Lloyds Bank BLRI (Business Loan Reyapment Policy) PPI Claim

middleman31

I have a Lloyds Bank business loan and insurane policy called BLRI (Busines Loan Repayment Insurance) which I took out back in 2008.

I was advised that I need this to cover the loan with the bank.

The cost of the BLRI polcy was £15,000 over a five year period.

The policy was set in two premiums for two people, each coming in at £7,500 per person.

I put in a claim against one of the insured and received around £1,500 mid 2009.

June 2011 saw my claim submission for the PPI mis-selling etc. I received a response advising me that they would be using the full eight 16 weeks. This is up next week.

Mid 2010, I wanted to replace an insured party with another person. I was advised that I could not do this as the BLRI policy was no longer sold.

When I tried to cancel the policy, it took them until mid 2011 to advise me that they could not speak to me about this and that I would need to speak directly with the relevant department.

Surprisingly, the 'relevant' department bounced me badck to my original contact, who in turn bounced me back to the so called 'relevant department'. This went on for 12 months before invoking the PPI reclaim procedure.

My questions are:

1. Despite my claiming on one side of the policy, do I have a valid claim?

2. If the bank state that I am not entitled to a refund on the policy as I have already claimed does that mean a shoplifter will not prosecuted if he 'puts the items back on the shelf'?

3. The bank are also stating that the policy is one policy although, the documentation clearly states that there are two insured and two premiums. I have also claimed on only one side of the policy. - Are the banks making all this up as they go or is there some structure to mis-selling BLRI which can be invoked?

4. The policy was also sold to me on a single premium basis and I was never offered a monthly premium. If I was offered a monthly premium then one, if not both policies may have been cancelled by now, as it was, I am locked in, the bank has my £15,000 and I want it back. What other recourse is there?

5. Why is the BLRI policy no longer sold? It seems that the make-up of this policy is gravely problematic hence the offer of a replacement with a simple Income Protection policy. What is the real story with BLRI?

I am dealing with big money, big losses and big interest on this BLRI policy, can anyone shed any light on this rather specialist molotiv policy?

Rgds

di3004

Hi there

Bumping this for you, hopefully someone will be along soon, good luck.

src007

middleman31 wrote: »

I have a Lloyds Bank business loan and insurane policy called BLRI (Busines Loan Repayment Insurance) which I took out back in 2008.

I was advised that I need this to cover the loan with the bank.

Banks are allowed to give you advice on insurance. However of they do so, they have to ensure the product is suitable. They should also make its clear its optional. Often it says its optional in the paperwork so its hard to argue you didn't know this.

middleman31 wrote: »

The cost of the BLRI polcy was £15,000 over a five year period.

That sounds very expensive although it depends on the size of the loan. Your main complaint point, that should get the complaint upheld is that it was sold as a single premium.

middleman31 wrote: »

I put in a claim against one of the insured and received around £1,500 mid 2009.

The insurance did its job. However this doesn't mean that you can't complain. That amount would be deducted from a refund (if you're successful).

middleman31 wrote: »

June 2011 saw my claim submission for the PPI mis-selling etc. I received a response advising me that they would be using the full eight 16 weeks. This is up next week.

You can't really do anything until the time is up. Then you'll have the right to go to the FOS. However there is a 12 month wait even for an inital decision at the FOS. Personally I would wait for their response even if they miss the deadline.

middleman31 wrote: »

Mid 2010, I wanted to replace an insured party with another person. I was advised that I could not do this as the BLRI policy was no longer sold.

When I tried to cancel the policy, it took them until mid 2011 to advise me that they could not speak to me about this and that I would need to speak directly with the relevant department.

Surprisingly, the 'relevant' department bounced me badck to my original contact, who in turn bounced me back to the so called 'relevant department'. This went on for 12 months before invoking the PPI reclaim procedure.

middleman31 wrote: »

My questions are:

1. Despite my claiming on one side of the policy, do I have a valid claim?

If you were arguing the insurance wasn't right for you because you wouldn't be able to use it, it could mean that the claim was invalid. However as the complaint is about it being sold as a single-premium that won't change things.

middleman31 wrote: »

2. If the bank state that I am not entitled to a refund on the policy as I have already claimed does that mean a shoplifter will not prosecuted if he 'puts the items back on the shelf'?

A complaint is to rectify loss not to ''prosecute'' the bank. Thats the FSA's job.

middleman31 wrote: »

3. The bank are also stating that the policy is one policy although, the documentation clearly states that there are two insured and two premiums. I have also claimed on only one side of the policy. - Are the banks making all this up as they go or is there some structure to mis-selling BLRI which can be invoked?

Two people can be insured with one policy.

middleman31 wrote: »

4. The policy was also sold to me on a single premium basis and I was never offered a monthly premium. If I was offered a monthly premium then one, if not both policies may have been cancelled by now, as it was, I am locked in, the bank has my £15,000 and I want it back. What other recourse is there?

You can cancel the insurance however to a certain extent you are locked in because there is a heavy penalty for cancellation. If the complaint is successful the PPI will be removed completely.

middleman31 wrote: »

5. Why is the BLRI policy no longer sold? It seems that the make-up of this policy is gravely problematic hence the offer of a replacement with a simple Income Protection policy. What is the real story with BLRI?

I am dealing with big money, big losses and big interest on this BLRI policy, can anyone shed any light on this rather specialist molotiv policy?

Rgds

Lloyds don't sell any PPI anymore. Almost certainly because of the number of complaints they received. As the product was so tarnished they probably thought the cost of future complaints (even if they cleaned up their act) would be too high. Business loan PPI isn't really any different from any other PPI, other than they usually don't include the 'unemployment' element which is unsuitable for a business loan.

middleman31

Thank-you for your replies.

The bank got back to me in 17 weeks.

The reponse stated 'we looked into it and you were not mis-sold'.

I replied asking them for their notes on the investigation in order that I could concur with them and they decided to start the 16 week thing again.

Do I demand a reply and then go to the ombudsman?
Do I just go straight to the ombudsman?
Or somehting else.

Can copy letters up if it helps.

middleman31

Could I claim under the BLRI PPI policy if I am seeking compensation?

Would this affect my recourse?

dunstonh

Could I claim under the BLRI PPI policy if I am seeking compensation?

yes. although it may invalidate your complaint reasons (although if you used reasons that were not valid, they should be invalidated anyway)

Would this affect my recourse?

Yes. They would void the claim and any amount paid out under the claim would be deducted from your redress payment.

middleman31

I have another reply.

Following the initial rejection I sent a letter which basically asked them why they have dis-allowed my claim.

I went on to say that

"Overall, there seems to be no clear explanation as you have claimed in your letter. General sweeping and ambiguous statements which provide no stable background upon which to base your decision, especially given the nature of the concerns and questions raised initially."

You get the idea, just asking for all their evidence to prove their 'investigation' so that I can concur with their findings.

The next letter I received was one which said they will be investigating further.

Starting another 17 weeks investigation was not acceptbale so out went another strong letter which advised them of this.

Within just over a week, I had another response saying they have Up-Held my complaint and 'offered' me around £11,700.

Another lette was subsequently sent out stating:

I refer to the content of the attached letters in which I ask for ALL questions to be answered. I again re-iterate that it is not acceptable to make a decision based upon mythical evidence from an investigation which has ‘taken place’.

I require ALL evidence to support your findings that my complaint has been upheld.

To elaborate further, I require evidence to establish, under what basis my complaint has been either upheld or not upheld. In my initial complaint form there were many areas of complaint which still remain unaddressed by you.

You have made no justifications, or in-depth calculations to validate your figures upon which you have based your ‘offer’, I need ALL your information on which you have based your ‘offer’.

You have not included ANY dates, timescales and any other pertinent information with which I can be satisfied that your ‘offer ‘, is anywhere near accurate.

This is the last time I will request this information from you. Failure to respond within 14 days of the date of this letter will force be to seek an alternative resolution.


I am waiting for a response.


It seems that I have lost out on £15k cash in my business and instead of spending this money on equipment it has been swallowed up by a bank loan.


So when I was advised that if I wish to accept their 'offer' they will offset the money against my existing bank loan, I was very angry indeed.



As the letter stated I am entitled to also claim consequential losses, should these losses extend to the inability to support my business with this £15k cash?



Should I not receive this money as a cash lumo sum?


Should I not receive the full £15k plus damages as I have not been sold the policy correctly. By this I mean that it was incorrect for my Sole Trader business?


Has anyone got this far, or pushed it any further?


I feel that £11,700 is an insult on the basis that this should not have been sold to me full stop.

middleman31

Especially in light of this article on the FT website

UK banks are targeted over mis-selling scandal



http://www.ft.com

I cannot paste the link as it asks to log in but if you just search the title on the FT website it will come up.

pal64

As part of a business loan taken out with Lloyds in May 2008, I was told that I needed to take out their BLRI (Ban loan repayment ins) at a single upfront cost of £10,500 to cover 120-months. The loan has since refinanced under new terms 4-years into the loan & despite numerous requests the bank now said that loan doesn't have the BLRI cover.


The originally only said that 'I had to have the BLRI cover' despite me also taking out separate Critical illness Insurance cover for the loan.


When the loan was refinanced the bank never suggested any difference to the terms of the BLRI cover or the fact that it would be removed.


Is the bank liable for bad advice and the fact that it has removed any cover without any confirmation despite paying up front for 120-months

Bloblik

Hi Middleman/PAL64,

Did you get any joy with your claim, I have a thread asking whether other businesses were mis sold and have been fobbed off:

https://forums.moneysavingexpert.com/discussion/5132580

Thanks

[Deleted User]

Bumping up old threads is not recommended. Middleman last logged into this site in 2013. Pal64 made one post in February and has not returned since.