Letter from Lloyds re business ppi

miche66

I'm hoping someone can help.

My dad has just received a letter from Lloyds about ppi he had been sold on a business loan and he could be entitled to a payout. He needs to reply by 22nd December and he could do with some luck so I would obviusly like to help if I can. Does anyine have any advice as to what to do?

They also enclosed a questionnaire but this asks things from years ago. It fells like they want Dad to prove to them but I'm not sure. Any help would be much appreciated,

Many thanks

McKneff

I seem to remember something on here in another post saying that ppi cannot be taken out on business loans so be very very careful.


Im sure someone who knows for definite will be along to clarify.


You never need to use a company anyway for complaining about PPI, but you have to have a reason and be able to prove that you were miss sold the PPI. But, like I say, this is only for personal loans, credit etc.

McKneff

Are you 100% sure that this is Lloyds bank or just a scamming claims company who just happen to be called Lloyds.

dunstonh

Does anyine have any advice as to what to do?

The letter he has been sent is no indication that he is entitled to anything. It is a letter that explains the common types of mis-sale and gives him the opportunity to complain should he feel he has reason to do so. The letter allows Lloyds to start the 3 year time bar clock ticking.

They also enclosed a questionnaire but this asks things from years ago. It fells like they want Dad to prove to them but I'm not sure

Remember that there is nothing wrong with having PPI. A complaint is an allegation of wrongdoing. Whilst he doesnt have to provide proof, in areas where there is a lack of evidence or what is available (from him or from the bank) suggests there is no wrongdoing, then it will cause a rejection. So, if he does have anything to support his allegation then he should say so.

What does your dad wish to complain about?

I seem to remember something on here in another post saying that ppi cannot be taken out on business loans so be very very careful.

Yes it can be. However, it is a version of PPI that is tailored more to business owners and the self employed. (so allegations that it doesnt cover business owners or self employed obviously cant be used).

Insider101

miche66 wrote: »

I'm hoping someone can help.

My dad has just received a letter from Lloyds about ppi he had been sold on a business loan and he could be entitled to a payout. He needs to reply by 22nd December and he could do with some luck so I would obviusly like to help if I can. Does anyine have any advice as to what to do?

What you have received is a customer contact letter and it is not stating that he may be entitled to a payout. It is asking him if he had any concerns regarding the way in which his policy was sold to him.

If he does have any concerns then respond and tell them what they were and they will investigate. If not then bin it.

They also enclosed a questionnaire but this asks things from years ago. It fells like they want Dad to prove to them but I'm not sure. Any help would be much appreciated,
Many thanks

Well yes, that is the general way of things.Despite some of the very misleading publicity which surrounds the issue, receiving a letter like this is not just an offer of free money. If you were to respond it would be making an official allegation of misconduct against Lloyds. The questionnaire is designed for you to tell them what you think that misconduct was. It would be an accusation of missale of the product. A misselling complaint relates to events at the time of the sale. So yes, it would be years ago.

Advice is as per above.

EDIT: The letter would also probably have listed some of the common issues which may have been found to be failings with their sales. So have a look and think if any apply to him.

Insider101

McKneff wrote: »

I seem to remember something on here in another post saying that ppi cannot be taken out on business loans so be very very careful.


Im sure someone who knows for definite will be along to clarify.


You never need to use a company anyway for complaining about PPI, but you have to have a reason and be able to prove that you were miss sold the PPI. But, like I say, this is only for personal loans, credit etc.

You can have PPI on business loans, it's just a slightly different set of terms and conditions and sometimes sold under different names. It is generally sold to cover sole traders, or the partners/directors in very small partnerships/limited companies. It is also generally accident and sickness cover only.

miche66

Many thanks for all the replies.

I understand that the ppi is tailored to business but what thye have suggested is that there were various steps in their selling that was not properly done. Howvere, my dad did have problems with his loan but the questionnaire asks some very specific questions which as it all happened years ago he is not sure how to answer. My dad has never been what you would call financially savvy. He can ring them and I wonder of that would be best?

As for scamming, how would I tell if this was possobly some sort of scam?

Many thanks

dunstonh

I understand that the ppi is tailored to business but what thye have suggested is that there were various steps in their selling that was not properly done.

Read it again. It doesnt say what you are saying. If they knew it was mis-sold then they would have to automatically contact him and say so and pay redress. A CCL gives examples of how it could have been mis-sold. It doesnt mean it was. Its a prompt to let people know some of the reasons that may apply.

Howvere, my dad did have problems with his loan but the questionnaire asks some very specific questions which as it all happened years ago he is not sure how to answer.

The truth is a good way. Lies tend to harm complaints as some questions the bank will already know the answers to. If he cannot recall then he says as much. It is important not to make things up.

miche66

He would never lie but as I said he was unsure as to how to answer. He was worrid it might be a trick so they didnt have to pay out if that makes sense. I will go through the questionnaire and double check. Thank you for your help

Nasqueron

miche66 wrote: »

He would never lie but as I said he was unsure as to how to answer. He was worrid it might be a trick so they didnt have to pay out if that makes sense. I will go through the questionnaire and double check. Thank you for your help

There is no trick, they have to ask standard questions and understand people will not have a great memory of years back - if he is honest and has valid reasons for miss-sale that will be fine, if he makes stuff up or isn't clear he's guessing and they find contradictory evidence it destroys his case

Ianrobertwilson

I'm new to this and so I may be barking up the wrong tree.

Many years ago I had a Limited company of which I was the only director. I closed the company down around five years after I started it.

But in order to do so I had to pay off the loan that I took out with them.

I took out a loan with Lloyds Bank and they asked for some kind of security, which I supplied by way of endowment policies.

Lloyds also insisted that I had to have PPI, otherwise the load would not be granted.

I have written to Lloyds and explained that:

1). I was the only director
2). I was the only employee
3). The endowment policies were in my name only

They clearly stated that I was not entitled to any compensation.

Can someone tell me if I am entitled to any compensation and how do I go about claiming it?

Many thanks

Ian