Is my Scottish Widows Insurance the same as a PPI?

boywhogetsmoneyback

Hello.

So I am confused...

Is loan protection insurance the same as Payment protection Insurance?

I took out a loan with LLoyds TSB back in 2004. I was told I also had to take out insurance with Scottish Widows, which I did! Last month I sent my PPI questionnaire to LLoyds TSB, complaining that they hadn't made it clear at the time that the insurance was not compulsory. Last week they sent me a letter stating that they were 'unable to trace any payment protection Insurance policies in relation to the loan I took out with them and therefore were unable to take my complaint further'.

Where do I stand? Is it worth pursuing the complaint? I paid around ten pounds a month for two years for insurance that I thought was compulsory in order for me to receive the loan!

Also scottish widows sent me an overview of the loan and all figures were in dollars rather than pounds which I thought was strange and they sent me terms and conditions of Mortgage and business cover- which I don't feel is applicable!

Help!

dunstonh

Is loan protection insurance the same as Payment protection Insurance?

Scottish Widows are a life assurance company and not a general insurance company. SW do not offer any loan insurance.

I sent my PPI questionnaire to LLoyds TSB, complaining that they hadn't made it clear at the time that the insurance was not compulsory. Last week they sent me a letter stating that they were 'unable to trace any payment protection Insurance policies in relation to the loan I took out with them and therefore were unable to take my complaint further'.

Which is correct. If you bought a SW policy then it will either be life assurance or permanent health insurance (income protection) or critical illness cover (or a combination).

Where do I stand? Is it worth pursuing the complaint? I paid around ten pounds a month for two years for insurance that I thought was compulsory in order for me to receive the loan!

Lloyds retail their SW products under an advice process. So, there will be a factfind, needs analysis and a suitability report. If PPI had been done the same way then there would be virtually no PPI issues now.

SW products are paid monthly (so you cant use the single premium complaint)
SW products are underwritten at point of sale (so you cant use ineligibility complaint)
You have a financial need as you borrowed money (so you cant use the fact you didnt have a need - caveat would depend on type of insurance and if you are married and/or have children)
You dont have any evidence that you were forced to have it (and the documentation issued by SW and the adviser will state you have the right to cancel)

You are pretty much stuffed on this one as the advice process was used unless you can show you had no financial need for it and the adviser ignored that.