Send your questions to Lloyds on PPI

marshallka

A question for LLoyds and all other banks.

Why have you stopped offering ANY insurance now alongside loans? If you believed in "insurance" and it was never for profit alone (single premiums) then why not offer stand alone insurances with no interest? (sold correctly of course and signed off by members of staff that could be held accountable personally!!)

BarnacleBill_2

My partner and I applied for a loan from LLoyds and was sold Life Insurance to cover the loan in the event of her death. We believed it was necessary to obtain the loan. Is this Life Insurance reclaimable?

magpiecottage

BarnacleBill wrote: »

My partner and I applied for a loan from LLoyds and was sold Life Insurance to cover the loan in the event of her death. We believed it was necessary to obtain the loan. Is this Life Insurance reclaimable?

Life cover is not PPI but can still be missold.

However, a lender can insist on life cover as a condition of the loan.

magpiecottage

Alpine_Star wrote: »

I can only assume that magpiecottage is either dyslexic or is AKA Lloyds TSB.

I am neither. I am simply answering some of the questions which do not require specific answers from Lloyds TSB in the interview, leaving Guy free to ask those that do.

If they are not relevant to you that's fine. I am providing comment in the hope that they will be helpful to some.

magpiecottage

marshallka wrote: »

A question for LLoyds and all other banks.

Why have you stopped offering ANY insurance now alongside loans? If you believed in "insurance" and it was never for profit alone (single premiums) then why not offer stand alone insurances with no interest? (sold correctly of course and signed off by members of staff that could be held accountable personally!!)

The reason banks are giving for pulling out of giving advice is compliance cost. An investigation a few months ago estimated that a bank would need to charge about £250 per hour for giving advice just to break even (and then the government would want an extra 20% on top). In other words, all the protections that consumers want when they get advice will cost them £5 per minute!

So it is not commercially viable.

Costs for IFAs are lower because the £250 includes overheads that they will not incur but £200 per hour is not uncommon.

marshallka

magpiecottage wrote: »

I am neither. I am simply answering some of the questions which do not require specific answers from Lloyds TSB in the interview, leaving Guy free to ask those that do.

If they are not relevant to you that's fine. I am providing comment in the hope that they will be helpful to some.

What sort of questions would be good in the interview then if all the ones that you have answered already are not relevent (although Guy has not specified which type he wanted people to ask?)?
I would think that this is more a general joe blogs type questions and answers than ones that require you to know the FSA Handlbook inside out and legalities of claiming back missold PPI?
I would have liked to hear Lloyds View on some of the questions on here!

susie_babes

Hi, I have written to the Halifax regarding claiming my P.P.I back from a previous loan, how long should it take from sending the initial letter to them replying to me. I sent the letter 3 weeks ago but have not heard from them at all

src007

magpiecottage wrote: »

The reason banks are giving for pulling out of giving advice is compliance cost.

So it is not commercially viable.

Whats the point of the bank selling insurance if they can't mis-sell it? :rotfl:

You think its not commercially viable to give good advice? Really?

Compliance cost is a very varied amount for each organisation. Nationwide have only set aside £10 million for PPI mis-selling, which is tiny compared to Lloyds.

Those that don't mis-sell, don't have to pay very much. I know you're going to write some scathing attack on CMCs saying that they're the only reason compliance cost are so high but maybe just maybe they're targeting an area of wide spread consumer detriment?

If you mean that PPI has been so widely mis-sold that its tarnished the whole industry to the point that PPI can't be sold any more, maybe your right. This is why the competition commission are introducing a point of sale ban.

amersall

susie_babes wrote: »

Hi, I have written to the Halifax regarding claiming my P.P.I back from a previous loan, how long should it take from sending the initial letter to them replying to me. I sent the letter 3 weeks ago but have not heard from them at all

Hi there, they have a backlog at the moment, but if i were you i would ring and confirm that they have recieved this.
They have 8 weeks to respond and i would have thought by now you would have recieved a confirmation letter.

magpiecottage

src007 wrote: »

You think its not commercially viable to give good advice? Really?

As I say, it works out at about £250 per hour (excluding VAT) for them to break even. Much of this is the regulatory cost - including paying the FSA and FOS who, for reasons best known to themselves have chosen to locate themselves in some of the most expensive office space in the world

Compliance cost is a very varied amount for each organisation. Nationwide have only set aside £10 million for PPI mis-selling, which is tiny compared to Lloyds.

That is redress provision, not compliance cost

Those that don't mis-sell, don't have to pay very much.

Oh yes they do. They have to pay for the FSA's plush offices in Canary Wharf and those of FOS round the corner.

They have to pay levies to the Financial Services Compensation Scheme to bail out customers of other companies that have gone to the wall.

I know you're going to write some scathing attack on CMCs saying that they're the only reason compliance cost are so high

I did not say that but it is true that plenty may unwarranted complaints and tell porkies entail considerable resource.

but maybe just maybe they're targeting an area of wide spread consumer detriment?

Out of the kindness of your hearts? I don't think so.