Have you reclaimed PPI?

mrmajika

midflight wrote: »

Could someone please confirm if this is actually true??? Is PPI always optional, and can not be sold as a condition of a loan?

My partner is in almost exactly the same situation - she was sold a 5 year £7500 loan by Lloyds in Sep 2003, and was told that PPI had to be included... can this be right!?!? Are there any situations where PPI can be made compulsary???

There is still £1700 (18 months) left to pay... what are the chances of us getting a refund of PPI on (a) the whole loan, or (b) the remainder?

Many thanks.

Certainly with LTSB PPI on loans has ALWAYS been optional. This should have been made clear to you.

You might have trouble reclaiming the PPI on the loan as it's essentially your word against thiers and, I would imagine, that you signed the paperwork for the PPI.


LTSB changed their policy in January 2007 meaning that you can cancel the PPI on the loan. You will have to visit a branch to do this. The loan should continue at the current interest rate. I have heard stories that this change in policy hasn't filtered down to all branches, so if you're told that you cannot cancel - then it's not true.


I always find it strange (and this bears no relation to the post by midflight- just in general) that people can so vividly recall conversations from 3 and 4 years ago when they were told that they HAD to have PPI.:p

shoughtonuk

Hi Everyone

I have now received a rebate of PPI from AA loans since my cancellation two months ago. My original loan agreement shows capital loan for PPI and interest on the PPI loan separately from any other borrowings/interest. I have only been given a credit of the PPI capital loan and the full amount of interest still appears to be charged. Do you think I should also get a further refund? I have raised this with AA - watch this space!....

peenut

hi, i actually have an appointment today with my bank manager to discuss my missold ppi, i seem to remember although a bit vague since it was 2004, that i was told i had to take out ppi otherwise i could not have the loan, dont know how i can prove this but my word against theirs i guess, anyway only realised how bad off i was when i thought i would ring for a settlement figure, borrowed 8,350, ppi 2900+ still owe 6,500+, im so angry ive been with the Halifax for about 20yrs!, Anyway i'll let you know how i get on today, do you think threatening to close two accounts i have with them may help?

midflight

Certainly with LTSB PPI on loans has ALWAYS been optional. This should have been made clear to you.

LTSB changed their policy in January 2007 meaning that you can cancel the PPI on the loan. You will have to visit a branch to do this. The loan should continue at the current interest rate. I have heard stories that this change in policy hasn't filtered down to all branches, so if you're told that you cannot cancel - then it's not true.

Well, I'm sorry to say that Lloyds TSB are being truly useless in our case

We have just wasted 2 whole lunch hours getting absolutely nowhere.

-Firstly they claimed to know nothing about getting a PPI refund, despite this being a major city centre branch & the policy supposedly being in place since January!?

-After lots of dithering about & making many phone calls to other departments who just kept passing the buck to other clueless departments, they said they'd have to get back to us later in the day. They didn't.

-Went in again today, and were told that in order to cancel the PPI we'd have to take out a new loan, but that they would NOT honour the original low rate, it would have to be at 17.9% (!!!) which would immediately render any PPI refund useless.

-In that case, we asked about paying the loan off early (not that we can really afford to). How much PPI would we get back? Well, apparently there is £221 PPI left to pay... but they will only refund £55 of it !!!!???? Can this be legal???

My girlfiend is now sick with stress about all this. They should never have sold her PPI in the first place, and now they are acting like this just because we are trying to stop paying the last 18 months PPI on a 5 year loan. It stinks.

How should we proceed???

regularsaver1

At Least she may be able to claim if she is off sick for 30 days

I thought that the Lloyds procedure is that they will cancel the ppi in branch, but no refunds

this would have to go higher up?

mrmajika

midflight wrote: »

Well, I'm sorry to say that Lloyds TSB are being truly useless in our case

We have just wasted 2 whole lunch hours getting absolutely nowhere.

-Firstly they claimed to know nothing about getting a PPI refund, despite this being a major city centre branch & the policy supposedly being in place since January!?

You won't get a refund for the PPI payments paid. You are able to cancel the PPI.

The policy for this DID change in January. What they do is re-do another loan for you but AT THE SAME RATE as the original loan over the remaining term. I have seen the brief and there are set guidlines for staff members to take to reduce the rate back down to the original APR. I wouldn't want to go into too much detail in a public forum

Stick at it. I suppose the best thing to do would be to put the request in writing.

midflight

You won't get a refund for the PPI payments paid. You are able to cancel the PPI.

Yes, sorry - just to clarify, we are only trying to cancel what's left at the moment (18 months). The claim for the refund (due to being mis-sold) may come later

The policy for this DID change in January. What they do is re-do another loan for you but AT THE SAME RATE as the original loan over the remaining term. I have seen the brief and there are set guidlines for staff members to take to reduce the rate back down to the original APR.

Well, I'm not trying to claim that what you say is wrong (and I hope it's right!) but I'm afraid none of the staff we have spoke to so far seem to have the slightest clue about any of this

However, the loan was originally taken out at an unusually low rate (1.1%, don't ask why...) so maybe this is why they are reluctant to re-finance at the same rate. But to jump it up to 17.9% when there is only 18 months remaining is just insulting.

I wouldn't want to go into too much detail in a public forum.

That's fair enough, I understand. But please PM me if you can help at all!

Stick at it. I suppose the best thing to do would be to put the request in writing.

I agree, and we are working on a letter at the moment. Many thanks for all your help & advice so far. It's so good to know we're not alone.

mrmajika

midflight wrote: »

However, the loan was originally taken out at an unusually low rate (1.1%, don't ask why...) so maybe this is why they are reluctant to re-finance at the same rate. But to jump it up to 17.9% when there is only 18 months remaining is just insulting.

To the best of my knowledge, LTSB have never commercially offered loans at this rate.

It sounds as though your partner may have ran into problems with a loan and have had a 'collections loan' put in place at a really low rate over a longer term. These are where they essentially try to recoup the money lent with minimal interest as the customer is in danger of going bankrupt etc and the debt going bad. I can't think of any other reason for such a low rate.

I'm not sure how this would work with the whole cancelling PPI thing.

Good luck with it all.

midflight

It sounds as though your partner may have ran into problems with a loan and have had a 'collections loan' put in place at a really low rate over a longer term. These are where they essentially try to recoup the money lent with minimal interest as the customer is in danger of going bankrupt etc and the debt going bad. I can't think of any other reason for such a low rate.

It wasn't to pay off an existing loan. It was simply a "re-finance" loan. My partner kept going overdrawn & was struggling to pay off other debts. Lloyds refused several times to provide any kind of overdraft. They did eventually offer a loan at 1.1%, but only on the condition that PPI was taken out.
My partner could neither afford the PPI, or needed it (I can explain why, if necessary) but didn't know what else to do. For these reasons, I believe she was mis-sold. But as you mentioned before - how can we prove it? She signed the documents, after all. So all we are trying to do for now is get the remaining PPI cancelled. This is proving to be increasingly frustrating, as it becomes more & more obvious that the banks do not want to give up their lucrative money making schemes.

Cheers! :cool:

mrmajika

midflight wrote: »

It wasn't to pay off an existing loan. It was simply a "re-finance" loan. My partner kept going overdrawn & was struggling to pay off other debts. Lloyds refused several times to provide any kind of overdraft. They did eventually offer a loan at 1.1%, but only on the condition that PPI was taken out.

That's what I thought. These are known as collections loans as described above. I don't know all that much about how these work as there is a dedicated collections department that deal with these.

I would imagine that the PPI should have still been optional - but can't be certain. Again - not sure about cancelling PPI on these ones either i'm afraid.