Tick the box

FlySi

Hello.
I'm helping my parents review their loans and the PPI taken out on them and I've come across what I think is a 'grey area'. It's a loan with Lloyds TSB from 2006 and the recommendation was that my retired parents take out PPI. On the one hand, the PPI included unemployment cover, so I think that a case can be made that the PPI was unsuitable at the get-go. However, the grey area relates to the signature panel - the agreement states explicitly:

'I wish to purchase Loan Protection Insurance [ ] (please tick)'.

My father did NOT tick the box but did sign and date in the box where necessary. I know from my own experience that you sometimes sign (or initial) and date repeatedly so it could be that Dad didn't realise he had to tick. Could anybody suggest where this leaves us? Does the fact that Dad signed show intent to take the insurance?

Any help would be gratefully received.

DrSqueeze

It's possible to argue both ways, but if you're making a complaint about misselling then I'd approach it from the angle that "The form asks the customer to tick a box in order to request PPI cover. The box was clearly not ticked."

As there are other grounds why the PPI cover appears to have been unsuitable, this will reinforce the argument.

FlySi

Thanks for the advice Dr Squeeze. Would you be kind enough to answer a few more questions? It's quite a confusing situation - I've uncovered more information and it just seems like a case of the blind leading the blind. What complicates the situation is that three years into a loan my parents 'topped it up', thereby paying off the original loan and opening a new loan account with PPI, etc. Again, for reasons beyond their control, this was topped up again a year later and then again last year. Where does this leave claims against the bank over mis-sold PPI? Does it have to be individual claims per policy, etc.?

Fundamentally, my father had insurance through the company he retired from and this covered him (rather substantially) in the event of anything unfortunate happening to him. The bank were aware of this but still PPI was added to the policy. On this front I'm fairly certain that a case can be made for the policy having been mis-sold. Am I right? Also, it appears that the PPI was in my father's name but on a loan in joint names. As I understand it from advice pages on reclaiming PPI, the banks shouldn't really do this. There is a disclaimer of sorts, however, on the loan agreement that says that PPI is only available to first person (ie, my father). Does this exempt the bank or not?

DrSqueeze

FlySi wrote: »

Where does this leave claims against the bank over mis-sold PPI? Does it have to be individual claims per policy, etc.?

If it's all with the same bank, I would make a single complaint covering all the loans. The PPI should have been reviewed every time a new loan was set up, to check whether it was still needed and whether the customer was still eligible. After all, peoples circumstances and needs change.

Fundamentally, my father had insurance through the company he retired from and this covered him (rather substantially) in the event of anything unfortunate happening to him. The bank were aware of this but still PPI was added to the policy. On this front I'm fairly certain that a case can be made for the policy having been mis-sold.

It certainly sounds like there are grounds for a complaint. Have a look through the guide for more information: http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

There is a disclaimer of sorts, however, on the loan agreement that says that PPI is only available to first person (ie, my father). Does this exempt the bank or not?

I'm not certain on that point, but it's worth adding a comment in the complaint.

FlySi

Thanks very much for that help. I'm still trying to find some information on various aspects of all of this. Does anybody here have any similar experience of this sort of thing? I'd be interested to learn of similar instances where the loans have been paid off, etc. and reopened.

FlySi

I've come across a strange issue dealing with my parents finances. As I've said before, I'm dealing with a loan which was consolidated/topped-up on more than one occasion. The issue is this: The original loan was in joint names but the subsequent loans were in my father's name. Neither of my parents can remember any mention of the loans being changed to a single loan and my mother didn't sign anything to agree to her being taken off the initial loan. What does this mean? Does anybody have any experience of anything similar?

DrSqueeze

FlySi wrote: »

The original loan was in joint names but the subsequent loans were in my father's name. Neither of my parents can remember any mention of the loans being changed to a single loan and my mother didn't sign anything to agree to her being taken off the initial loan. What does this mean? Does anybody have any experience of anything similar?

A few possibilities present themselves:

1. An error was made on the second loan and not noticed

2. A decision was made by your parents to have the loan in one name, which they've subsequently forgotten

3. The second loan was taken out without being directly linked to the first, some of the money being used to repay the first loan

None of this affects whether the PPI was missold if it was always based on your father's circumstances.

FlySi

Thanks Dr Squeeze. I had a feeling that those might be reasons for it. It didn't help that all of the subsequent loans were carried out over the telephone. It's probably oversight on the part of Lloyds TSB that it was in both names originally.

FlySi

Could do with a little bit of advice for my parents. Originally, they contacted the FOS to discuss PPI on some loans they had and the FOS notified Lloyds TSB on their behalf. They submitted multiple questionnaires to Lloyds TSB at the start of August and to date have heard nothing. As they went through the FOS in the first instance, there was some confusion about when the PPI claim first started. That's now been cleared up for us. The 16 week deadline is due to end in three weeks. Is it worth my parents contacting Lloyds and asking what the status of their claim is?

amersall

FlySi wrote: »

Could do with a little bit of advice for my parents. Originally, they contacted the FOS to discuss PPI on some loans they had and the FOS notified Lloyds TSB on their behalf. They submitted multiple questionnaires to Lloyds TSB at the start of August and to date have heard nothing. As they went through the FOS in the first instance, there was some confusion about when the PPI claim first started. That's now been cleared up for us. The 16 week deadline is due to end in three weeks. Is it worth my parents contacting Lloyds and asking what the status of their claim is?

It cant do any harm, with this being with FOS they may not tell you,so contact the FOS and they can give you an update.

FlySi

Thanks amersall. To be clear, they only sought guidance from the FOS to begin with - the FOS offered to write to Lloyds and say that Mr and Mrs X would be querying their claims. Lloyds sent the questionnaires out to my parents so presumably as its my parents that are claiming in the first instance they should tell them?