Lloyds Packaged Account on Deceased Estate

yogi01

I am dealing with my recently deceased brothers estate. I am his NoK, he was not married, had no children, did not own a property. He had no savings and two small pension schemes which he had not started to drawdown as he was too young. 

I also found out that Lloyd's Bank have probably missold him a very expensive bank account in 2012. My brother was later on in debt, overdrawn at Lloyd's and they still charged him monthly for his Platinum packaged account. I ended up arranging a DRO 4 years ago. I was gathering evidence to challenge Lloyd's on behalf of my brother before he died. Lloyd's bank are now saying they will not investigate unless they see evidence that I am the executor of my brothers estate (which I think will cost around £215). Oddly they were quite happy to close his bank account with a balance of £7.13 and send it to me without asking for Executor evidence! 

Given my brothers small estate and lack of assets are Lloyd's allowed to request this, and for me to pay out just for them to check if any mis selling has taken place? I feel it is just one of their many ways to make it difficult to claim.... just look at the way you have to access any Lloyd's correspondence via Resolver.
Any advice, or someone having a similar problem. 
Thanks, Marcus 

[Deleted User]

Yes, they can request it. They need evidence that you have the right to deal with his estate. 

Don't use Resolver to deal with any company as it just acts as another barrier.

yogi01

Thanks for reply. But they didn't ask for anything when they closed his bank account and paid the balance direct to me. Their website mentions £50k as a threshold as well? I could possibly understand it if the claim was successful. Even if it was, I don't think it would be that large an amount. 

[Deleted User]

yogi01 said:

But they didn't ask for anything when they closed his bank account and paid the balance direct to me. 

They should have, but it doesn't seem worth trying to reverse the payment at this stage, since you'll end up with it at a later date in any case.

Thrugelmir

yogi01 said:

Given my brothers small estate and lack of assets are Lloyd's allowed to request this, and for me to pay out just for them to check if any mis selling has taken place? 

That's going to be extremely difficult to prove. You'll need more than personal opinion to argue a case. 

yogi01

My brother told me what happened before he passed away. I also have all the paperwork, plus signed tick box questions and the answers he gave (at the Lloyd's branch), clearly showing he did not need most of the 'extras' from a packaged account. 

longjohnjohnson

Almost zero chance of winning a misselling complaint.

By your own words, not needing most of the benefits means he needed some of them.

About 7% of FOS complaints about packaged accounts get upheld, pretty much the lowest uphold rate for any FOS complaint category.

Thrugelmir

yogi01 said:

My brother told me what happened before he passed away

So all you have is your word. Not a sworn statement by your late brother. 

Rodders53

Probate fees are £0 for net value under £5,000 Estates - see  https://www.gov.uk/government/publications/probate-fees-from-april-2014-pa3 

If that helps at all?  

yogi01

Thanks, will check that out. 

dunstonh

I also found out that Lloyd's Bank have probably missold him a very expensive bank account in 2012. 

So, you were present at the meeting when he was sold that account in 2012?   If not, what evidence do you have to make that allegation?   You say he told you but that is not evidence.  Whilst evidence is not required to make a complaint, the available evidence will be considered and will carry more weight than an allegation by a third party who was not present at the meeting.

There is also the potential for time bars here.  The reason so few PBA complaints succeed nowadays is that the banks sent out annual benefit statements, starting around a decade ago.  They are considered sufficient to allow the 3-year time bar clock to start ticking.    Statistically, that will be the probable outcome of the complaint if you do provide evidence of being an executor.

Oddly they were quite happy to close his bank account with a balance of £7.13 and send it to me without asking for Executor evidence! 

Small estates claim allows that unless probate is being obtained.

Given my brothers small estate and lack of assets are Lloyd's allowed to request this, and for me to pay out just for them to check if any mis selling has taken place<br>Absolutely correct for them to do so.   The assets are irrelevant at this stage.  It is about checking whether you are an eligible complainant or not.  i.e. do you have the legal right to act on behalf of the estate.

 I feel it is just one of their many ways to make it difficult to claim.... just look at the way you have to access any Lloyd's correspondence via Resolver.Resolver is irrelevant.  It is a marketing tool by a third party that makes that third party money.    Firms choose to interface with it the best way they can but it may not always be easy for them to do so with their own software.