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MSE News: Lloyds 'wrongly rejecting PPI claims'

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  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Also Lloyds are losing 98% of cases with the ombudsman, but from this you infer that its due to a rise in bogus claims?

    Those cases that go to the ombudsman are probably those that actually have some merit rather than just being to people who respond to one of the hundreds of spam SMS messages they receive despite never having actually taken out PPI.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
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    50% of PPI mis-selling claims submitted via claims companies never even had the policy in the first place.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    MBNA for example were pre-ticking the acceptance box PPI on web applications for its credit cards for a 2-3 year period and clients had to actively opt out, something you have even commented on previously on this website.
    That's not "randomly applying PPI without permission" of course. As you said, I have mentioned that particularly noxious habit in other posts-but it didn't apply here.

    I'm also not a Financial Adviser, by the way.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    edited 1 November 2012 at 1:09PM
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    made yourself some nice juicy bonuses with blanket recommendations for PPI

    Or nice commissions for moving people's pensions?

    http://www.thisismoney.co.uk/money/pensions/article-2191982/Claims-management-firms-lure-PPI-mis-selling-victims-transferring-pension-risky-schemes.html

    "
    Unsuspecting victims of mis-sold payment protection insurance are being lured into transferring their pensions into risky schemes by claims management companies."

    It looks like people who'll sign anything put in front of them will never learn and just keep blaming it on others.



    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Alpine_Star
    Alpine_Star Posts: 1,356 Forumite
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    chanz4 wrote: »
    agree with lloyds, your figures are floored as the claims companys have been told off for trying to claim when no ppi so can you rely on them... nope

    The problem is that if you're unsure, the easiest way of of finding out if you had PPI is to complain and Lloyds themselves appear to acknowledge this themselves in their PPI complaints FAQs:

    What is PPI and how do I know if I have it?
    ......An easy way to check if you have taken out PPI, is to check your product statements for evidence of premiums paid. Also, you may have policy booklets and loan or credit agreements that show information on PPI. Some of our product names for this type of insurance include Mortgage sure, Payment Protection plus, card or loan protection.

    It then goes on to say:

    I cannot find any paperwork; can I still complain?
    Yes, even if you can’t find your paperwork we will investigate your complaint properly and fairly....


    Nowhere in the FAQs do they suggest an alternative.

    If Lloyds have such a massive problem with complaints where no PPI existed then the sensible solution would be to provide a mechanism where they can check when requested to, prior to the complaints process. As it is they only have themselves to blame.
  • dunstonh
    dunstonh Posts: 117,063 Forumite
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    However i suppose if you were an IFA and made yourself some nice juicy bonuses with blanket recommendations for PPI, then siding with MSE would be like turkeys voting for christmas.

    If you knew what you were talking about, and given your links to a claims company that means you dont, you will know that IFAs have had very little to do with complaints about PPI. The FOS stats show just 0.2% of complaints they deal with are advised (for all advised distribution channels).

    How about the scandelous level of commission you make for putting a stamp on an envelope containing either a questionnaire filled in by a person or a one-size-fits-all template letter containing lies in the hope that something may stick?
    Also Lloyds are losing 98% of cases with the ombudsman, but from this you infer that its due to a rise in bogus claims? Nice mental gymnastics there.

    Learn to read.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    If Lloyds have such a massive problem with complaints where no PPI existed then the sensible solution would be to provide a mechanism where they can check when requested to, prior to the complaints process. As it is they only have themselves to blame.
    I agree some banks appear to be quite cagey when asked directly if PPI was present. However, I'd wager that the majority of the cases being reported where PPI was not present are from people who are simply hoping to "get lucky" rather than from those simply unsure of their position.
  • Alpine_Star
    Alpine_Star Posts: 1,356 Forumite
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    I agree some banks appear to be quite cagey when asked directly if PPI was present. However, I'd wager that the majority of the cases being reported where PPI was not present are from people who are simply hoping to "get lucky" rather than from those simply unsure of their position.

    Maybe but as there were an estimated 35 million PPI policies 'sold', the chances of getting lucky are not unrealistic.

    Also, of the amount of complaints the FOS gets where the bank denies there was any PPI, 25% turn out that there was.
  • momrocks
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    Lorela1 wrote: »
    I am so frustrated with Lloyds. I have put in a claim for PPI I was not aware had been applied to my credit card. They have written to me rejecting the claim saying they have looked at all my eviden: "you completed the application on [enter date]". Aarrgh. So I called them to point out that either they hadn't investigated the complaint very well, or had simply not completed their pro-forma letter very well (we're all human...), and they said they would look into it and write to me again. They've sent me the same letter, with the same blooming square brackets!! If they really are looking into my claim properly, why are they unable to disclose the date the policy was taken out?!

    Llyods have been Bain of my last 15 months! Applied for PPI back told in letter I never paid any but found out two months later I was STILL paying it! I stopped paying it did as they said not only sending all proff via fax twice once even the bank faxed it but they lost it! So sent by post they lost that so now with Ombudsman which will take over 12 months to investigate!
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
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    edited 11 November 2012 at 5:54PM
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    I personally have dealt with many clients complaints recently, where Lloyds have rejected a complaint whereby both clients had more than adequate cover (both full time civil servants)
    So what sick pay do they get then?

    And what guaranteed redundancy payments?


    A bit concerning that all these people running the country cannot fill in a form far simpler than most Civil Service ones and pop it in the post this saving themselves all that money you are charging them (this form to be precise)
    but had been told they had to take the PPI or they wouldn't get the mortgage.
    Possibly but there is no evidence.
    There was no justification for rejecting the complaints
    We don't know that yet.
    Also Lloyds are losing 98% of cases with the ombudsman
    I am not going to defend Lloyds TSB
    However i suppose if you were an IFA and made yourself some nice juicy bonuses with blanket recommendations for PPI, then siding with MSE would be like turkeys voting for christmas.
    The proportion of complaints to IFAs from ambulance chasers about the missale of PPI policies which, if they existed at all were NOT PPI is actually higher than the uphold rate Lloyds TSB has experienced at FOS - by a full 2%.

    IFAs do not sell credit cards - so they do not sell PPI for it.

    IFAs do not sell car loans - so they do not sell PPI for it.

    IFAs do sell mortgages - and their clients are wise to take PPI for it because their home is at risk if they do not keep up repayments on a mortgage or other loan secured on it.

    Furthermore, it is very unusual for PPI on a mortgage to be single premium because that would eat into the equity in the property and affect the amount the mortgagor can borrow.
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