Pantheon v Lloyds Tsb

[Pantheon]

Hello all

 

Another new member here, found this site by accident , and am very pleased I did.

 

I'm gonna have a good look about, and hopefuly post in the right threads.

I have a particular interest in the irresponsible selling of bank loans, and would really appreciate any help offered.

 

DMG

[Mr lex]

Hi Pantheon, and welcome to the Consumer Action Group

 

It sounds like your on the right track, having a good look around first.

 

There are a couple of good threads here for you to read :-

 

http://www.consumeractiongroup.co.uk/forum/natwest-bank/125525-natwest-shoosmiths-taking-me.html?highlight=irresponsible+selling+of+loans

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/49770-lloyds-irresponsible-lending-led.html?highlight=irresponsible+selling+of+loans

 

http://www.consumeractiongroup.co.uk/forum/word-banks/28791-banks-lot-luring-clients.html?highlight=irresponsible+selling+of+loans

 

I have put some more links at the bottom of this post that will help you find your way about the site. Above all, enjoy your time with us here on CAG

 

Hope this helps,

 

Lex

[MARTIN3030]

Welcome to the site.

Which bank specifically applies to your situation ?

[freakyleaky]

You can find a full list of all the different banks forums here The Consumer Forums.

Once you have read the FAQ's and site rules please start your own thread in the relevant forum.

Good luck.

 

 

 

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[Pantheon]

Thank you for your replies, certainly plenty to digest here.

In answer to Martin3030's question, the bank in question is LloydsTSB, and goes back to a loan in 2002, which I was sold, including insurance, when I was suffering from a mental health illness, which they were aware of.

 

DMG

[MARTIN3030]

Ok I will move your thread there-where you can keep us posted on your progress.Feel free to ask further should you need to.

[Pantheon]

Thanks Martin,

 

ARGH! I thnk I have accidentally misled you. The loan was originally with LloydsTSB, but was sold on to a DCA. It is only now that I am well enough to tackle the situation. Hopefully a brief outline of the details will help.

 

Like most people, I had bank loans, and while things were normal, they were not a problem. When I became ill, my employer finally stopped my wages after the statuatory time period. Things quickly became desperate, living on overdraft, food shopping on credit card etc.

 

In my confused state, I thought it was obvious to go back to the bank and get more money! :o. I arranged an interview with the manager of my local branch, explained everything,and I do mean everything. She was very happy to give me a loan, plus insurance,and I recall, tried desperately to sell me house insurance as well. At some point, sorry but I do have large memory blanks, I know I also signed up to a private pension scheme, as I thought I had to keep the bank happy.

 

Of course, there was absolutely no way of paying back the loan, my mental illness was out of control, and I have not worked since this time. Eventually they sold my debt to the DCA's.

 

 

What I want to do is begin to tackle my debt issues, but deep in my heart I'm sure I should not have been sold the loan, which also then stopped my original loan insurance kicking in, which would have protected me for at least a year.

 

I truly do not know which way to turn here, and have no idea how to begin tackling the issue. If anybody could advise me in any way, particularly where to start!, I would be so grateful

 

Pantheon

[Mistermind]

deep in my heart I'm sure I should not have been sold the loan, which also then stopped my original loan insurance kicking in, which would have protected me for at least a year.

 

 

The implication of what you have written is that the new loan replaced the old loan. Whereas the terms of the old loan would have protected your for at least one year's loss of earnings, the new loan did not. If you would explain how this difference came to be.

 

You made a clean breast to the bank re your health and unemployment problems, and as professionals bankers would have seen the high probability of repayment default occurring. It would have been better to have kept the old loan going to protect you from loss of earnings, while a separate new loan was agreed to give you money to live on.

 

This sounds very like the insurance mis-selling scandals of 15 years ago, where high-pressure insurance salesmen knowingly pushed products to enrich themsevles with hefty commissions, whilst knowingly and seriously damaging the interests of the client. The law of England came down foursquare against the insurance companies, who were forced to repay compensation to the customers. It was a laborious long-drawnout process and a similar campagin may tax your health and stamina. On the other hand Lloyds would be loath to have their dirty linen washed in public -- "Lloyds took advantage of a mentally ill customer", so hopefully they will settle without wrestling to the bitter end.

 

Others will no doubt read this and contribute comments, but you will need to explain the technicalities of the key issue, why the terms of the old loan protected you against income loss, and the new did not.

 

Good luck.