Rejected by FOS

michelle45_2

I had a claim with Lloyds TSB for 2 loans and a credit card all for the same reasons. My claim for the loan were upheld but rejected for the credit card, so off went a claim form to the FOS.

6 months later I have just received a call from FOS saying that they do not think I have a claim and will be putting it in writing.

Where do you think I should go next or should I give up.

The reasons were that because I work for the NHS, I was double insured cos I had a good sickness and redundancy package, had a previous illness which meant I couldnt claim for, wasnt informed there were cheaper products on the market and basically told all the pros for taking this product out.

What I cannot understand is if Lloyds TSB Loans paid out because of the above reasons why arent the Credit Card department, surely they must be working from the same guidelines.:(

di3004

michelle45 wrote: »

I had a claim with Lloyds TSB for 2 loans and a credit card all for the same reasons. My claim for the loan were upheld but rejected for the credit card, so off went a claim form to the FOS.

6 months later I have just received a call from FOS saying that they do not think I have a claim and will be putting it in writing.

Where do you think I should go next or should I give up.

The reasons were that because I work for the NHS, I was double insured cos I had a good sickness and redundancy package, had a previous illness which meant I couldnt claim for, wasnt informed there were cheaper products on the market and basically told all the pros for taking this product out.

What I cannot understand is if Lloyds TSB Loans paid out because of the above reasons why arent the Credit Card department, surely they must be working from the same guidelines.:(

Hi Michelle

Sorry to hear this.

But you should however, have the chance to have this reviewed by the ombudsman himself, the adjudicator normally passes it on to them.
If this have not been mentioned, then contact them to make sure of this and gather as much further info possible, explain like you have done above, all this will be taken into consideration.

Hope this somewhat helps, decisions have been known to be overturned by the ombudsman within good reasons for your reclaim.

Please keep us posted and the very best of luck.:);)

dunstonh

The reasons were that because I work for the NHS, I was double insured cos I had a good sickness and redundancy package, had a previous illness which meant I couldnt claim for, wasnt informed there were cheaper products on the market and basically told all the pros for taking this product out.

Working for the NHS does not mean you were mis-sold. PPI plans can still pay out if you have good sick pay. Indeed, in some cases the ability to exceed 100% of earnings can exist depending on where the money is paid (i.e. not paid to you but paid directly to the debt). A previous illness does not mean you couldnt claim. It may or may not have added a restriction (depending on the illness) but without info, you cant assume you would be rejected.

Also, there is and never has been any requirement for tied insurance providers to tell you about other products that may be available. Cheaper is not always better.

So, in respect of your points based only on the limited information you have given, there does seem to be good reason for them to have rejected your complaint. Of your three points, only the first two are potentially relevant and if the insurer tells the FOS it wouldnt have prevented a claim then you are wrong in your reason for complaint. The last point you raise is an internet myth that often appears on template letters but is totally irrelevant.

machine22

In my opinion, although being an NHS worker wouldn't have stopped you using the insurance, it is an important factor.

If it was an 'advised sale' e.g. you felt they were recommending the product, the lender had to make sure that it was a suitable product for you and your circumstances. Why do you need sickness / accident cover if you get full pay for six months and then half pay?

Lloyds credit cards PPI often just paid 5% of the balance per month for a claim which means it was of limited use.

Ask someone you know if they feel they should take out PPI and most people will say 'I feel safe in my job' I don't need it. Were you in 'secure' employment?

The FOS have to make a judgement call as to wheather the advice was suitable given all these factors.

Like all judgement calls it's a balance and can be swung depending on how strong each point is. E.g if the pre-existing condition was asthma it will count for nothing and if it was reoccurring heart attacks it will probably show mis-selling.

The balance is more easily tilted in favour of the consumer for loan PPI because there are more hidden costs. Dunstonh is right that lenders didn't have to tell you that 'better' products could be bought elsewhere, only that the particular product in question was suitable for you.

roonaldo

michelle45 wrote: »

The reasons were that because I work for the NHS, I was double insured cos I had a good sickness and redundancy package, had a previous illness which meant I couldnt claim for, wasnt informed there were cheaper products on the market and basically told all the pros for taking this product out.

So you expect the checkout person at Waitrose to say go to Asda, its cheaper? Lloyds TSB wil only sell Lloyds TSB products and are not going to advise you on other banks.

Sick pay and redundacy is also not a reason to not take insurance.

cs1

Your claim for the Credit Card PPI may have been rejected as a Personal Loan PPI product and a Credit Card PPI product are paid for in different ways.
Usually the Personal Loan PPI is front loaded and your pay interest on it for the term of the loan. With a Credit Card policy it is paid monthly so the cost is not as great. Also, depending on your bank, you would not see another piece of paperwork that reminded you that you had PPI on your loan. With a Credit Card it is on your statement every month so a customer is aware they have the product. As a call have not been made to the Credit Card company to cancel the policy the assumption may be that the policy was still suitable as the payment is visiable on the statement and no query has been made.