LloydsTSB PPI Payment

sianlouise

In December I received my final response from LTSB offering to pay me a refund of £1040 on my old loan. I have been calling the helpline asking when it would be paid since January and yesterday I spoke to an advisor who said he didn't know the timescale. Then he called me back to say he had looked into my claim further and I had already been paid! They had paid my money into an old LTSB account that I haven't used for years and they had paid me back in January. I went straight to the bank to withdraw the money as I haven't banked with Lloyds for a long time. So it didn't take a s long as I thought! If you are still waiting it may be worth checking you don't have a dormant account with your money sitting in there. :money:

gringo2000

davand638 wrote: »

Hi. I was looking for a bit of advice if at all possible. I have lodged a mis-selling complaint against Lloyds covering a total of 4 loans which I took out during the 1990’s.

On contacting the Lloyds claim line I provided the main reason for my complaint as being the fact that for all 4 loans, I was only ever provided with one monthly payment figure (which obviously included PPI) and not a monthly figure with and without. As such, they have recorded the main reason as ‘I was not made aware that cover was optional’.

My query relates to whether the above reason is sufficient for a claim or whether I need to elaborate. For all 4 loans, as stated above I was not provided with a monthly figure which included or excluded the cover but just the one monthly amount. I know for a fact that PPI was never explained to me nor were any questions asked relating to my personal circumstances etc. Also, I was in full time employment with generous sick/accident cover (6 months full paid reducing to half pay). Should I contact Lloyds and elaborate on these additional reasons or just leave it as it stands?

The reason I need this advice is that I would hate to think that just because Lloyds have not recorded all my reasons for my complaint, this may affect my claim. Am I being too fussy? Do Lloyds generally settle anyway?

Leave it as it is. Your reason is a valid one - so even if Lloyds reject it and you have to refer it to the Ombudsman, you'll be fine.

To be fair to Lloyds TSB, they may take ages to pay up, but they seem to be paying up quite easily without putting up a fight when PPI complaints are made. They never even asked me for a reason for my PPI complaint, and I never offered to give them one either.

[Deleted User]

davand638 wrote: »

On contacting the Lloyds claim line I provided the main reason for my complaint as being the fact that for all 4 loans, I was only ever provided with one monthly payment figure (which obviously included PPI) and not a monthly figure with and without. As such, they have recorded the main reason as ‘I was not made aware that cover was optional’.

This is plainly wrong.
Your main reason should have been recorded as the PPI was "front-loaded" so that you were effectively paying a loan-within-a-loan to term end with interest. This is the "one monthly payment figure" you told them about.
This front-loading complaint is frowned upon by the FOS and is the most frequently upheld complaint.

[Deleted User]

gringo2000 wrote: »

They never even asked me for a reason for my PPI complaint, and I never offered to give them one either.

Strange that they make the actual complaint process so much easier than some of the other banks and yet are the most reticent to actually payout the agreed redress!

madmartha

Hi my mum received phone calls from lloyds in last few weeks looking for further information. Does anyone know how long it may take from this point for her to hear? The 8week deadline is just over a week away. Also had anyone else had Lloyds phone them for further information?
thanks

[Deleted User]

madmartha wrote: »

Hi my mum received phone calls from lloyds in last few weeks looking for further information.

This is a consequence of the Bank taking complaints over the telephone and not requiring customers to fill out the FOS Consumer Questionnaire.
At least it shows that a real person is looking at your mother's complaint and that she isn't simply receiving standard letters.

As for the eight week "deadline", I wouldn't be holding them to the day and the hour.
This really is a game of patience...

davand638

Moneyineptitude wrote: »

This is plainly wrong.
Your main reason should have been recorded as the PPI was "front-loaded" so that you were effectively paying a loan-within-a-loan to term end with interest. This is the "one monthly payment figure" you told them about.
This front-loading complaint is frowned upon by the FOS and is the most frequently upheld complaint.

Thanks for the replies to my query. In relation to the above, could you please clarify what you mean by this being plainly wrong? Are you saying that I should re-contact Lloyds and inform them that my complaint relates to my loans being 'front loaded' and that I want my complaint recording as such or will the reason currently recorded as "I was not made aware that cover was optional" suffice? I'm starting to get a little confused as to whether I need to elaborate on this or not!

[Deleted User]

davand638 wrote: »

Are you saying that I should re-contact Lloyds and inform them that my complaint relates to my loans being 'front loaded' and that I want my complaint recording as such

In a word. Yes.
As I said, the "front loading" complaint is the most frequently upheld. In my opinion, you should ensure due prominence is given to this reason to ensure the Bank give this proper consideration.

(It'll probably be upheld on this basis anyway, but I'd want to be sure...)

davand638

Moneyineptitude wrote: »

In a word. Yes.
As I said, the "front loading" complaint is the most frequently upheld. In my opinion, you should ensure due prominence is given to this reason to ensure the Bank give this proper consideration.

(It'll probably be upheld on this basis anyway, but I'd want to be sure...)

Thanks for that. I'm going to apologise for my ignorance at the outset however, before I reply back to Lloyds I was wondering if you could clarify 'front loaded'. As previously stated, all 4 of my loans were taken out in the 1990's and all were quoted with 1 monthly payment figure. Does this mean that the loans were definitely 'front loaded'? If they were, my understanding is that the premium would be worked out against the total of the loan, then this premium added to the total of the loan and then I would have paid interest on the whole amount. Is this correct?

What if I reply and mention about my loans being 'front loaded' when in fact they weren't (if this is even possible!)?

Lastly, below is a general reply I am looking at sending to Lloyds and I would appreciate any feedback as to whether this would be suitable:

On applying for all 4 loans, I was only ever provided with one monthly payment figure and was not quoted monthly figures with and without Payment Protection Insurance. As such, I was not made aware that cover was optional.

It was not explained to me that the policy premium would be paid upfront as a single premium and would be added to my debt and attract interest.

The Payment Protection Insurance cover was never explained to me by the staff member arranging my loan nor were any questions asked relating to my personal circumstances etc. I was therefore unable to make an informed decision as to whether this insurance was appropriate for me.

Throughout the duration of all of these loans, I was in full time employment (with the same employer) with my employer providing generous sickness/accident benefits (6 months full pay reducing to half pay thereafter).

As a result of the above, I believe that for all 4 loans obtained from Lloyds TSB I have been mis-sold Payment Protection Insurance.

[Deleted User]

davand638 wrote: »

all 4 of my loans were taken out in the 1990's and all were quoted with 1 monthly payment figure. Does this mean that the loans were definitely 'front loaded'? If they were, my understanding is that the premium would be worked out against the total of the loan, then this premium added to the total of the loan and then I would have paid interest on the whole amount. Is this correct?

Yes.

davand638 wrote: »

below is a general reply I am looking at sending to Lloyds and I would appreciate any feedback as to whether this would be suitable:

That covers all the bases. I think you have a win there.