Personal Accident Insurance - HELP!

jpnobes

I would be grateful for some advice about a financial problem that I have just discovered.

I am a LloydsTSB online banking customer. Yesterday I was reviewing my account, and noticed a D/D to a company that I did not recognise. It was made out to Consolidated Financial Insurance, for £9.37/month. This has been leaving my account every month for as far back as my online statements go. In the past I have have a graduate loan, and so I initially thought that it was a PPI policy that had not been cancelled.

So, I phoned the bank today. They said that the D/D was a payment to Consolidated Marine & General c/o GE Insurance Holdings. They advised me to write or phone GE to find out what the payment was for. I phoned GE insurance, who said that this was for a Lloyds personal accident policy, and was started in 1997! The address on their records was my old student address, which I left in 1998, and I have certainly never received any correspondence regarding this policy from GE. They advised to me go back to Lloyds.

In 1997 I was a medical student, and joined Lloyds bank in West Smithfield (which is now a trendy winebar!) as they were offering a 'good loan' at the time for students who opened an account with them. I borrowed £10 000. They sold me this personal accident policy at the same time, perhaps leading me to believe that it was loan protection? Perhaps it was their strategy at the time to lure students in with this offer, and then con them into buying the personal accident policy??

Unfortunately, I do not have any documents left from this time. Lloyds then told me that their records only go back 6 years, so they are unable to give me any details of why the policy was set up. (The advisor I spoke to today said that records beyond 6 years are destroyed.) But they did say that any specific PPI would be included with the D/D for the loan repayment, and thus be cancelled when loan is paid off. The personal accident policy with GE would run indefinitely.

I began loan repayments in 1999 when I qualified as doctor. In 2002 the repayments were reviewed by my branch (Holborn Circus), and the monthly payments (including PPI) increased - I finished paying off the loan in Oct 2004.

Needless to say, I have now cancelled this D/D. My bank have registered a complaint to be investigated, but said that it is very unlikely that I will receive any of this back. Which is annoying, as I think it will amount to at least £950!

Do you think that I should contact the FOS?

dunstonh

Needless to say, I have now cancelled this D/D. My bank have registered a complaint to be investigated, but said that it is very unlikely that I will receive any of this back. Which is annoying, as I think it will amount to at least £950!

You have no case. This is a standalone accident policy that has no link to any lending at all. It is pay as you go.

Do you think that I should contact the FOS?

That is your choice. However, what grounds do you have for complaint?

Been suckered into a fairly naff product (although some people like these policies) is not grounds for complaint.
Paying the premiums for the last 10 years is not grounds for complaint.
It was sold pre regulation for general insurance so there would be no records even if they were held. It would not have been sold by a financial adviser so you cannot complain about advice.

So, I cannot see you have any grounds for the complaint being upheld. You would be relying only on the goodwill of the bank or some evidence that it was not suitable for you (which is unlikely given the type of plan it is).

I dislike the product and lloyds sold it by the bucketload. I have many times told people to cancel the policies when I have found them. Many did appear to be sold around the same time as loans being agreed but there is no actual link so evidence of mis-sale is not strong and would be your word against theirs.

up2mischief

Did you get anywhere with Lloyds in the end? I have discovered a £10.54 per month payment coming out of our joint account from before we were married. I always assumed it was sickness, accident, redundancy insurance but it transpires that he can't remember what it was and has no paperwork for it. I therefore did a seach online and came across this post. He did have a car loan with Lloyds in c.1996. It seems like the same sort of thing.