Lloyds PPI Complaint Response

Chemical_Grrl

Hi All


I've been dealing with my mother in laws PPI complaint and she has heard back this week from Lloyds, she complained about her loans and a credit card she had with them, the two complaints were dealt with by different people, they have upheld her loans complaint but rejected her credit card, both complaints were on the basis of the same reason for miss-selling and the same information regarding her employment and benefits available to her at the time. She was entitled to 6 months full pay and 6 months half pay if she went off sick and she was entitled to redundancy pay if she was made redundant, according the response from Lloyds credit card this was insufficient therefore the PPI was not miss-sold! I don't see how the same company can reject one but pay the other, I'm thinking of contacting them to ask them to reconsider the card complaint before I refer it to the ombudsman, can I have your thoughts/advice? Has anyone else had something similar? Thanks

dunstonh

I don't see how the same company can reject one but pay the other

Loan PPI is different to credit card PPI. For example, loan is single premium, front loaded and added to debt. It often only covered one year repayments rather than the full term. So, it has "product" problems. Credit card PPI is monthly premium. That is how it should be. It can also have other failings but the issues are not as great as loan PPI.

The loan PPI could well be getting upheld for product reasons and not the reasons you complained about. The credit card PPI was likely sold at a different time than the loan PPI and also by a different person an also under a different process. So, just because there is a same logo on the paperwork, does not mean that the issues are the same across all their products.

Redundancy pay is not guaranteed and does not prevent credit card PPI from paying out. So, it is not really an issue when it comes to credit card PPI. Plus, someone paying PPI on their credit card means that they are not paying the balance off each month. People that do that tend to have little or no savings. So, generically, that indicates a financial need for PPI. So, I can see where their response is coming from in respect of credit card PPI.

You can never second guess an outcome from the bank and we dont have the benefit of knowing the audit trails that exist with each sale. The FOS can also be inconsistent in its approach. So, by all means continue but do understand that products are different and that is why the response is different.

Chemical_Grrl

Thank you, I hadn't considered that they were different products albeit under the same PPI branding and yes I can see the logic, its still worth pushing for an alternative decision before referring to the ombudsman, thank you for replying

-taff

You might as well send it to the FOS because you onlyhave 6 months from thir decision to do that. Don't get caught up in trying to change their minds so you lose sight of that.

magpiecottage

Chemical_Grrl wrote: »

She was entitled to 6 months full pay and 6 months half pay if she went off sick

That MAY help your case if you can prove it was a contracual right.

Chemical_Grrl wrote: »

and she was entitled to redundancy pay if she was made redundant

Chemical_Grrl wrote: »

Nobody making a PPI complaint I have seen has been able to produce contractual evidence of this. In any case, if the redundancy is because the employer has gone bust, the (by then former) employee may be entitled to it but would just be another unsecured creditor.

Chemical_Grrl

She worked for the county council so not much chance of them "going bust" also I have got the evidence confirming what she was entitled to at the time, in writing from her employer, we have complained to 4 providers and she has been paid 3 of those 4, total so far is in excess of £12,000!!!!