Can the banks ask for details on benefits ?

dmunday10

Just had a call from Lloyds following a claim for PPI on a Loan. The basis of the claim is that I did not understand the PPI was optional and that I had suitable benefits in place. The Bank just called asking for details of my redundancy, death in service and sickness cover. I never made a claim and am wondering if I should provide this information ?

I guess they are trying to justify the value of the PPI but didn't ask for this when selling the loan and PPI. Any advice much appreciated.

-taff

They asked me too. It didn't result in them upholding my complaint though...

dmunday10

-taff wrote: »

They asked me too. It didn't result in them upholding my complaint though...

Did you give them the details ?

Stupid_Question

Yes.

You've stated you didn't realise it was optional, depending on the date you took it out, they should be able to evidence you signing a document stating 'I would like to purchase optional payment protection insurance' or something along those lines.

So the only other point to your complaint is that it was unnecessary due to other benefits/policies you had, it doesn't seem unreasonable to me for them to ask you to prove that. Remember - nothing to hide, nothing to fear! Send them the information!

DrSqueeze

dmunday10 wrote: »

The Bank just called asking for details of my redundancy, death in service and sickness cover. I never made a claim and am wondering if I should provide this information ?

I guess they are trying to justify the value of the PPI but didn't ask for this when selling the loan and PPI. Any advice much appreciated.

What they are trying to establish is whether you had a need for PPI at the time. This helps them investigate your complaint.

If someone could afford to repay a loan even in the event of sickness / unemployment then PPI might not have been needed. If however the person had no savings or employee benefits or income protection then PPI would have been a sensible option to consider.

dunstonh

They are allowed to ask for evidence. You can reject but they can then reject your complaint due to lack of evidence. The FOS would similarly ask you for evidence. So, no point being difficult.

It is quite normal to be asked. With the volume of fraudulent complaints all saying the same thing, they need to see if you are being truthful or not.

[Deleted User]

Give them as much information as you possibly can. If it aids your complaint it can only be beneficial to you.
I can't see any positive aspect to not providing the evidence (unless you don't actually have any, of course)