Can we claim?

Mrs_Optimist

I am posting on behalf of a family member who had PPI added to a personal loan with Lloyds TSB some 8 years ago. The PPI was around £5k. I queried this with the Bank myself at the time (after I found out about it!) as my family member was on Benefits (DLA), lived in a council property, was never able to work again because of her disability etc. The Bank basically told me and her that the PPI was therefore her protection and should she default on the loan, the PPI element would step in to make up her payments.

I didn't really buy this at the time but wasnt sure about her rights. The Loan and PPI was paid off courtesy of a remortgage another relative took out to assist and my family member has been paying that element of the mortgage since.

My question really is whether this was misselling? I know it was added to the loan automatically. If it was, is it too late to reclaim it?

Thanks in advance

DevCoder

How soon after taking the loan out was it repaid?

Mrs_Optimist

at least 12 months- sorry cannot be more specific but I didn't know about the PPI (or loan) immediately until mum was struggling to make repayments. I think she had one loan with them, then ran up some credit cards and the Bank suggested she take out a bigger loan with them to pay off her credit cards and the first loan she had with them (NOT blaming Bank for her debts by the way, as she is at fault with that). Just wondered whether PPI wouldever have been applicable as she wasn't working so wouldnt have been unemployed, had a drop in income etc.

ETA: LLoyds knew she was not working, in receipt of benefits etc as she has always had her main account with them and her DLA is paid into that account.

magpiecottage

The relative can put in the complaint. However, it will depend on whether records still exist.

-taff

Yes she can complain, but any redress will go to her, not to the relative that paid it off unless she wants to give it to them.
Also, she will only potentially receive the PPI she paid over the time she was paying it, any extra would have been refunded when it was paid off.

Mrs_Optimist

Thanks for your response. So the fact it was over 6 years ago does not make any difference? I thought Banks were supposed to write to account holders if PPI was missold? And does it sound like PPI was missold given mum was, and still is on DLA? I couldnt fathom for the life of me at the time under what circumstances the PPI would kick in as she was not likely to be made redundant, lose her income etc. I raised this with the bank when I went with her and they assured me that the PPI would be to her benefit? I do recall it was thousands of pounds.

[Deleted User]

Mrs_Optimist wrote: »

So the fact it was over 6 years ago does not make any difference?

The only difference it can make is that the Bank may no longer hold a record of this finance. Do you have documentation?

Mrs_Optimist wrote: »

I thought Banks were supposed to write to account holders if PPI was missold?

This is only the case if a widespread fault is identified by the Bank which could have impacted many people. Even then, being written to would not automatically mean you were mis-sold.

Mrs_Optimist wrote: »

And does it sound like PPI was missold given mum was, and still is on DLA?

If this would have precluded her from claiming on the insurance then this would be a valid complaint reason.

Mrs_Optimist wrote: »

I couldnt fathom for the life of me at the time under what circumstances the PPI would kick in as she was not likely to be made redundant, lose her income etc. I raised this with the bank when I went with her and they assured me that the PPI would be to her benefit

If this is the case, on the other hand, then being on DLA would not be a valid reason.

Mrs_Optimist wrote: »

I do recall it was thousands of pounds.

The amount paid is irrelevant, it's whether this policy was mis-sold or not.