LloydsTSB PPI - Single Premium

[Red76]

Hi - I am starting the claim process with LloydsTSB on a number of loan and cc accounts.

 

Two of the loans I had were taken out when I was postgrad student - 1st in 1998 and 2nd in 2003. LTSB have given me the details of both loans.

 

I wasn't able to access their professional studies loan option but they did give me the regular loans.

 

Both were sold in branch by advisers who were supposed to be knowledgeable about student finance.

My only income was a research council grant and from occasional teaching at the university which was irregular.

I have used this as my main complaint reason.

 

However, on both loans the ppi was added at the start and paid for with an additional loan, to be paid off with the general loan. I paid one DD.

 

Is this what is meant by single premium, or front-loaded, PPI? And, if it is, is this generally regarded as a credible reason to complain about mis-selling on its own merit?

 

Many thanks

[mad_dr]

This is definitely front-loaded single premium PPI, yes.

 

As for whether by itself it was missold, I am not sure. I'm preparing my own claim at the moment for the same type of policy from Lloyds and am trying to ascertain the same thing. Given that there are many people on this forum and others who have been rejected by Lloyds and given that - as far as I know - Lloyds' PPI on their loans was usually of this type, I can only assume that either:

 

1. These people worded their complaint wrongly and didn't put enough emphasis on the single premium aspect or

2. Lloyds doesn't consider single premium to constitute miss selling in itself or

3. Those folks had a different type of PPI.

 

Thanks.

[dx100uk]

a loan is a loan

99% were front loaded

 

std claim

FOS CQ + SOC + covering letter.

 

dx

[ukaviator]

Hi

 

You have been mis-sold due to the inflexible and expensive nature of the product.

 

There are two types of PPI.

The first type is the regular premium PPI.

This is where the cost of the insurance is just added to your monthly payments.

 

The second type is the single premium PPI.

This one adds the total cost of the insurance over the duration of the loan to the actual amount borrowed.

It is expensive because it attracts interest in the same way as the loan.

 

They don’t usually explain this to you, because if you would have known that you are going to pay that much, you probably would have declined the insurance cover.

 

Also they should have explained to you that you could go elsewhere for PPI at a cheaper rate.

 

So get claiming it back with the interest, you can go back further than the 6 years by using the Limitation Act 1980, section 32(a) (b) and ©...

[Red76]

Thanks for the info. Any views on the student issue - I would like to think that this is an instance of mis-selling too?

Clearly I wasn't studying finance and accounting...

[dx100uk]

i think the main reason should be told you must have it

 

just fill out the fos cq

 

dx