Help with PPI on defaulted loans

pampam

I have posted this on another thread but I thought it may be better on it's own as it is a bit complex.

Can anyone advise me please.
I am helping my son & his partner reclaim their bank charges which is all going according to plan "I Hope!"
However I need help with this PPI thing.

Brief details are:-
Sons partner took out 3 loans with Lloyds TSB as follows.

Loan 1
3/7/01
£2000 advance
PPI £306.70
APR 19.8%

Loan 2
13/1/03
£2000 advance
PPI £497.72
APR 17.9%

Loan 3
12/4/02 £5000 advance
PPI £1174.84
APR 14.9%

She has defaulted on these loans and the case has been to court. Unfortunately she did not attend the hearing and did not tell my son about the debts.
The court ordered her to pay £125 per month in her absence.
I have since negotiated this figure down to £5 per month as she is not working at the moment due to a nervous breakdown. I tried to claim on the PPI for her illness but was unable to do so as she just gave up her job in 2004 but did not sign on as being ill.

She currently owes approximately £8500 on this debt.

She states that the bank used to phone her on a regular basis and ask her if she wanted to borrrow more money. This was done in spite of her already being well into her overdraft, well past her credit limoit on her C Card and in arrears with mortgage and loan payments.
She says she was not aware that she had signed for PPI, but admits that she was in such a desperate situation that she would have signed anything.

I want to try and get at least some of the PPI back for them if I can.

Can anyone help compose a letter and should I send it to Lloyds or to their solicitors. Or should I just take the case back to court and let the judge decide.

Any help and advice greatly appreciated.
Thanks
Pam

Rafter

Pam,

Unfortunately giving up your job is not a valid trigger for a payment insurance claim. A medical condition is and you could try and see whether any medical records exist which might support your arguement with Lloyds.

Unfortunately neither the APR's or the PPI rates on the loans could be described as extortionate, although I agree with you that Lloyds were irresponsible continuing to lend to a customer who was obviously unable to make repayments.

I would suggest that some sort of repayment plan would be the best thing to write off some of the debt and leave them with manageable payments to clear over the next 5 years. Bankruptcy doesn't seem to be an option because there is a house and mortgage (presumably with equity in it) involved.

I don't think you have any grounds to get the ppi removed, simply get some of the debt cancelled and get them both back on an even keel.

Good luck.

R.