Thread: PPI insurance Lloyds tsb

Hi
I just joined this site and hope someone can help me, I have just found this out from my parents. My parents who are both pensioners took out a loan with tsb, for £8000 and they had LPI £1725.07 Total 9725 at 12.9% APR. this was 3 years ago. In March 2008 the bank contacted them if they wanted to renew the loan, which would pay off their credit card debts, and leave them with some extra cash.
So they went to the bank and after a short interview they were told they could renew their loan but it would cost them an extra £56.00 per month, so my parents were under the impression the existing loan they had and there credit card debt would be cleared and the new payment would be £270.50. but this is what happened.

The bank didnt consolidate the other loan, but took out another loan for them for £8,220.00 + £2325.38 LPI( which only pays on death) and the APR is 18.9%.
They are now paying £479.29 every month, with the rest of their bills it means they are now living beyond their means

They also told them they had switched them to a Platium account, and they lost their overdraft which they had had for 44 years, they are now in debt, and I am trying to help them, What can I do I would be grateful for your advice.
I am so furious with TSB taking advantage of them like this, because they too proud they have only just told me about this, it has affected my mum very badly, and made her quite ill. My Dad has gone back to work part time, at the age of 68 years.
I want TSB to pay for this!

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Originally Posted by kaz4

Hi
I just joined this site and hope someone can help me, I have just found this out from my parents. My parents who are both pensioners took out a loan with tsb, for £8000 and they had LPI £1725.07 Total 9725 at 12.9% APR. this was 3 years ago. In March 2008 the bank contacted them if they wanted to renew the loan, which would pay off their credit card debts, and leave them with some extra cash.
So they went to the bank and after a short interview they were told they could renew their loan but it would cost them an extra £56.00 per month, so my parents were under the impression the existing loan they had and there credit card debt would be cleared and the new payment would be £270.50. but this is what happened.

The bank didnt consolidate the other loan, but took out another loan for them for £8,220.00 + £2325.38 LPI( which only pays on death) and the APR is 18.9%.
They are now paying £479.29 every month, with the rest of their bills it means they are now living beyond their means

They also told them they had switched them to a Platium account, and they lost their overdraft which they had had for 44 years, they are now in debt, and I am trying to help them, What can I do I would be grateful for your advice.
I am so furious with TSB taking advantage of them like this, because they too proud they have only just told me about this, it has affected my mum very badly, and made her quite ill. My Dad has gone back to work part time, at the age of 68 years.
I want TSB to pay for this!

Oh hunni I am so sorry to hear of this.
They were vulnerable and was more than likely told they would be better off, how annoying and upsetting for you and your lovely parents hun.
Now I'm no expert on this as such and sure someone will come along and advise the best options, but as you know something must be done, and of course they have taken advantage of your parents which has left them worse off.

Maybe a letter to the bank would be a start, and if they do nothing to resolve this I would take it further with expert help and advice, they may be entitled to legal aid but you would have to check on this, other than that there is the Financial Ombudsman Service.

I would wait and see what someone says on here but what the bank has done is put them in a worst position than what they was at the beginning.

I do hope this is resolved hun.

Good luck.;-)

Di.
xx

Can you post all the loan figures so we can see if they are correct. Do your parents still have a copy of the earlier loan? If so can you post those figures too. If that agreement is unenforceable then it will impact on the connsolidation loan too.

If you haven't got the details of the loans send a Subject access request to Bank along with a CCA request for exoisting loan. Specify in SAR letter that you want a copy of the original loan agreement for both loans. Send request Special Delivery.

The PPI has clearly been missold given your parents age so you will be able to reclaim that plus interest. But it may also impact on the enforceability of the loan agreement.

Originally Posted by tinkerbell20

Can you post all the loan figures so we can see if they are correct. Do your parents still have a copy of the earlier loan? If so can you post those figures too. If that agreement is unenforceable then it will impact on the connsolidation loan too.

Hi,

Loan 1
£8,000 over 5 years @ 12.9% repayments £178.92.+ LPI £1725.07. £38.58 per month.
Loan 2
£8,220.00 over 5 years @ 18.9% repayments £264.79+LPI £2325.38. ££58.39 per month

Originally Posted by kaz4

Hi,

Loan 1
£8,000 over 5 years @ 12.9% repayments £178.92.+ LPI £1725.07. £38.58 per month.
Loan 2
£8,220.00 over 5 years @ 18.9% repayments £264.79+LPI £2325.38. ££58.39 per month

What is the wording

I.e what is the Total charge for Credit

Lona amount etc.

Originally Posted by tinkerbell20

What is the wording

I.e what is the Total charge for Credit

Lona amount etc.

Hi
not sure but have copy of second loan and below the key Financial info it has a box saying other Financial information like this

Total charge for credit

Cash Loan LPI Total Loan
4164.00 £1178.02 £5342.02

Anual intrest 17.48%