the advice I got on here!

Not sure what the total amount I will receive will be, anyone have any ideas? Loan was taken out in May 2006. Personal loan was £10,213.23 with further borrowing of £2231.17

di3004

IanW1983 wrote: »

Had a letter back today from Lloyds and...


They've upheld my complaint and agreed to pay me the Loan Protection Insurance back!!!! :j:j:j:j



Really made up this has been sorted and many many thanks for the advice I got on here!

Not sure what the total amount I will receive will be, anyone have any ideas? Loan was taken out in May 2006. Personal loan was £10,213.23 with further borrowing of £2231.17

Well done to you!:j:T:j:beer:

I expect Robbedofmymoney will be able to check out the calculations for you.;)