PPI Reclaiming discussion

OggMonster

My real horrors began when I approached Lloyds TSB when I started my Law degree in Sept 2004, requesting to change my current account to their "interest-free overdraft" student loan. This was declined, since I had approx £4000 on an A&L (MBNA) Visa, with a £500 overdraft (the bank I used whilst I worked as an optician) and £2000 on Morgan Stanley M/C.

Instead, I was very kindly (not too patronisingly, it's a wheelchair, not a lobotomy) shown into a private room, where the young lad (I'm not that old, although I felt it when being offered financial "advice" from someone 3 years my junior) proceeded to enquire into my fiscal behaviour. I explained that I was intent on studying, supporting myself via my Disability Living Allowance and student loan, equating to (£1100 Student Loan per semester + £230 per month DLA) £6060 P/A.

Based on this information, I was offered a loan of £9,300 at 17.9% APR over 5 years. Since I was desperate to study, and had hit rock bottom (queue violins) both financially and emotionally, I asked how and why I could borrow so much, when all other banks were virtually kicking me out of their door (or hiding their ramps )

I was seriously concerned that I would not be able to afford the monthly repayments (£284.87 INCLUDING THE NEVER ONCE MENTIONED LOAN PROTECTION INSURANCE!), but was reassured that I was being lent enough money to clear my cards and O/D, and still have enough to repay the loan for 4 months, during which time I was advised my scoring would improve enough to take another loan out, at a lower APR, pay off the initial, and reduce the repayments. At this time, I had no knowledge of banking practices, I was not aware that this is Mis-Selling, as my Contract Law lecturer later informed me.

To cut a long story short, 22 months after disputing the selling of the loan, Lloyds admit they did not "do all that we could to make sure that you could afford your monthly loan repayments"

Their offer, despite the huge charges I've incurred through not meeting payments, not receiving a penny of my benefit for 6 months (the repayment, being more than the DLA ate it up) includes;
1. Refunding the Loan Protection Insurance (to the loan, not my pocket), which, being severely disabled, one would think I was ineligible for in the first place (and thus should never have been sold),
2. Reducing the APR to 0%, and allowing me to continue to pay £10 per month,
3. Refund my current account with "unpaid item and excess fees of £480," ...repaying my outstanding borrowing on my account. (Thru' Lloyds negligently taking the full monthly repayment amount instead of the agreed £10, has happened 5 times, to my expense)

This leaves me in the situation (if I'm silly enough to accept ;o) of £7,614.84, to be paid at £10 per month... Taking me 63 years! to pay it off...

On several occasions they have reverted the payment amount back to the original £280, putting me over my overdraft and making me incur extra charges.

Since hearing from the Customer Service Recovery Centre, my current account has been held with their Collections Centre, meaning I'm unable to use any other banking facilities and the Recovery Centre have not honoured our agreement to replace the loan with a new, interest free one.

My question is whether I've a good case for disputing the entire loan - not just the PPI, since they've messed me around and cost me in charges etc?

Kind regards,

Oggie

mortimerrankine

m.colak wrote: »

Check with the FOS don't take a companies word for it and if they weren't covered by them try the FLA which was the body which came before the FOS in some case's. The broker is responsible for mis selling and therefore he is your point of contact he can and should retrieve the monies from the loan company. In a contest of who's word against who's then start throwing round the misrepresentation act 1967 and see if you get a response as it puts the ball in their court and they have to prove that they didn't mis sell after all.

Hi when i asked black horse for trainng records of staff members who sold me loans they replied they are not allowed to give out such information but all staff where fully trained to the financial services authority regulations as from jan 05 and my loans are after this date i am disabled and dont work and the loans were joint but the ppi was on as a single payment what do i do now

m.colak

OggMonster wrote: »

My real horrors began when I approached Lloyds TSB when I started my Law degree in Sept 2004, requesting to change my current account to their "interest-free overdraft" student loan. This was declined, since I had approx £4000 on an A&L (MBNA) Visa, with a £500 overdraft (the bank I used whilst I worked as an optician) and £2000 on Morgan Stanley M/C.

Instead, I was very kindly (not too patronisingly, it's a wheelchair, not a lobotomy) shown into a private room, where the young lad (I'm not that old, although I felt it when being offered financial "advice" from someone 3 years my junior) proceeded to enquire into my fiscal behaviour. I explained that I was intent on studying, supporting myself via my Disability Living Allowance and student loan, equating to (£1100 Student Loan per semester + £230 per month DLA) £6060 P/A.

Based on this information, I was offered a loan of £9,300 at 17.9% APR over 5 years. Since I was desperate to study, and had hit rock bottom (queue violins) both financially and emotionally, I asked how and why I could borrow so much, when all other banks were virtually kicking me out of their door (or hiding their ramps )

I was seriously concerned that I would not be able to afford the monthly repayments (£284.87 INCLUDING THE NEVER ONCE MENTIONED LOAN PROTECTION INSURANCE!), but was reassured that I was being lent enough money to clear my cards and O/D, and still have enough to repay the loan for 4 months, during which time I was advised my scoring would improve enough to take another loan out, at a lower APR, pay off the initial, and reduce the repayments. At this time, I had no knowledge of banking practices, I was not aware that this is Mis-Selling, as my Contract Law lecturer later informed me.

To cut a long story short, 22 months after disputing the selling of the loan, Lloyds admit they did not "do all that we could to make sure that you could afford your monthly loan repayments"

Their offer, despite the huge charges I've incurred through not meeting payments, not receiving a penny of my benefit for 6 months (the repayment, being more than the DLA ate it up) includes;
1. Refunding the Loan Protection Insurance (to the loan, not my pocket), which, being severely disabled, one would think I was ineligible for in the first place (and thus should never have been sold),
2. Reducing the APR to 0%, and allowing me to continue to pay £10 per month,
3. Refund my current account with "unpaid item and excess fees of £480," ...repaying my outstanding borrowing on my account. (Thru' Lloyds negligently taking the full monthly repayment amount instead of the agreed £10, has happened 5 times, to my expense)

This leaves me in the situation (if I'm silly enough to accept ;o) of £7,614.84, to be paid at £10 per month... Taking me 63 years! to pay it off...

On several occasions they have reverted the payment amount back to the original £280, putting me over my overdraft and making me incur extra charges.

Since hearing from the Customer Service Recovery Centre, my current account has been held with their Collections Centre, meaning I'm unable to use any other banking facilities and the Recovery Centre have not honoured our agreement to replace the loan with a new, interest free one.

My question is whether I've a good case for disputing the entire loan - not just the PPI, since they've messed me around and cost me in charges etc?

Kind regards,

Oggie

Oggie at this point i would firmly recommend you seek professional advice from a debt consoller they will be able to help you get the bank to work through a intermediary and therefore using payplan (i think) can ensure that the payments will only be for £10 every month and they can't hit you with additional charges.
I would apply to the FOS to investigate the loan as it sounds that you have a rough deal of it. I don't think you will be able to get them to write off the loan but it might get reduced. Hope this helps.

m.colak

Kaia wrote: »

Thanks m colak for taking the time to reply, congrats on the new baby !!!
Have done as you advised, and sent an email to FOS to check details of FREEDOM FINANCE to see if covered in July 2002.
Preparing a letter with the second template and reference to misrepresentation act as you suggest....letter as follows


Dear Sir or Madam,
Re: Secured Loan with G E Money Account number:
We are writing in response to your letter dated 15th January 2008 with regards the insurance sold with our secured loan.Yourreference is CC/

---

We do not feel your letter has offered a satisfactory justification that our policy was sold fairly, reasonably and within our best interests so we request that you look into our complaint again.
We request a copy of the salespersons financial background formal training etc, at the time the policy was sold.
We firmly believe the way in which this policy was sold was in breach of the 1967 misrepresentation act dealing in the area of neglegancy to the customers (our) needs.

If we do not receive a more favorable response within 14 days we shall be taking our complaint to the Financial Ombudsman.

Yours faithfully,

If that sounds ok , will post tomorrow and see what happens:T

Good Luck Kaia

m.colak

mortimerrankine wrote: »

Hi when i asked black horse for trainng records of staff members who sold me loans they replied they are not allowed to give out such information but all staff where fully trained to the financial services authority regulations as from jan 05 and my loans are after this date i am disabled and dont work and the loans were joint but the ppi was on as a single payment what do i do now

Remember you don't have to prove they mis sold the policy to you you can get them to do all the work. Don't start chasing individuals just concentrate on your next moves. If you have sent both template letters and also sent the one threatening FOS or court then do just that. Banks rely on the fact that people give up as it saves them money. Remember though if you go to the FOS first you can at any time revert to the court system if you think the process is too slow.

m.colak

I'm sorry but having to log off now and will be back as soon as possible for any advice i can give don't forget GT and Tiggrae give lots of really good advice check the thread your question might have already been answered. Good luck everyone am off to bring my son and wife home now.:j

katiekittykat

katiekittykat wrote: »

I wrote my 2nd letter to say I hadn't had a proper reply (an answer - they kept fobbing me off - with give us another 2 weeks etc)

They have replied telling me it has been passed onto another department, and sent me copies of the letters I have had fobbing me off. There is no address on these letters for the other department - what do i do now?

Can anybody help with this?

xx

freedom2b

I received my loan policy details back from Halifax to find that,yes I did have Personal loan repayments cover insurance... but on the aggreement I never signed either the"No" or "Yes" boxes to take out said insurance,they were both left blank yet they still went ahead and clobbered me anyway!!

I have just downloaded the next letter to claim that I was misold as 1, I never signed the agreement for cover and 2,I was selfemployed at the time!!

Any comments,also waiting for news from Halifax re reclaiming charges....I feel so jaded as you are meant to be able to trust these institutions...and they claim they look after you!!!

freedom2b

:j :j

m.colak wrote: »

I'm sorry but having to log off now and will be back as soon as possible for any advice i can give don't forget GT and Tiggrae give lots of really good advice check the thread your question might have already been answered. Good luck everyone am off to bring my son and wife home now.:j

:beer: Fantastic,congrats to you all on the birth of your son...First baby?

mattC_2

Hi All

My partner took out an Abbey Loan in March 2006 and we feel she was mis sold a ppp costing £3771.75, :eek: we have recently written to them requesting a full refund of the premiums paid to date using Martins template, yet they say they have not received such a letter, despite it being signed for on the 10th of January.

We obtained a settlement figure last Feb and it was only then we discovered my partner repayments were paying off the ppp before the actual loan :mad: we then requested the ppp be cancelled but the Abbey said that was not possible.

They are also saying my partner cannot give authority for me to speak to them regarding her account and if she wishes to cancel the ppp she will have to take out a new loan.......not a revised one! :mad:

Basically the Abbey are being difficult and not willing to assist in this matter........has anyone any expeirence with the Abbey that may help us.

Many thanks.