Lloyds Banking Group £3.85 Billion In Red After PPI Cost Wipes Out Profit

wotsthat

CLAPTON wrote: »

the initial and main problem with PPI was the dificulty of actually claiming; lots and lots of small print and exceptions
whilst I agree that people should read the small print, in this case it was very very difficutl to undertsand
people, in many case bought from their bank becasue they trusted them.

the banks shot themselves in the foot by being so 'clever' at refusing so many claims and making so much profit.

then it all went wrong for them; no sympathy at all and sadly I own Lloyds shares too.

I don't really disagree.

However wouldn't the country be a better place though if people were just a little more cynical (in a healthy way) before agreeing to buy s**t?

Take a look at the PPI threads - it's a feeding frenzy of muppets indignant that there's been a delay in getting compensation for something that they didn't even know they'd been mis-sold.

If they thought they needed PPI why not check the prices from another provider? If the t&c's are too difficult to understand why sign them?

It's pretty basic MSE stuff. Do I need it? Can I get it cheaper?

Wheezy_2

Graham_Devon wrote: »

It was sold in such a way that even if you did have a legitimate claim, it was unlikely you would get paid out, as I found out.

It was also often sold as being 'mandatory' or people were being told it would improve their chance of getting the loan.

I'm all for personal responsability, wotsthat, but PPI was a scam, plain and simple.

Graham_Devon

Wheezy wrote: »

It was also often sold as being 'mandatory' or people were being told it would improve their chance of getting the loan.

I'm all for personal responsability, wotsthat, but PPI was a scam, plain and simple.

Yep, in 2003 (give or take) I remember buying myself the first "decent" car I had ever bought. I.e. taking a decent sized loan out for a car. Was sat there in a blackhorse approved dealership, told I can have the loan no problems, but I would HAVE to take Gold PPI.

I could of course remove this, but they explained this would put me into a higher risk bracket and the loan would be charged at 19%, can remember the figures. Instead my loan was something like 8.9%.

I took it, because I really wanted that car, as you do. Was oblivious back then that I was being pressure sold into something which was basically unlawful.

I do wonder what would have happened though if I had turned it down. Would I really have been paying more for the loan? Dunno. Either way, can't claim it as the loan was ended over 6 years ago and to be honest have no idea of any policy numbers!

Worst thing is, I was self employed at the time, so would never have been able to claim anyway. They knew that. I didn't at the time.

CLAPTON

wotsthat wrote: »

I don't really disagree.

However wouldn't the country be a better place though if people were just a little more cynical (in a healthy way) before agreeing to buy s**t?

Take a look at the PPI threads - it's a feeding frenzy of muppets indignant that there's been a delay in getting compensation for something that they didn't even know they'd been mis-sold.

If they thought they needed PPI why not check the prices from another provider? If the t&c's are too difficult to understand why sign them?

It's pretty basic MSE stuff. Do I need it? Can I get it cheaper?

it didn't look 'too difficult to understand'; it was that when claims were made the interpretation of some of the T&Cs were not what was expected

Percy1983

By all means those who have tried to claim and failed due to dodgey small print and false promises I can agree they should get every penny back.

But it does seem everybody has been mis-sold it now and many muppets are claiming it back as free money.

Graham, I can see in your dads case it is correct he could get it back, but for his legit case I bet there is 3 more muppets after free money.

Thrugelmir

CLAPTON wrote: »

then it all went wrong for them; no sympathy at all and sadly I own Lloyds shares too.

Someone should be accountable for the fact that Lloyds was allowed to merge with HBOS without due diligence.

By the end of this year the writeoff's and provisions made against HBOS will total around £50 billion.

CLAPTON

Thrugelmir wrote: »

Someone should be accountable for the fact that Lloyds was allowed to merge with HBOS without due diligence.

By the end of this year the writeoff's and provisions made against HBOS will total around £50 billion.

sadly no-one will be held accountable; not the British was

even when that moron Daniels finally left he kept saying it would be a great deal in the long run.

michaels

Problem was the paradigm shift - in the old world understood by Mr Daniels it would have been a good deal, probably even with 50bn write-offs. In the new world a large banking franchise just isn't worth much (witness how little LHBOS are being offered for selling off their excess branches and capital).

Honestly how many can recognise a paradigm shift within their own industry until too late?

CLAPTON wrote: »

sadly no-one will be held accountable; not the British was

even when that moron Daniels finally left he kept saying it would be a great deal in the long run.

Graham_Devon

Percy1983 wrote: »

But it does seem everybody has been mis-sold it now and many muppets are claiming it back as free money.

You only get it if it WAS miss sold in the first place.

Lloyds won't just give you a cheque when you say you had PPI. They will check the claims (hence it takes so bloody long) and pay them if they can see it was miss sold.

Many are getting turned away, and they can then approach the ombudsman. If they do, and Lloyds have rejected a miss sell, Lloyds will be even more in the !!!!!!.

So you only get this "free money" if it was miss sold in the first place. Therefore, you can't just claim because you had PPI at some point in the last 6 years. These people are not muppets, but of course the lure of a chunk of money is getting people claiming their money back. They have essentially paid for a product that they would never have been entitled too....it's difficult to therefore call them muppets.

The sheer amount of succesful claims shows the sheer daylight robbery that the banks were undertaking.

A miss sell is a miss sell, regardless of whether you have tried to claim or not.

Thrugelmir

Graham_Devon wrote: »

The sheer amount of succesful claims shows the sheer daylight robbery that the banks were undertaking.

Totally agree.

The downside is that selling of products such as PPI subsidised other products such as mortgages. So we end up paying in the end.