Thread: Scatty85 vs. Lloyds TSB (mis sold PPI)

Hi,

I'm currently looking into whether I was mis-sold PPI as part of my loan with Lloyds TSB. I believe I was pressured into taking out PPI when I applied for the loan over the phone, I remember being told that I would not have the loan approved unless I took out the PPI as I'm young (I was 21 at the time).

I've recently sent s.77 a request and received an unsigned agreement back from Lloyds however the loan was taken out in June 2007 so s.127(3) does not apply in my case (very frustrating!)

I've been reading this guide and wonder if there is anything I can do in regards to the PPI on my loan.

I'm guessing I need to send them an initial letter saying I believe it was mis-sold to me and then an SAR request to reveal any recorded phone calls/documents etc.

Is anyone able to advise?

Many thanks!

you need to send a full SAR to access all of the info on your account.
If you claim that you were told that the decision of the loan would depend on whether or not you took the PPI cover, then once you have all of your info, use that as your reason for complaint.

If they claim you asked for the cover when you applied for the loan, request a copy of the transcript of the call.

Good luck

ps do everything in writing, don't ring them......

Originally Posted by Scatty1985

Right I have just had a very confusing letter back from Lloyds TSB about my PPI claim.

When I sent them an SAR they sent back an agreement detailing the loan amount, PPI, interest etc but it was not signed by either myself or the bank. They also included a signed direct debit mandate and a bunsh of screen prints. The loan was taken out June '07.

In this letter today they have said...

"Unfortunately I have not been able to find a copy of your signed agreement. Nevertheless I have absolute confidence that the systems and process that were in place at the time of your agreement was entered into meant that the loan funds would not have been advanced without the existence of a properly executed agreement. This means that, although I am prepared to refund the loan protection premium, I do not agree that the loan agreement between us is unenforceable or contravenes the Consumer Credit Act 1974 or any associated regulations."

They have then go on to explain the offer. They state that the Loan Protection Insurance was for £2201.16 and that their proposed settlement is in line with the recommendations of the Financial Ombudsman.

They are offering me a refund of £90.37 + 8% interest (total refund of £102.65) and to lower my monthly repayments from £228.60 to £223.28.

Perhaps I have misunderstood but I was expecting them to either refund me £2201.16 and keep my monthly repayments the same or refund me whatever I have already paid for the PPI and reduce my monthly payments so that they exclude and PPI payments. That way the payments I am making are as if I never took out the PPI.


The credit agreement they have for me says that PPI is £42.63 a month so if they accepted the latter offer my repayments would be £185.97 a month instead if £228.60.

Can anyone advise me if what they have offered me is correct or if they are trying to mug me off so to speak?

Thanks

Yes tell them politely to get stuffed and complain immediately to the Financial Ombudsman Service. IMO you are being short changed. Do not mess about and remember a complaint to the fos will result in the FOS charging them a fee of £500 (their loss) The FOS are currently upholding about 90% of complaints in favour of the consumer but with Lloyds it is more in the Region of 98%.

So keep up the pressure to recover you money

aa

How does this letter sound:

Dear Lloyds TSB,

Thank you for your letter dated 17th December 2009.
Contrary to your assertions, I did not elect to protect my risk by purchasing Loan Protection Insurance. Firstly I was mis-sold the insurance when enquiring about the loan, I was advised that I would not be accepted for a loan unless I included the Loan Protection Insurance because I was young, thereby leaving me in a position where I felt I had to include Loan Protection Insurance in order to be accepted. Secondly, since I did not sign a contract I never agreed to take out Loan Protection Insurance anyway, in spite of this it was included with the loan.

Since you have made an offer to resolve the complaint in full I can only conclude that you agree that the Loan Protection Insurance was knowingly mis-sold to me. This brings me on to my second concern, the offer.

Since I was mis-sold the Loan Protection Insurance a satisfactory and fair settlement offer would be to amend any future payments so that they reflect the loan without the insurance included and refund any insurance payments which have been made since receiving the loan plus a simple interest of 8%. I have calculated the following, which I would consider to be an acceptable offer, based on my circumstances.

Reduce monthly payments to £185.97 and refund £802.63.

Insurance payments made

17

Monthly insurance cost

£ 42.63

Total repaid

£ 724.71

8 % simple interest

£ 77.65

Total refund

£ 802.36

Your proposed offer is totally unacceptable and again contrary to your assertions, not in line with the standard redresses remedy recommended by the Financial Ombudsman Service. You really should review the following website and familiarise yourself with the Financial Ombudsman Service redress recommendations before making such bold statements.

online PPI resource, calculating compensation

It is quite clear to me that it was your intention to mislead me into accepting an unfair offer and enter into a Full and final settlement regarding this complaint.

It is now my intention to complain to the Financial Ombudsman Service about your conduct regarding this matter. I will forward to them all correspondents between us including this letter, the improperly executed agreement and my loan statements.

Should the Financial Ombudsman Service uphold this complaint in my favour, I will conclude that Lloyds TSB did knowingly mis-sell the Loan Protection Insurance therefore showing prejudice when accepting the loan.

I continue to consider this complaint open and unresolved.

Yours sincerely,


Angry man

Originally Posted by Scatty1985

Could the fact that I was mis-sold my PPI and never signed an agreement constitute to prejudice when taking this loan out. As the PPI is with Lloyds TSB it is in their interests to give me the loan as I felt forced to include their PPI.

Since I have no signed agreement does this not constitute to prejudice under under s.127(1)(i) of the CCA1974 and could lead to the agreement being declared unenforceable?

This will require legal support. I could research and help but not at this moment in time due to family issues.

I am sure there are issues on the unenforceable Consumer Credit Agreement issue but please be careful and check out before any action.

aa

I would concentrate on getting your PPI refunded in full, then look into whether or not your loan has an actual agreement. If you place the account into dispute and stop paying, they will just use your refund to pay off any arrears you have accumulated.

So the best approach is to get your refund first, then go for the unenforcability of the account

good luck