Business PPI from the 90's

Stewart_78

My father used to run quite a large business and in the early 90's he borrowed approx £200k to buy out his business partner who was demanding his half. Lloyds agreed to lend the money on condition that he took out life insurance which he recalls was around £300 a month (ouch). But he had no other options at the time. He has chased it a bit but is not getting very far. He has now been asked to write to 'Lloyds TSB Archive' and ask for the details of the loan and PPI. He hasn't kept any of the records unfortunately. He has been told that he should be able to claim, even though this is 25 or so years ago. Unfortunately he is in his late 70's and not so good on the detail so I'm trying to help if I can.

Does what he has been asked to do sound right? Also are there any good standard template letters we can amend for a business loan situation?

The staff at his local branch had told him they had lost the details but I was told by a senior manager the other day that the paperwork would be 'somewhere', they just can't be bothered to look for it.

Any help or advice would be appreciated. Mum looks about to go into care with Dementia so any spare money would help to look after her.

Nearlyold

Firstly Life cover is not PPI. Why do you think taking out the life cover to protect the borrowing was wrong? If your father had died and the bank called the loan in because the business was struggling due to your father's untimely demise why would this have been better than the life cover being there to cover the loan and help keep the business afloat? It's quite normal for lenders to insist on life cover being in place to cover business loans.

He can't claim on the policy because a) He is still alive & b)The life cover has presumably expired.
Assuming that you mean you are looking at putting in a complaint in the hope of getting a refund of the premiums you need to be clear on why you believe the life cover was miss-sold. Nothing you have said in your post indicates it was.

Stewart_78

I'm going on what he has been told and then told me. I don't know the full details as I was too young. He says his accountant at the time advised him that similar cover could be bought at a third of the price Lloyds charged him and that a charge could be placed on it without issue but Lloyds insisted that he take out their policy as a condition of granting the loan.

One of the reasons we need the details of the loan / insurance is so that we can look into this. I accept that I have confused life insurance with PPI.

dunstonh

Lloyds agreed to lend the money on condition that he took out life insurance which he recalls was around £300 a month (ouch).

Quite normal on commercial borrowing and allowed. It is also common sense.

He has chased it a bit but is not getting very far.

Nothing chase.

He has now been asked to write to 'Lloyds TSB Archive' and ask for the details of the loan and PPI.

Its not PPI.

Also are there any good standard template letters we can amend for a business loan situation?

1 - there is no wrong doing here.
2 - its not PPI
3 - a template about an unrelated product isnt going to help.

JudithTownsend

Can any body please advise me, I took out various loans with Barclays in the late 80's early 90's I believe I was paying PPI on them , Is it too late to try to reclaim them .Also I don't know the loan account numbers only the bank account numbers. Also the accounts have been closed for some years

dunstonh

JudithTownsend wrote: »

Can any body please advise me, I took out various loans with Barclays in the late 80's early 90's I believe I was paying PPI on them , Is it too late to try to reclaim them .Also I don't know the loan account numbers only the bank account numbers. Also the accounts have been closed for some years

Ask Barclays. There are no current deadlines but they are proposed. However, the issue of surviving documentation is the only thing that could cause problems here.