Was I mis-sold A loan and PPI ??

mcd382 · 14th March 2007, 19:08

Well,I was'nt sure I could go ahead with this but after reading some of these threads,some are just unbelievable.H ow have they got away with it for so long,back in the 60s the great train robbers got 30yrs.for less.
Anyway here goes.Was I mis-sold this loan and ppi if so how do I prove it.My wife and I have held a current account with LloydsTSB for over 30yrs.
In 2004 we were 'invited' to call into our branch to discuss our finances,which to be honest were a bit overstretched.The wife,bless her said no,while I trusting soul that I am or was went down cap in hand.The interview/sales pitch took place 1 to 1 in the bank,where I was persuaded to pay-off my credit and store cards and an existing loan with the bank in exchange for a much larger loan.I was told I would be better off.I can't recall much about the conversation,they don't dwell on some matters do they.
I came out with a loan forover £15,300 plus PPI for £3280 all repayable over 7yrs.The thing is,I was 66 yrs old then,working part-time.I don't know what cover I am paying for on PPI,but I do know now that the only claim I can make is when I die to pay off the balance.The repayments are £313pcm of which £55 is PPI. I am no longer working and the loan is crippling us.Can anybody advise,or help clarify where I stand,apart from in the corner with the cap on.

reidnet · 14th March 2007, 19:18

Hi,
You were 66 Years old at the time they sold you PPI ??..

Will have to look at Lloyds Terms and Conditions and get back to you on this one, I am almost certain that a condition of most PPI policies is that you are under the age of 65 , I have seen some where there is another exclusion which Im sure states that you will not reach 70 years of age during the agreement. As you were 66 at the time and a 7 year loan term I think you will have a good case..

I will get back to you ASAP.

Ian

mcd382 · 14th March 2007, 19:30

I have the policy here you sre only covered for life insurance if over 65, and if you reach 70 your cover is limited to10yrs

reidnet · 14th March 2007, 19:34

Just found Lloyds Current PPI Terms and conditions, which appear to have changed from the one I originally had. I would check the terms and conditions of the policy that you were supplied with at the time of sale.

I was sure that the age limit was 65, I will have to have a hunt about here and see if I can find the copy of the policy that I was supplied with in 2003.

It is of course worth while complaining about the sale of the policy though.

Ian

http://www.lloydstsb.com/media/lloyd...11848_0107.pdf

reidnet · 14th March 2007, 19:38

Sorry just read your reply after I posted that last bit..lol. Obviously Lloyds have now changed their policies.

I would complain to them on the grounds that you were only covered for Life Cover and not full Payment Protection as you were under the impression of being sold. I would also state that if you had known this at the time you could have purchased seperate life cover at a fraction of the Cost. They have basically sold you a very expensive Life insurance Policy...

And who does the policy Protect...Lloyds TSB and not you , they want to make sure that they get repaid, as you would not benefit from the policy.

Ian

mcd382 · 14th March 2007, 20:03

The policy states that it cannot be cancelled without cancelling the loan. I this legal,can they enforce it

reidnet · 14th March 2007, 21:00

I doubt if they can enforce it, What they normally try to get away with is to state that the only way that they can cancel the PPI is by Cancelling the whole Loan and take out a new loan without PPI, They tried that with me, But i declined, They eventually refunded the PPI with Interest in full by cheque and the loan payments remained the same.

It is deffinatelly worth folowing this one up with them. There is a lot of Publicity etc and Complaints re PPI at the momment.

Ian

mcd382 · 14th March 2007, 21:30

OK.Thanks for the advice Ian,I will write to them,is there a way to let them know I am serious.

reidnet · 14th March 2007, 23:06

No Problems, you may have gathered Ive got a Bee in my Bonnet re PPI..especially with certain companies..lol

Good Luck and keep us informed on your progress.. And if you need any help dont be afraid to ask or PM..

Ian

mcd382 · 21st March 2007, 00:34

Afraid I've not sent my letter yet.I was chomping at the bit last week and raring to go but I decided to wait for my CAG labels.the labels arrived then my printer died.All this gave me time to start wondering if my case is as strong as I initially thought.I have all the documentation,the loan agreement and the PPI policy.Each time I read through them I feel more unsure of my position.
Everything is there in black and white,the Optional clause,the Exclusions,warnings about reading the small print and the cooling off time also my signature but none of this was talked about at the time and I was 66 at the time so only the life cover could ever have been claimed for.I just need some reassurance before I go for it.
Ray

reidnet · 21st March 2007, 01:02

Yeah Ray,
It says all that on My Documents too.. But I am fighting this to the Bitter end. After all what do you have to loose ?

Ian

mcd382 · 21st March 2007, 01:09

I think I am still going to give it a go.As I said my printer has died is handwritten acceptable

reidnet · 21st March 2007, 01:11

Yes Ray Hand written would be acceptable,

If you have the letter in a Word Document you could email me them and I would glady print them off for you and post them to you.

Ian

mcd382 · 21st March 2007, 01:17

Good thinking batman,you can give my letter the once over at the same time.I'll do that tomorrow.Must climb the wooden hill now,work in the morning.Thanks Ian.
Ray

Keith22 · 21st March 2007, 10:28

Hi,

Can you clarify a few things which may help. I have been involved in a number of PPI claims and I have just discovered one that may possibly be similar to yours. Was the policy actually for PPI or for Life Insurance. I think LLoyds call the former Loan Payment Protection Insurance. You will need to find out who the underwriter where. I had this situation myself and I think there may be subtle differences between the two types of policy. The claims I had for Protection Insurance were eventually refunded by Lloyds themselves after I went to the FSO, but the other policy I had (which turned out to be life insurance in the end although I assumed it was PPI) to cover repayment of an overdraft was treated differently. In this case Lloyds themselves got a cheque back from the underwriters which they then sent on to me. The FSO were not involved in this claim - Lloyds themselves did all the work to get the money back for me although though they originally sold me the policy.

I hope I haven't confused you but I think it is important to find out exactly what you were sold in terms of insurance to find the easiest route to make your claim. Incidently my insurance were set to run way past my 70th birthday but this ws not the reason for claiming mis-selling in my case. I won refunds because I was not informed that the policies were optional and secondly I had previous medical conditions which made the policies worthless and the Bank had not checked this point.

mcd382 · 21st March 2007, 11:21

Hi Kieth,
Just got in from work found your post.The policy documents definitely say Loan Protection Policy Documents.

mcd382 · 21st March 2007, 11:39

the underwriters for loan protection policies is.Lloyds TSB General Insurance limited

Keith22 · 21st March 2007, 11:51

Ok - then as I understand it you signed for this policy in 2004. Here's what the FSO said in my case: " Whilst I note your comments (this to the Bank) that terms and conditions were sent to the complainant and that he had 30 days to cancel the insurance should he no longer require it, the fact remains that an individual is unlikely to cancel something that has been recommended to them by a finacial services professional and that recommendation has been taken on good faith."

So I think you need to worry unduly about the T & C.

Here is a paraphrase of another bit of their ajudication

"The ABI code at the time required intermediaries recommending policies to use their best endeaqvours to ensure that a proposed policy was suitable and that all essential provisions / restrictions of the cover of the policy were explained to customers. Futhermore the GISC Code takes this further by suggesting that if a policy cannot match all requirements then enough information will be provided so the customer could choose whether or not to taske out the policy."

You won't be able to quote these bits as they are specific to my case but they at least give you an idea of the FSO's thinking and on the face of it you seem to have a good case. I would suggest that once Lloyds give a Final Repsonse letter you go to the FSO (it doesn't cost anything). You have to submit your case in writing and it is important that you get this right as the case

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