Where do i start?

craig_hgt

sorry, this will be a long post covering quite a few subjects

I have two loan accounts with LxxxxxXXX.

On both of these i have PPI, albeit not through choice. At my first loan application there were three people present. Me, the advisor and another member of staff to 'ensure she does her job properly'

The cash element of the loan went smooth and they were both very helpful and polite and it didnt take that many minutes to get that part sorted. However, the PPI issue came up and i stated that i didn't want it as i was in a very secure job i had been there since i left school at 16 and still there 17 years later also, i was also looking at the possibility of running a small part time business of my own, i.e. wouldn't be keeping all my egg's in one basket.

Thats when the level seemed to lower in the room, it was put to me, what could i do for my family if i got ill made redundant or got ran over by a bus 'cos this will still need to be paid. It was also put to me that when a bank lends money it has to be sure that a person can pay it back and although they didnt directly say 'no PPI no loan' i was told that it was taken into consideration at application.
Both of the banks staff were taking turns at pressuring me into it, reluctantly i agreed because, as they stated, i could cancel the PPI at anytime and just continue paying the cash part of it.

The second loan application was not so intense as i only had one of them to deal with. Anyway, i decided that i wanted to buy a piece of equipment for my business that i was starting up from a spare room (£4000)

Now bearing in mind i hadn't ever run a business, i didnt know the procedures etc when applying for business loans so i just went into my local branch, i shown the guy the brochure with the piece of kit i needed thinking it would help, he just wanted me to put it away he didn't need to see it and now i know why.

I presume their employees get a commision per loan because i can't understand why he wouldn't direct me towards the business lounge. anyway he processed the loan knowing very well what it was for and put PPI on the loan despite me telling him i didnt want it because i would be self employed and i thought self employed would be excluded in the t's & c's , i only noticed it when i got home. The PPI was added when he presented me with all the paper work and i asked him why there was so much, he said it was 'just legal stuff'

i did phone the FOS about this but the guy on the other end couldn't work out why i was complaining, basically saying 'you asked for a loan and got one'

By the time the penny dropped about all of this and i got a rejection from lloyds about the whole thing i was virtually pulling my hair out (it's grey anyway)
so i did something stupid because i just felt so out of control that i cancelled my DD's for 6 weeks if i remember correctly putting one loan behind for one month and the other for two.

The trouble with me doing this, having checked my credit report both loans are showing red AP's for eight months on each completely screwing any prospect of me getting a mortgage up for approximatly the next eight to ten years so the bank still has the upper hand.

I have got the FOS to pursue the PPI as i wasn't happy about the bank firstly rejecting everything i accused them of and then offering a rediculous £500 when they are taking £100 a month in insurance i didnt want totalling to date £3500 i just want my PPI money back but considering the above, i'm not holding my breath :mad:

i guess my reason for posting this is to highlight to people that sometimes a bank won't work in your best interest and really you should do you homework ( i dont mean for that to sound patronising by the way)

Regards
Craig

loopy.magic

Oh dear, everything in your post was reading fine and the situation managable (you would have been able to reclaim at least some of your PPI payments) until the part where you cancelled your DDs, why?? What did you think this was going to achieve? You say you cancelled for 6 weeks, can you expand on this? were the DDs setup again? You may still be able to repair the situation or at the very least limit the damage to your credit rating.

Banks never work in your best interest, only their own and if, while they're making money from you, they happen to help you along they way then that's good PR for them.

Apples2

Did you make up the shortfall when you re-instated your DD's?

The problem is you fell behind by 1 and 2 months respectively.
When you started the DD back up again you were in effect, paying for previous months payments (every payment is 1 month behind for the first loan and 2 months behind for the second).

This is why you are getting repeated late payment markers appearing, you are always in arrears.

You need to make up those missed payments AND cover the addional fees/charges you incurred for the lates/missed.

The PPI issue is quite common. I recall getting the hard sell several times but stuck to my guns even when they said I may be rejected. I just assumed in those days if they said no, I would go elsewhere. Of course we all know it was all sharp practise anyway so I never did get a rejection.
This is the argument now, they offered it, you accepted it.

The PPI reclaim board will be able to advise more accurately but bear in mind, the contract was broken when you missed a payment.

craig_hgt

This is another annoying part of it, the contract has to be adhered to by me in every respect, however when i told them in the early days i wanted to use the infamous section 1.4 which clearly states i can continue to pay for the cash loan if i decide to cancel PPI, yet when i called they said i would have to refinance.

roughly at this time my loans are,
£150 monthly to repay the cash loan
£50 monthly in PPI

with their refinancing i would be paying £202 a month and having the length of the loan shortened to pay it off earlier. my argument here is, section 1.4 says nothing about this. I, and most people would take this as paying £150 a month.

with respect to business use, i phoned my bank to ask why they made no reference to why they didnt advise me to go to the business lounge, really i didnt get anywhere. However i was curious as to what the guy filled in the box on the computer "Purpose of loan" the helpful lady took a while to reply and finally answered it had not been recorded. When asked if that was normal for it to be unrecorded, she said no.

a question i would like to ask is this, have they broke any contract by offering this loan on this basis? i realise from what i have read on the internet i should just let this drop because they could say i lied about the purpose of the loan, cancel it, and request payment in full. but its so blxxxx frustrating that my bank is not answerable for anything.

The other point is, my credit report creates a misleading impression that i didnt pay a penny for eight months when in fact i was a month or two behind for eight months (if that makes any sence)

i think the reality is here that i need to work all hours and get these accounts settled asap, and wait for the 6 yrs to pass.

Thanks to everyone who has replied, its been useful and an eye opener also, i have actually learn't something for instance i didnt actually know i broke a contract!

Cheers
Craig