Thread: PPI Insurance on Bank Loans

Can anyone advise on the validity of PPI insurance in light of originally being advised that the insurance could be cancelled at a lated date? Enquiries sometime after the loan was originated resulted in me being told that this was NOT the case. Do I have cause for complaint & refund of the PPI portion of the loan?

Any help much appreciated.

Mike

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I have a slightly different problem with loan protection. I took out a Lloyds TSB loan in 2000 (or Dec 1999) for £6950 to consolidate credit cards etc before I bought my first house. At the time I was an IT contractor and therefore unable to claim on payment protection insurance. I noted (& signed) on the loan form that I didn't want loan protection and was given another form to sign to say that I had been offered protection but declined. The term of the loan was for 5 years and the repayments were £198.00 a month. Whilst sorting out some filing in 2004 (September / October) I found some documentation sent to me after the loan was set up and paid. This stated I was being charged for payment protection of more than £30.00 a month.

I'm currently contesting £12,000 of charges with LTSB on current accounts at the moment, so you can guess I've had a number of brushes with their customer services department over the years. During a conversation with Collections in Brighton, during which they we're suggesting I merged the current loan (due to expire in December 2004) and my overdraft into one loan product I mentioned the loan agreement to the operator. A week or so later I was in an LTSB branch and I saw on screen the operator (who I had spoken to from the collections centre in Brighton) had written [I] 'must not be shown a copy of the loan agreement'.

That evening I wrote to LTSB asking for a copy of the loan agreement. I was told on the phone this was not possible. I then wrote again saying no money was to be paid against this alledged agreement until a copy of the agreement was provided to me. I then received another call stating they were not able to provide me with the loan agreement 'but they were still looking'.

I sent a SAR in December 2004, but nothing ever came of it and the payment was by postal order (a mistake, I know).

I then saw from my statements that they had taken £396.00 (two payments) from my current account in January 2005, even though I had expressly stated in previous letters that this was not to happen without an agreement being either sent to me or being available for me to view. This prompted an extremely strongly worded letter, from which I received a response stating that they were entitled to do this (is this right?)

I eventually received a letter from LTSB insurance, saying they would pay back the whole PPI amount plus interest paid (£1650 + £700ish interest) back into the loan account. The loan by this time (after the theft of £396 in January 2005) had completed so this wasn't an option. I then received another offer to pay this back into my current account - which I agreed and sent in a signed form they had given me. They then refused to pay the 'interest paid' part and at the same time my current account was closed (Jan 2006). Since then I've had numerous debt collection agencies chasing me for overdrafts on two accounts (£500 & £2500) respectively, all of which I'm fighting at the moment as the charges for the accounts are £5000 & £7500 respectively.

What I want to know is, how do I get them to cough up the £2350.00 for payment protection insurance given the history I've quoted above?

All comments are eagerly waited for!