Thread: Lloyds tsb ppi

Hi Geordieboy

I think you'll find that they can only use the refunded amount to offset any arrears you have on the account and the rest you should be able to stipulate where it goes. Alanalana is the expert on these matters and I'm sure he will be able to confirm this for you - or correct me if I'm wrong!

Regards,

Landy x

Originally Posted by geordie boy1960

Hi all,

I have two calims against Lloyds for mis sold PPI. They have acknowleded one of the as mis sold and made and offer of repayment with interest,

This is good but you should ensure the interest is 8% simple interest added to the PPI payments made from the date they were made up to an agreed settlement date.

however they have stated that the money will be paid partly into the debt recovery section of the bank(as Im behind with my payments due to umemployment)

The banks are allowed to offset debt from one account to another so if you have PPI repaid due to mis-selling this money can be offset against other accounts you hold which are in arrears. The poiint here is that at least you will owe less on the accounts with arrears) with the remaining put into my current account, which my now soon to be ex-wife has had frozen. ( you may be able to contest this if the account is in your name only. If it is a joint account which seems to be the case if your wife has frozen the account then you may have to fight this with the bank)
I have a question - can they legally take tell me where the money is to be deposited, (If you have other debts with the same bank then yes they can offset your claim to recover against other debts) after all this was an agreement between lloyds insurance services and myself and the loan was with lloyds loans department. The second ppi claim will be passed onto the Ombudsman as I feel this was also mis sold but for reasons of there own they say it wasnt even though the conditions were the same.

cheers

I have highlighted in red and commented in blue.

Please post up any other questions.

Hope this helps you. I know it is a lousy scenario but do not lose hope and keep claiming.

aa

Originally Posted by geordie boy1960

Thanks for the advice, I was just hoping to use the money to wipe out a smaller loan and have one less thing to worry about !!

As the PPI has been found to be mis sold is there any chance of having the loan itself written off as I only took it out because i thought i would be covered for unemployment. The loan and ppi were taken on the advice of one of the banks financial advisors who invited me in to discuss my finances.

This has actually happened once in the north east but there has been no legal precedent set on the case. If you decide to go the same route there is no guarantee of success until the previous case is accepted into Law

aa

It happened in my home town, just wondered if anyone could point to anywhere I could get a transcript of the ruling !!

Im unemployed so legal aid could be an option

You might try a google search for the case

aa

Well that didnt take long. heres a copy of the report from my local paper. hope it helps someone.


Published Date: 01 October 2009 Shields Gazette

A MUM-of-three's landmark legal triumph could open the floodgates for millions of people to take credit card companies to court.
Lynne Thorius, 49, of Sycamore Avenue, South Shields, today said the decision at Newcastle county court to write off her £8,686 debt marked the "end of a nightmare".

Mrs Thorius is the first person to see her credit card debt wiped out after

as "unfairly" sold payment protection insurance (PPI).

All previous attempts to sue credit card companies over insurance policies have been settled out of court.

But because Mrs Thorius was the one being sued, rather than the credit card company, the case went all the way to judgement.

MBNA was trying to sue her for the outstanding balance on her Sunderland AFC-branded credit card.

Deputy District Judge Jacqueline Smart ruled that MBNA had breached the Unfair Relationships Act, because the credit card provider earned commission from the insurance company for the policy it had sold to Mrs Thorius – without telling her.

Now the landmark judgement could help people take credit card companies to court.

Mrs Thorius expressed thanks to her legal team for helping her achieve the victory.

She added: "This is the end of a nightmare. It has been hanging over me and my family for a long time and I just feel relief it is over.

"I'm happy the judgement may now help others who have suffered at the hands of credit card companies to seek justice.

"MBNA treated me appallingly from start to finish. I ticked 'no' on the PPI, but they applied it to my account anyway.

"When I had my hours cut at work from full-time to part-time and started to struggle to pay the bill, MBNA started to call me three or four times a day, even as late as 9.30pm or 10pm.

"MBNA were rude on the phone and one person told me to get another job, while someone else said they would repossess my house."

A spokeswoman for MBNA said: "This case was brought by one of the MBNA's agent. The judgement went against us for a number of reasons, in principle, because the deputy district judge felt the MBNA had not on this occasion provided the appropriate documents to the customer and as such was not able to rely on the clauses MBNA would ordinarily seek to rely on in these cases.

"The case is a county court case and each case is decided on its own merits and on the factual circumstances of each case. This does not set a legal precedent."

But,..... chief executive of the claims management company ................., which successfully defended Mrs Thorius, disagreed.

He said: "Now Lynne has won, the floodgates could open for millions of other people. This is a massive victory. It will change the way banks lend money and issue credit cards."

Originally Posted by geordie boy1960

HI ALL,
JUST A QUICKIE. I MENTIONED IN MY FIRST POST THAT I HAD TWO CLAIMS AGINST Lloyds AND THAT THEY HAD ACCEPTED THAT ONE OF THEM WAS MIS SOLD. THE LAST PAGE OF THERE LETTER WAS AN ACEPTANCE FORM. THIS MORNING I SIGNED IT AND WAS JUST ABOUT TO SEND IT OFF WHEN I DECIDED TO GIVE IT A FINAL CHECK OVER. IM GLAD I DID AS THE ACCEPTANCE FORM WAS NOT THE ONE FOR THE POLICY THAT WAS MIS SOLD, IT WAS IN FACT FOR THE ONE THAT THEY HAD OFFERED A TOKEN REPAYMENT OF INSURANCE CHARGES. HAD I HAD SENT THIS I COULD POSSIBLY HAD SIGNED AWAY SEVERAL THOUSAND POUNDS AS IM SURE THAT THEY WOULD HAVE USED IT AGAINST ME IN A COURT.
i HAVE WRITTEN TO THEM TODAY "POINTING OUT THER ERROR" AND ASKING FOR THE CORRECT ACCEPTANCE FORM.

PLEASE PLEASE PLEASE CHECK EVERYTHING OVER AND OVER AGAIN BFORE YOU SIGN ANYTHING. THEY USE WILL USE ANY AND ALL TRICKS IN THE BOOK TO TRIP YOU UP.

AS FOR THE ACCOUNT IN DISPUTE, I WILL NOW SEND IT OFF TO THE Ombudsman. I HAVE ALSO ASKED LLOYDS BY REGISTERED MAIL TO SUPPLY AN S.A.R. AS I THINK THIS WILL HELP ME PROVE MY CASE AGAINST THEM AS WELL AS IT IS MUCH CHEAPER AND EASIER FOR ME TO GET THEM TO FIND ALL THE INFORMATION I AM GOING TO NEED THAN FOR ME TO SPEND A FORTUNE ON PRINTER INK GETTING COPIES FROM MY ON LINE ACCOUNT.

CHEERS
MICK.

Well spotted keep them on the hook until you get your money

aa

Originally Posted by geordie boy1960

My first post stated that I had two loans with Lloyds.TSB, both with Insurance protection, and that when I was made unemployed I applied for the Insurance cover only to be told that

“Re: Loan Protection Insurance.
Thank you for letting us know about your recent claim.
We are sorry to tell you that on this occasion we are unable to accept your claim. This is because;
You are not covered for a period of unemployment following a period of casual or temporary work.” (They sold you the policy so they should have ensured you would be covered by the use of a demands and needs questionnaire. You should ask them to produce this by way of your SAR. This will then prove they asked you all the relevant questions to ensure you would be adequately covered by the PPI they were adding on to the loan)

As you know my most recent loan claim has been upheld but the loan from 2005 has been rejected for the reasons stated below.

Thank you for contacting me about your concern regarding your Loan Protection Policy.
I would like to apologise for the delay in responding to your concerns. I have carried out a detailed review of your complaint so that either I can resolve your concerns or issue a final decision letter in which a full explanation is provided on behalf of Lloyds TSB Bank PLC.
You took out a personal loan on 25th April 2005 for £20.000.00 and elected to protect your risk by purchasing an insurance contract for a one off premium of £4421.83 plus interest. (again ask them to prove you elected to protect the risk by production of a demands and needs questionnaire)
You’re Concern
You have advised that you believe you were miss-sold as you were not advised that you had to be employed for twelve months in order to make a claim.
My Findings
Lloyds TSB processes required sellers to explore employment position with customers in order to ascertain (demands and needs again they should produce a copy of the questionnaire to prove the correct questions were asked and you should have received a copy of the questionnaire requiring you to initial all the answers you provided on the phone)
1. Whether the customer was eligible for the policy.
2. The cover which the customer would be eligible for under the policy at its start date.
If a customer is eligible at start date as our evidence suggests you were then your employment status could change during the course of the term and the cover available under the policy would alter.
Your employment status does not affect the benefits which you may obtain under the policy. Your ability to claim for unemployment cover would depend on your circumstances at the time of any claim. In the absence of any further detail from you of the particular aspect of your employment history or status that you complain should have been discussed, I’m afraid I have no alternative other than to reject your complaint.

(And you have no alternative other than to complain to the Financial Ombudsman Service)

The letter then goes on to state that when I bought the policy it was explained to me (ask for proof of this ie tape or transcript of the conversation) that this rebate was “on a sliding scale” due to the claims risk being greater at the beginning of the loan, and if I choose to “cancel” the policy I would get a rebate of £20.44, but as a gesture of good will because “I’m a valued customer” (PLEASE DONT LAUGH) they would backdate it to the date of my complaint.

Is it just me or have the totally got the wrong end of the stick. I never wanted to cancel but to claim, and the fact that I have always been a contractor who by its very nature I would find myself in and out of work , and have been telling them that since the mid nineteen eighties

Anyway they have also stated that this is their final response and my complaint will now be closed, (Closed That's what they think Straight to the fos with copies of everthing exchanged so far by letter. The more information the FOS have the better so copy all of your Agreements, letters, terms and conditions absolutely everything) and should I wish to do so I can complain to the FOS. As I have already said I weill be doing this and I have sent for an SAR so i have all the information to hand.

Any comments gratefully recieved

All the comments are above just to assist. Get the information copy everything at least twice or keep electronic copies so you can produce more and also ensure you have everything backed up.

It is not unknown for FOS to misplace tons of paperwork

aa

subbing

No consellation but that letter is a standard copy and paste whichever [paragraph from the standard list might fit the complaint - get the fos ball rolling as soon as possible they have been known to roll over as soon as the FOS get involved not all cases but some they do

If you give them a call outlining your complaint you will get a case number straight away and they will send you a complaint form already partly filled in with the outline of your case that you can change if you need to but it does mean you will have a reference number to quote at Lloyds.