PPI Help

[thebloodster]

Hi I was wondering if anyone could give me some advice for my dad.

He took out a loan through Lloyds TSB with payment protection which has about 8 months left to run. He is now out of work but has been told the protection isn't valid as he wasn't working over 16 hrs when he took out the loan and apparently this is one of the conditions.

Can this be disputed as although he did inform that this was the case when he took out the loan he was told that it was still ok to take the loan and insurance out. The bank are refusing to pay now. Does anyone have any suggestions what to do?

Thanks in advance

[callumsgran]

Yes definitely! tell him to get it all back!
It was mis-sold!

[hellhasnofury]

Originally Posted by cillitbanger

Yes definitely! tell him to get it all back!
It was mis-sold!

I totally agree

[thebloodster]

After finally getting round to sorting this out I have composed the following letter with a little help from others on the site. Do you think it would be ok?!

"Ref: Policy Number XXX

I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

I took out a £2500 loan over the phone on 21st November 2005 and also bought a payment protection policy which would cost me an extra £391.15 over the life of the loan. The total amount of my premiums plus interest is £3374.20.

When I took out the loan, I was told that I had insufficient insurance protection from existing insurance or other means to meet the repayments should my circumstances change. After the advisors recommendation I purchased Personal Loan Protection Insurance at the same time as taking out the loan.

After becoming unemployed in January 2007 I applied to have my loan repayments covered by the PPI I had taken out (Claim No. XXX). However this claim was refused on the grounds that I “am not working in full time employment for at least 16 hours per week)

At the time of applying for the loan there was no mention of working a minimum of 16 hours for the policy to be valid, I was only asked whether I was employed. So as a result of being sold a void insurance policy I am requesting a full refund of all my insurance payments, plus interest, which total £273.96.

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.

Yours faithfully"

However my dad has now paid the 20 month loan off 8 months early so in theory he has also paid the PPI for the remainder of the loan. The figures are as follows:

Loan Amt £2891.15 (Loan £2500 PPI £391.15)
Interest £483.05 (Loan £417.60 PPI £65.45)
20 months repayment at £168.71 per month

Settlement figures
Capital plus interest = £1284.26
Early Settlement fee = £28.30
Insurance Rebate due = £13.20

Can anyone help with the figures in the letter and am I claiming the correct amount back? Thanks

[reidnet]

Hi,
Ohh Goodie a Lloyds TSB one again..lol ( sorry couldnt resist the dig at Lloyds..long story).

Right.. Even that the loan has now been settled in full, your Dad was originally misold the PPI policy at the time he agreed to takeing out the loan.

What I would do is pretty straight forward, Claim back the full cost of the PPI plus the Interest on It, when you have the total Figure you can deduct £13.20 from that total, and claim the remainder back from Lloyds.

When you send in your complaint I would send it to the following address, Cut out the middle man so to speak..

Customer Care Department
Lloyds TSB Insurance
Tredegar Park
Newport
South Wales
NP10 8SB

If you need any more info regarding Lloyds give me a shout, though I cannot post too much regarding Lloyds on open Forum but can PM info..lol

Good Luck

Ian

[thebloodster]

Thanks for that - seems a bit obvious now!!

[thebloodster]

My dad has had £377.95 repaid to him which he is happy with. He got a letter saying its being paid into his account which it now has been. I told him to give them a quick ring and ask why he didn't get the interest back. Don't know whether he will!! But its a great result after only one letter!!!

[honney]

Originally Posted by reidnet

Hi,
Ohh Goodie a Lloyds TSB one again..lol ( sorry couldnt resist the dig at Lloyds..long story).

Right.. Even that the loan has now been settled in full, your Dad was originally misold the PPI policy at the time he agreed to takeing out the loan.

What I would do is pretty straight forward, Claim back the full cost of the PPI plus the Interest on It, when you have the total Figure you can deduct £13.20 from that total, and claim the remainder back from Lloyds.

When you send in your complaint I would send it to the following address, Cut out the middle man so to speak..

Customer Care Department
Lloyds TSB Insurance
Tredegar Park
Newport
South Wales
NP10 8SB

If you need any more info regarding Lloyds give me a shout, though I cannot post too much regarding Lloyds on open Forum but can PM info..lol

Good Luck

Ian

hi i need some advice re LLOYDS i have 2 PPP1`S with them on a loan and a credit card i am now unemployed i hada yrs cover which has now finished but am still unemployes and in financial diffficulties i`m making token payments to both but would like to cancel the PPI`S as they are of no use to me can you advice me

[thebloodster]

If it helps here's the letter I sent which got some joy. Obviously change the bits to suit your needs.

Customer Care Dept
Lloyds TSB Insurance
Tredegar Park
Newport
South Wales
NP10 8SB


Dear Customer Services

Ref: Policy Number XXXXXXXXXXX

I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.

I took out a £2500 loan at your over the phone branch on 21st November 2005 and also bought a payment protection policy which would cost me an extra £391.15 over the life of the loan. The total amount of my premiums plus interest is £3374.20.

When I took out the loan, I was told that I had insufficient insurance protection from existing insurance or other means to meet the repayments should my circumstances change. After the advisors recommendation I purchased Personal Loan Protection Insurance at the same time as taking out the loan.

After becoming unemployed in January 2007 I applied to have my loan repayments covered by the PPI I had taken out (Claim No. XXXXXXXXXX). However this claim was refused on the grounds that I “am not working in full time employment for at least 16 hours per week)

At the time of applying for the loan there was no mention of working a minimum of 16 hours for the policy to be valid so as a result of being sold a void insurance policy I am requesting a full refund of all my insurance payments, plus interest, which total £443.40.

If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.


Yours faithfully

[hellhasnofury]

Originally Posted by honney

hi i need some advice re LLOYDS i have 2 PPP1`S with them on a loan and a credit card i am now unemployed i hada yrs cover which has now finished but am still unemployes and in financial diffficulties i`m making token payments to both but would like to cancel the PPI`S as they are of no use to me can you advice me

Hello Honey,

Just write a letter stating that you now no further wish to have payment protection insurance applied to the loan and credit card.

The loan may have been a single upfront loaded policy and they may refuse to refund. Which they may strongly argue about. That infact it did cover you for 12 months and it paid up. but I would agrue nevertheless

The credit card should be a monthly premium which you should be able to cancel with no problem.

I think if you try to reclaim the ppi that you have paid them, they will have a very good case to refuse. as you used it. It is still a very expensive policy for 12 months I think