Do I have a leg to stand on?

mrbutch

I recently visited my Lloyds TSB branch in Bristol to check if I have ever had any loans with them. The only record they could find was a loan taken out in 1997 for 3 years. Repayment of £ 106.00 per month. The person in the Branch could not say if I was paying ppi on the loan but gave me a helpline to call. I called and the Advisor said I was paying PPI and asked if I wanted to make a complaint and the reason for the complaint. She advised she would send out a letter within 5 working days. On the back of this call I checked old statements and paperwork which showed I refinanced this loan in April 1999 for a further 3 years, value £ 4000. I then lodged this with the same lloyds PPi helpline. Agian I was advised that PPI was part of the loan. Reopayment was £ 164.56 per month.

This caused me to chck old paperwork and I found the orginal loan agreemnet for the second loan breakdown as follows:-

Amount of Loan £ 4000
Total Charge for credit £ 1,165
Total Amount payable £ 143.48 per month

Seperate Coloumn - To Pay Premium for Loan protection

Amount of loan £ 587.80
Total charge for credit £ 171.08
Total Amount payable £ 21.08 per month

Total Monthly premium £ 164.56 per month

I have signed this loan agreemnt and it says " have opted for Loan protection and have received terms and conditions"

In truth I remeber the conversation and only took the PPI as I was told it was a condition of the loan.

is it worth claiming ? Bearing in mind I have the loan agreement ? I questioned the interst rate (18.9%) and the PPI in March 2000 but was told by lloyds TSB " to answer your original request, the APR on your loan is fixed at 18.9%. It would aapperar that you signed all the documentation, and agreed to loan protection at the time of application.

Any advice in this matter much apprecited.

FeelStupid

It's worth claiming, yes, because it was front-loaded onto the loan. This is one of the better claim reasons and stands a very good chance you will be successful.

McKneff

You couldnt even remember whether you had ever had any loans but you remember having a bit of a conversation regarding having to take PPI out as a condition of the loan ??????

mrbutch

McKneff wrote: »

You couldnt even remember whether you had ever had any loans but you remember having a bit of a conversation regarding having to take PPI out as a condition of the loan ??????

Sounds fishy. Agreed. But once the memory was jogged and I found some of the old correspondance with the bank I remembered.
Just looking for advice really. Hey ho.

mrbutch

FeelStupid wrote: »

It's worth claiming, yes, because it was front-loaded onto the loan. This is one of the better claim reasons and stands a very good chance you will be successful.

Thanks for that. But won't the age of the loans coupled with the signed agreement count against me ?

mrbutch

FeelStupid wrote: »

It's worth claiming, yes, because it was front-loaded onto the loan. This is one of the better claim reasons and stands a very good chance you will be successful.

Also, excuse my ignorance. What does front loaded mean ?

FeelStupid

mrbutch wrote: »

Thanks for that. But won't the age of the loans coupled with the signed agreement count against me ?

Folk have had refunds back to the early 00s and late 90s on front-loaded loans. Front-loaded means they charged you up front for the whole premium, and I think I'm right in saying this was very frowned on by FOS as being unfair.

I've had refunds from LLoyds back to 2001 on loans.

monstermuncher

mrbutch wrote: »

Also, excuse my ignorance. What does front loaded mean ?

It's when they add the PPI onto the beginning of the loan, so you end up paying a great deal more for it as you're charged interest.

For some loans, the policy only covers you for part of the loan term, but you're paying for it for the whole length of the loan.

mrbutch

FeelStupid wrote: »

Folk have had refunds back to the early 00s and late 90s on front-loaded loans. Front-loaded means they charged you up front for the whole premium, and I think I'm right in saying this was very frowned on by FOS as being unfair.

I've had refunds from LLoyds back to 2001 on loans.

Hey thanks for all your advice. I will claim, see how I get on and post updates in the forum.

mrbutch

monstermuncher wrote: »

It's when they add the PPI onto the beginning of the loan, so you end up paying a great deal more for it as you're charged interest.

For some loans, the policy only covers you for part of the loan term, but you're paying for it for the whole length of the loan.

Thanks. Sound like I have a case.

wr1ght

if you applied for the loan face to face rather than online or by phone it goes in your favour because theres no proof of how you where sold it, nothing ventured