Thread: Lloyds TSB Loan Protection Advice Needed

Hi there, I use these forums quite a bit as a guest to guide me over any issues I'm having and they have proven quite helpful.

Thanks to these forums, I have been in touch with Lloyds TSB to get my loan protection refunded after it was forced upon us when we took out a loan with them in 2005.

I received a letter yesterday saying they were prepared to refund the whole loan protection amount, in full plus any interest.
HOWEVER, they are only prepared to pay it on to the loan which I am far from happy about.

I have rang them and spoke to them about this and they are not prepared to budge.
They claim that it would put me back in the same financial state as I was in before the payment protection but I don't see how this can be.

If they hadn't forced us to take the protection I would have been £25 per month better off, and that money would have been in my account and I would have been able to use that money as I saw fit.

Also, doing what they said would mean my loan would be ended earlier than the agreed 5 year term.

Surely they cannot get away with this.
Isn't it up to me to decide if I want to use the money to end the loan early or not?

The loan was agreed for 5 years, so who are they to say they are paying my loan off with what is rightfully owed back to me.

If they hadn't been taking loan protection from my account in the first place, my loan repayments would have been £101 per month instead of £126 per month, so how do they reckon I would have paid more on the loan and therefore would be back in the same financial position?

What utter rubbish they chat.

I want my money back in my account from whence they took it, how the hell can they get away with arguing different????


I was so angry with them on the phone that I told them if they do not refund it, they can say goodbye to a customer, and the rest of the balance on both loans.
I know, I wont win that way but I was so annoyed.

I could really use this money right now and I am sooooooo P*ssed about how they think they can do what ever they like.

I told them I am taking this to the Ombudsman, and all they said in there typical smarmy tone was go ahead, you will find we are entitled to do this and paying the money into your personal account is not an option.
They also said that had the loan been paid off already, they could have refunded it to me personally.
Yeah more like they could have gotten out of it altogether.

They were bloody quick enough to take the payments from my account though I notice, but don't like giving back what they have stolen.
In my book this is no better than theft.

Grrr I'm so angry!!!!!!

I see it this way,

If I wasnt mis sold / forced to have this stupid loan protection, that money would have been available to me and would never have been taken out from my account in the first place.
My monthly loan repayments would have been less as a result, and I would still have paid the same ammount back in the same time frame as I have now.

If £25.45 of what I pay a month is in loan protection, then only £101 is actually paying the loan itself, so how do they work out I would have paid more off by now which is basically what they are saying to justify paying the owed amount onto the loan?
aparently, it would put me back in a fincancial state I would have been in where it not for the loan protection.
Jesus, and these people do our banking for us? I think they should go back to using an abbaccus I think because clearly they can't caluclate worth a squat.


Grrrrrrrrrrrrrr....

Has anyone else had this problem...
Has anyone else had the money refunded to them and not on the loan????


Grrrrrrrrrrrrrrrrrrrrrrrr rrrrr

If push comes to shove, I'm quite prepared to flaunt my case in my local branches of Lloyds tsb which should put off anyone in there who may be looking for a loan. If they think they are robbing me and getting away with it, they are sadly mistaken.
Wonder how much money they'll lose when people decide not to take out loans with them based on what I have to shout about.

Oh and then will come the website aimed directly at Lloyds tsb and their loans.
I'll make their lives hell if I have to.
Did it with another company who wouldn't play ball and won, so I'll do it again if needs be.

I don't take kindly to being played for a mug, especially not when £1,500 of my hard earned is being brushed under the carpet.

Hiya PCClinic. I have just won a case with the fos for PPI and the way it works is Firstly the company have had to recalculate my loan as if I had never had PPI then they have to pay the difference between the loan with PPI nad the loan without PPI and then add 8% interest for each year that I have had the loan.
So you say that the difference was £25 a month they have to pay you that back for each month you have paid it plus interest and the rework the loan.

Hope this helps you

olives xx

Thank you, that was a most helpful post indeed.

This is taken directly from my loan agreement:

Cash Loan To Me
£3,950.00

Monthly Loan Repayment
£101.02

Loan Protection Insurance
£994.48

Monthly Loan Protection Insurance Repayment
£25.43

Total Loan = £4,944.48
Total Monthly Repayments = £126.45


At the bottom of the agreement is also says.....

Price of Loan Protection Premium = £994.48
interest on Loan Protection = £531.49
Total Price of Loan Protection = £1,525.97


I will have had my loan with Lloyds TSB for four years on march 4th 2009 so by my estimation the following apply...

Minimum repayable to me based on 4 years worth of payments

PPI Refund = £795 - (£25.43 x 12 months x 4 years)
Interest On PPI = £425 - (£531.49 total devided by 5 years times four years)

Total Refund = £1,220

Thats how I would work it out anyway... but I dare say they'll do it differently.

Obviosuly I only want to claim back what is rightfully owing, I'm not a greed monger, so by rights, they should only refund me for the four years I have been paying.. Correct????

But overall, it's not the amount that's owed that's cheesing me off so much as they have decided that they are going to pay my loan with it.
I took out an agreement for a five year period, surely then it is up to me whether or not I wish to end early or continue paying monthly.

A lump amount would come in handy for me right now with my car on the blink and the kids rooms need decorating amongst other things.

Had I not been paying these extra wasted £25's every month, I could have saved them up.

This is really causing upset for my partner and myself.
We had banked on getting this money back and although we had not actually spent it before we got it, we had made plans to use it.

I will NEVER use Lloyds TSB again after this. I would rather stuff my money in my mattress than let these dogs anywhere near my finances again.

UPDATE

Tut Tut Tut.... Oh deary me Lloyds TSB...

Been checking over our credit card statements and guess what I see....
Yes you've guessed it,... Payment Protection Cover.

I've never really looked at the statements beyond the balance and amount due.
I can't even remember how we got the card, whether they offered it us, or we applied or what.
What I do want to know is, did we agree to PPI or not when we took it out.

Would a SAR reveal this and which SAR would I send?

What I do know is we were unemployed at the time of having the card making payment protection useless just like the loan payment protection on the loan is.
I certainly don't recall anyone telling us about any payment protection, or explaining how it covered us or whether it was of use to us at all, which it is now clear it wouldn't be since we wern't employed (hence the loan PPI claim).
I would think that in itself constitutes a mis sale doesn't it?

Thanks.

Well Lloyds TSB, all I have to say is this...
All we wanted was our money back, now you get a war.

Yes an SAR will be most helpful with the credit card as you can calculate how much is owed. An SAR for the credit card will send you all your statements for the past 6 years. You seem to have a good case with being unemployed when this was taken out

olives xx