LloydsTSB Complaint - Comments?

WhiskeyBravo

To cut a long story short, my wife and I separated in Jan 2010. We have been able to keep things amicable throughout although she has struggled to manage her finances. Below is an abridged version (copied and edited for clarity here on the forum) of a letter of complaint I sent to LloydsTSB on the 15th April this year. Initially I did not pursue a complaint after they cancelled the policy and returned the premiums paid but the more I thought about it the more angry I became until I finally put pen to paper. The gist of the letter was:

“In Feb 2012 my wife was looking at ways to save money. At the time we had an insurance policy that covered both my wife and I so that in the event of either of our deaths the mortgage we have would have been paid off. This policy cost us £35 per month, was paid by my wife and would run for the duration of the mortgage. At the time there was 18 years left for the mortgage term and the amount outstanding was around £150000. The protection would reduce over the years in line with the outstanding mortgage.
On speaking with a LloydsTSB advisor my wife was persuaded to buy a policy which cost her £33 per month and would pay out £10000 in the event of her death. Payments on the old policy were cancelled and the policy lapsed.
The LloydsTSB advisor does not appear to have asked any relevant questions about any possible existing policies that my wife may have had. If he did ask relevant questions I am shocked that he considered that ‘his’ policy was better than the existing policy.
Both my wife and I spoke with a LloydsTSB customer services rep at length about the matter in May 2012. They agreed to cancel the policy, refund the premiums paid and pay an amount equal to the unpaid premiums on the original policy.
I contacted the company who provided the original policy with a view to getting it re-instated. They required payment of the unpaid premiums and a renewed application. As a result of this the monthly premiums were then raised to £55. I have made several enquiries with other companies. I have asked for a policy that would cover my wife and me and that in the event of our deaths the amount paid out would cover the remaining balance of the mortgage.
To date I have received quotes of between £55 and £85. Therefore, it appears to me that as a result of the poor advice received from LloydsTSB, my wife and I could incur additional costs of between £20 to £50 per month for the next 18 years or so.”

So that's the background. Currently, LloydsTSB are investigating the matter and they are in the process of contacting the insurance company to confirm the details of the old policy. This has involved me making more phone calls and writing letters to the company informing them that my wife and I will give consent for LloydsTSB to ask about the old policy.

I have a few questions on which I hope members of this forum may be able to offer some advice.

1. As I see it, I thinks its entirely reasonable for LloydsTSB to compensate us for any additional costs we have to pay over and above the £35 we were paying for the original policy. Am I being realistic in this view?

2. Is it reasonable to expect any additional compensation from LloydsTSB as their actions have caused a lot of upset and arguing between me and my wife. If so, what should I expect?

3. Should I have to be making phone calls and writing letters to the insurance company giving them permission to discuss the matter with LloydsTSB? Its as if LloydsTSB don't trust what I'm saying despite the fact I have the relevant paperwork showing the policy details and the increased premiums following the missed payments.

4. We did not replace the old policy when it lapsed as there was too much going on at the time and it didn't get the priority it deserved. I am now in the process of looking for a suitable replacement policy. Do you think this delay in finding a replacement will hinder my complaint?

Thanks in advance for any comments.

Regards,

WB.

matttye

Your wife could have just turned down the offer of that policy.

I would think it's yours and your wife's job to choose the best deal, not Lloyds TSB.

I understand why you're annoyed about the whole situation, but it seems to me that your wife approached Lloyds TSB to ask about a cheaper policy and they provided one. Job done as far as they are concerned.

I don't know if I'm alone in this...

jonesMUFCforever

Sorry but if your wife does not make the complaint then they won't do anything.
If you wanted to maintain the policy you should have made the payments.

Should you win your dispute then I would suggest you tell LLoyds that you will continue to pay the old premium and that LLoyds should personally take on the liability of the policy.
I would suggest this to them as a final reply before you go the ombudsman (I would suggest a joint complaint).

opinions4u

1. It's almost certain that your previous acceptance of refund was in full and final settlement.

2. You'd have found something else to argue over, so I think you're pushing your luck.

3. You made a complaint. Either you want them to be thorough or you don't. So despite my answer to part 1 this suggests they've not ruled out paying you more.

4. Yes, as premiums would have been cheaper if you'd acted sooner.

dalesrider

WhiskeyBravo wrote: »

To cut a long story short, my wife and I separated in Jan 2010.

“In Feb 2012 my wife was looking at ways to save money.

On speaking with a LloydsTSB advisor my wife was persuaded to buy a policy which cost her £33 per month and would pay out £10000 in the event of her death. Payments on the old policy were cancelled and the policy lapsed. .

What has this got to do with you?
You seperated 2010.
2012 ex Mrs needs to save money and cuts YOU out of the life cover on the mortgage.

Why are you so upset?

Seems to me that the only odd thing is she did not save that much on the policy, by cutting you out.

WhiskeyBravo

To clarify, we had agreed to maintain the policy which covered both of us. She carried on using the joint account that we had for a long time before we separated and the payments for the policy were taken from this account. It is not just me making the complaint, we are doing so jointly.(It is possible for people to get along and be civil after a separation you know folks!).

Anyway, my argument with Lloyds is that they made no effort to establish if there were any existing policies in place when they recommended their policy to my wife. She was making what she thought was an effort to reduce her outgoings and be independent. I think she was taken advantage of because of her naivety with money matters. If she had consulted me first I would have advised her accordingly but that's another story.

The policy sold to her saved her £2 per month and offered a maximum payout of less than one fifteenth of the outstanding mortgage at the time and only covered her as opposed to both of us. Now I can understand if they had sold her a policy costing £10 per month and paying out a only around third of the original policy - that would make sense but in no way can the policy they sold be seen as value for money compared to the then existing policy.

Thanks for comments so far.

WB.

innovate

Quick glance suggests to me, however honourable your efforts might be, that you are not in a position to appeal about anything. It seems your wife took out the insurance, so your wife must complain if she is unhappy. You can of course assist her, but that's about all you can do.

pmduk

Additionally, in future remember bank staff can and will only recommend their own employer's products. Your wife would have done a lot better going to an IFA or broker.

dalesrider

WhiskeyBravo wrote: »

Anyway, my argument with Lloyds is that they made no effort to establish if there were any existing policies in place when they recommended their policy to my wife. She was making what she thought was an effort to reduce her outgoings and be independent.

Given you were not there, how do you know this. Most staff would have a look at the account and realise that there was already a policy in place. Given that MRS must have been telling them that she was looking to reduce outgoings.

Payments on the old policy were cancelled and the policy lapsed.

So who made that decision? and cancelled the DD?

WhiskeyBravo wrote: »

I think she was taken advantage of because of her naivety with money matters. If she had consulted me first I would have advised her accordingly but that's another story.

>It is possible for people to get along and be civil after a separation you know folks!).<

It would appear that while you maybe civil, that ex-mrs wanted to stand on her own two feet in this case, and take control of her own finances.

I do have to say that you are a very brave person to leave a joint account open. When not living as a couple.