Lloyds TSB: time to refer to the Ombudsman?

Doodlebugdoo

Hi all,
I am hoping to get some advice for my mum. Over a year ago she submitted a complaint to Lloyds TSB regarding mis-sold PPI on a creditcard. She is not very financially savvy and hadn’t even realised what PPI was till she saw a programme on the TV. She has only ever banked with TSB and only ever had this one credit card and assumed the insurance charges were a standard/ mandatory thing. Once she discovered what PPI was she also discovered it was totally unsuitable for her. At the time the policy was added she worked p/t in a school. She then subsequently retired but continued to pay the PPI for a further 9 years! Since submitting her complaint she has received only one letter from Lloyds confirming their receipt of it. She has called them numerous times and gets the same story each time: an e-mail will be sent to the appropriate team, no decision has yet been made etc...

Anyway, I recently found out about all this and told her banks have an obligation to investigate/ respond to complaints within 8 weeks or you may refer your complaint to the ombudsman. With me there, she called the bank and very politely explained her position and that she is running out of patience and considering taking her complaint further. Their response? ‘You have the right to do that if you want ’ – she was then told another e-mail would be sent to the appropriate team. It’s now two weeks later and she has heard NOTHING!

Sorry this post is so long but I am appalled by Lloyds TSB’s behaviour (thankfully I do not bank with them). I know the Ombudsman has huge backlogs so I am wondering whether my mum should wait it out with TSB or refer the complaint to the FOS? Would writing another letter help? Any advice would be gratefully received!

dunstonh

Anyway, I recently found out about all this and told her banks have an obligation to investigate/ respond to complaints within 8 weeks or you may refer your complaint to the ombudsman.

They are not required to respond with outcome within 8 weeks. It is the point you can refer to the FOS though.

I know the Ombudsman has huge backlogs so I am wondering whether my mum should wait it out with TSB or refer the complaint to the FOS?

Wait for Lloyds. FOS is 12-18 month backlog. You would be asking the FOS to investigate it which reduces the chances of an auto payout. i.e. reducing the chances of success.

Would writing another letter help?

No. it is the system so wait.

Doodlebugdoo

dunstonh wrote: »

They are not required to respond with outcome within 8 weeks. It is the point you can refer to the FOS though.



Wait for Lloyds. FOS is 12-18 month backlog. You would be asking the FOS to investigate it which reduces the chances of an auto payout. i.e. reducing the chances of success.



No. it is the system so wait.

Thank you for your response, Dunstonh,

I accept there is a system in place but think it is a pretty poor one if it takes more than a year to examine a complaint. I shall advise my mum to wait and try to persuade her that, after 30+ years, it is time to look for a new bank!

dunstonh

I accept there is a system in place but think it is a pretty poor one if it takes more than a year to examine a complaint.

It is not ideal but this is extreme circumstances which is short term.

I shall advise my mum to wait and try to persuade her that, after 30+ years, it is time to look for a new bank!

And which bank would you pick that hasnt had a PPI issue?

I am with LloydsTSB and I would agree that it is nothing like the Lloyds it used to be. Too much TSB in my view. However, when you look at the alternatives, there isn't a lot of difference.

-taff

I would give them another couple of weeks then refer it to the Ombudsman anyway. Better to wait with them for 6 months, than another year with Lloyds.