Is PPI the same as LPI?????? Please help

back2square1

Hi I have just read the thread regarding PPI and how to sort it out with your bank so you are no longer paying it.
I have just got the details of the loan that I took out with Lloyds TSB 10months ago and have noticed that I have Loan Protection Insurance. Which is a Loan for Loan Protection Insurance which is additional to the £18000 I borrowed at almost £5000.
I am self-employed and informed the member of staff at the bank at the time of making the loan application, so I am worried whether I have been misunderstood or mis-sold this loan.

Can anyone shed any light on this.

Your help would be most appreciated.

Many thanks

mrmajika

Lloyds TSB LP covers the self employed in the same way as 'normal' full time workers are covered.

LPI and PPI are the same thing.

back2square1

Can I claim LPI back then? If its costing me additional money to my loan am I able to end the insurance???
Do you have to have LPI when you take out a loan?
Sorry if I am coming across as lacking intelligence but I am desperately trying to reduce my debts and current outgoings.
So far I have cleared £6000 credit cards, its just this loan that I am now left with. I have looked into paying it off early and the settlement figure as of yesterday was £17030. However if I am able to reduce this further it would be of great help.
I am currently applying for a mortgage with my girlfriend, she has no debts and has £56000 deposit. I feel pretty inadequate when my debts are a hinderance to our application.

mrmajika

back2square1 wrote:

Can I claim LPI back then?

The only way to claim back the LPI is to prove that it was mis-sold to you.

back2square1 wrote:

If its costing me additional money to my loan am I able to end the insurance???

You can cancel the insurance by visiting any LTSB branch although they will probably try to talk you out of it. The LTSB policy on this changed in January 2007 so if you are told that it cannot be cancelled - it's not true.

back2square1 wrote:

Do you have to have LPI when you take out a loan?

No, it's an optional cover that was most probably 'recommended' to you when you applied.

Hope This Helps.

back2square1

Great thanks for that information.

I shall see if I can do something about LPI. If I can get rid of it, it will reduce my outgoings.

gollyman1992

Hi,
I don't know if this will help, but when I took out a loan a while back I turned down the LPI but took out £17500 worth of Life & Accident Insurance. This cost just over £10 a month for the life of the loan (5 years) and completely paid off the loan if I was out of work for injury ot kicked the bucket.
Much cheaper than LPI and worth it if you work in a dangerous environment.
Obviously doesn't cover you if you're sacked/out of work.

Gollyman
ps Took the insurance out with the same bank as lent me the money!

Astaroth

Payment Protection Insurance (PPI) is the umbrella term for all these types of insurance, you then get different versions for loans, credit cards, mortgages, overdrafts etc.

PPI policies vary greatly both between lenders/ insurers and even within a single lender... always read the terms and conditions so you understand exactly what you are and arent covered for. Many of these great budget policies I have seen people go on about on here arent worth the paper they are written on in my opinion as the cover is so limited. Whilst some lenders insurance is very expensive in comparison many of the policy have been much more comprehensive. It therefore comes down to how much risk you want to take on.