Multi Complaint Lloyds Loan

lewis3478

I've got a loan with lloyds tsb in 2004 and had a change of circumstances and had to enter into a credit agreement with them since 2004 due to illness. I sorted an agreement out with them through CCA and I was told that there would be no interest applied to the loan due to my financial circumstances, and I was to make a payment each month.

Loan amount £10,000
Sold with insurance
Monthly Repayment - £324
36 Months

Payment after agreement £30

I also had an overdraft to pay off and was told to split the payment to £15 on either account. However I was told that the two payments were just going into one account, as my over draft was now paid off.

Originally when I was sold the loan I was missold PPI, which lloyds said I had not been. Yet when I did a SARS request I have the original loan and it says with insurance. How should I proceed to reclaim the PPI ?

Also I have found out they have been charging me £70-£80 per month in interest, meaning for at least 4 years after I had the credit agreement. So how should I proceed with this?

After checking my credit report, it shows that I have two outstanding accounts, the overdraft has been defaulting for years. Even though I was told it was closed and that I just had my loan account.

So how should I proceed, is there one place that I can write to to get all of these things actioned, or do I have to pursue this via all the different departments of lloyds tsb ?

Also I want to get the interest refunded onto my loan balance, and can I get any compensation for this ? any ppi payment to come off it as well hopefully reducing my balance on this loan.

Thanks for any help you can give, it's taken me a long time to check this agreement and really want to get this into a better situation.

I'm also returning to work after some absence.

redpete

Did Lloyds say you weren't sold PPI, or that you weren't mis-sold PPI? Not every PPI policy was mis-sold.

Does the insurance cover the change in circumstance that caused the original problem?

antrobus

£324 for 36 months is a total repayable of £11,664. On a loan of £10,000 that's an APR of about 11% and doesn't appear to leave any room for PPI. So whilst the loan was "Sold with insurance", perhaps it wasn't PPI?

lewis3478

You might be right all i've got is a code 101 - LTSB Personal Loan with Ins" No more text in that line, also I cancelled the insurance, but i have no info when.

Apples2

Have your circumstances not changed at all over the last 9 years that you can still only afford £30 a month?

Do you have anything in writing which states they will not be adding interest onto your loan?
It may have been a temporary agremeent to accept the reduced payments and stop interest.

lewis3478

Hi thanks for the replies. No unfortunately I suffered from some mental health problems, and have spent a long time in therapy.

I have complained to lloyds tsb and there has been some progress. They rejected refunding any interest but have accepted they have recorded the defaults on my credit file incorrectly, and have offered me £75 in compensation.

However their response is confusing they say they haven't made any mistakes recording defaults or applying interest. However when they consolidated my loan account and current account in 2008. They incorrectly reported the current account defaulting even though it had been paid off. They don't state that they will amend the defaults since 2008 just that they will update the credit agencies saying that it has now been paid off.

I dont know whether I should pursue this or accept there offer, or ask them to remove the defaults back to 2008 or refer this to the FOB.

Any advice appreciated

Thanks Chris.

jonesMUFCforever

Was the mental health problem a pre - condition before you took out the loan?
If not why did you not claim on the policy?

If it was a precondition then it surely was missold to you and you should claim this back with interest (although if you win they probably would set aside your repayment against the debt).

To be honest I would let the complaint drop - it won't make any difference to your credit report - a default is a default whether it be loan or current account or both.