Lloyds TSB - Mis-sold PPI on loan

[olekingcole]

Hi there,

I am hoping someone with more knowledge than myself can help with this.

I took out a £15k loan in Jan 2010 and was mis-sold PPI at the same time. The loan application was processed whilst in a meeting with someone at my bank. The bank rep was late to the meeting and told me he had another appointment to get to. The entire meeting was rushed and I was barely given any time to read the paperwork I was signing. I was told that PPI was mandatory and gave Lloyds peace of mind that the loan would be repaid if anything bad happened that meant I couldnt work etc... I was told that the loan was unlikely to be approved unless I took out this policy. As such, I was pressurised into taking out a policy I neither understood or needed.

I bought this up at a recent meeting in my branch and the advisor I was speaking to cancelled my direct debit for me and encouraged me to complain and showed me how to find the appropriate PPI complaints section of their site. I have since found out that my complaint should have been registered there and then, as a complaint can also be verbal according to FSA guidelines. However, he did go on to sell me a Critical Illness and Life Policy to replace the PPI!!!

Anyway, on these grounds alone, it is their word against mine about whether I was mis-sold or not and I am concerned that the complaint will not be upheld for this reason alone.

Since doing some research, my policy (now cancelled) was completely useless anyway as I don't have a mortgage and was living with my parents at the time of taking out the policy. I also have death in service benefits (3x salary), and 12 months illness/injury pay (6 full pay, 6 half pay) as part of my employment. So I would have been able to cover the loan repayments in the event of death or not being able to work. Is it more likely that my claim will be upheld on these grounds? It also seems to me that the Critical Illness & Life Cover policy that was sold to me recently, is useless based on my employment benefits. I'm a bit of a numpty when it comes to banking and if I've been screwed again, I can't believe how stupid I have been! Should I cancel this direct debit now?

I have also read about others who have had their claim upheld, based on them having a pre-existing medical condition. I was diagnosed with asthma as a child and do not remember being asked about this during the application. Although, it rarely causes me any issues nowadays (I dont do anything strenuous enough to cause an attack! haha) I have not been 'cleared' by a doctor. I suspect that this would give the policy providers enough grounds not to pay out in the event of death/sickness? Could these grounds make my claim more likely to be upheld?

I also have a Lloyds TSB credit card that I took out in Nov 2007. I applied online, and again have ended up with a PPI policy that is useless given my employment benefits and pre-existing illness. Is there any likelihood that the PPI box was pre-ticked also? I dont remember much about the application, but since my bank has mis-sold to me since then - I wouldn't put it past them to have done it before. Would it be worthwhile making a complaint about this at the same time?

For both policies, the PPI payments are clearly shown on my account and credit card statements. However, I have only recently found out about the PPI scandal and up until now I thought the policies were actually of some use - despite how they may have been 'sold'.

I look forward to hearing your advice.

Thanks

M

PS. I'm sure I've come to the right place given the amount of amazing advice and support others have received in other threads

[di30]

Re: Lloyds TSB - Mis-sold PPI on loan

Hi there,

I am hoping someone with more knowledge than myself can help with this.

I took out a £15k loan in Jan 2010 and was mis-sold PPI at the same time. The loan application was processed whilst in a meeting with someone at my bank. The bank rep was late to the meeting and told me he had another appointment to get to. The entire meeting was rushed and I was barely given any time to read the paperwork I was signing. I was told that PPI was mandatory and gave Lloyds peace of mind that the loan would be repaid if anything bad happened that meant I couldnt work etc... I was told that the loan was unlikely to be approved unless I took out this policy. As such, I was pressurised into taking out a policy I neither understood or needed.

I bought this up at a recent meeting in my branch and the advisor I was speaking to cancelled my direct debit for me and encouraged me to complain and showed me how to find the appropriate PPI complaints section of their site. I have since found out that my complaint should have been registered there and then, as a complaint can also be verbal according to FSA guidelines. However, he did go on to sell me a Critical Illness and Life Policy to replace the PPI!!!

Anyway, on these grounds alone, it is their word against mine about whether I was mis-sold or not and I am concerned that the complaint will not be upheld for this reason alone.

Since doing some research, my policy (now cancelled) was completely useless anyway as I don't have a mortgage and was living with my parents at the time of taking out the policy. I also have death in service benefits (3x salary), and 12 months illness/injury pay (6 full pay, 6 half pay) as part of my employment. So I would have been able to cover the loan repayments in the event of death or not being able to work. Is it more likely that my claim will be upheld on these grounds? It also seems to me that the Critical Illness & Life Cover policy that was sold to me recently, is useless based on my employment benefits. I'm a bit of a numpty when it comes to banking and if I've been screwed again, I can't believe how stupid I have been! Should I cancel this direct debit now?

I have also read about others who have had their claim upheld, based on them having a pre-existing medical condition. I was diagnosed with asthma as a child and do not remember being asked about this during the application. Although, it rarely causes me any issues nowadays (I dont do anything strenuous enough to cause an attack! haha) I have not been 'cleared' by a doctor. I suspect that this would give the policy providers enough grounds not to pay out in the event of death/sickness? Could these grounds make my claim more likely to be upheld?

I also have a Lloyds TSB credit card that I took out in Nov 2007. I applied online, and again have ended up with a PPI policy that is useless given my employment benefits and pre-existing illness. Is there any likelihood that the PPI box was pre-ticked also? I dont remember much about the application, but since my bank has mis-sold to me since then - I wouldn't put it past them to have done it before. Would it be worthwhile making a complaint about this at the same time?

For both policies, the PPI payments are clearly shown on my account and credit card statements. However, I have only recently found out about the PPI scandal and up until now I thought the policies were actually of some use - despite how they may have been 'sold'.

I look forward to hearing your advice.

Thanks

M

PS. I'm sure I've come to the right place given the amount of amazing advice and support others have received in other threads

Hi and welcome to LB

With the fact that you were sold the Critical and life policy, did you get any refund of the PPI you paid to date with Lloyds?
If not then get reclaiming on what you paid to date with the relevant interest.

With your med conditions, they should have made sure, and discussed the policy to you to make sure if was fully suitable to you, as it appears they did not and failed on the selling procedures, I would also raise this up on your complaint to reclaim.

Yes you can make a complaint verbally, but personally we suggest to do so in writing, this way you have proof if you keep copies in case you need to refer back to the complaint, or even end up complaining to the Financial ombudsman service (FOS), who you can freely use free of charge if you are not happy with the final outcome of the decision made by the bank.

And another thing as well, the other cover they sold you, I would double check on the eligibility side of it, and if it's not suitable to you, then you can make a separate complaint, although its not PPI, you can put it into writing to the bank head office that you were sold a product that is worthless to you, and you need to include all details of that the sales adviser pressurised you into taking out a cover that was not discussed with you.

So basically, all you said really, you do have good reason to make a complaint about both of them.

If you go directly on to Lloyds website, click on PPI complaints, the information with the address to send will be enclosed, also a complaints form issued by the FOS to complete to send to the bank/business to complain. Make sure you keep copies of everything you send.

And the life policy, put in a letter, give as much information as possible, and tell them as it's worthless to you, you want the policy cancelled immediately and expect to be refunded all you have paid to the policy, and any interest your entitled to.

With the credit card ppi, you can like the loan ppi complete the same complaint form as the loan ppi, always keep loan and credit card complaints separate.

Hope this helps, let us know how you get on, cheers and the best of luck.

[olekingcole]

Re: Lloyds TSB - Mis-sold PPI on loan

Thanks for that, Di.

In answer to the question at the start of your post: I have never had any PPI refunded from my bank.

I've drafted a letter for the first PPI policy on my loan. Do you mind taking a look at it to check that it's suitable? Could I PM it to you or something?

I’ve filled out the FOS form, but I couldn’t remember what I refinanced on the loan or whether I had ever missed any payments. So I couldn’t fill out sections C.3 or C.4. Does this matter, or can I just leave them blank? I also don’t have any reference to my PPI policy number; will the loan reference number be enough?

On what grounds should I complain about my credit card PPI? I know my employment benefits and medical condition still apply, but I don’t remember how it was sold to me (I applied online), or whether the PPI box was pre-ticked. Do you think it’s worth getting a SAR?

Regarding the life cover, I will write a separate complaints letter about that. Thanks for the advice.

Regards,

Matt

[di30]

Re: Lloyds TSB - Mis-sold PPI on loan

Thanks for that, Di.

In answer to the question at the start of your post: I have never had any PPI refunded from my bank.

I've drafted a letter for the first PPI policy on my loan. Do you mind taking a look at it to check that it's suitable? Could I PM it to you or something?

I’ve filled out the FOS form, but I couldn’t remember what I refinanced on the loan or whether I had ever missed any payments. So I couldn’t fill out sections C.3 or C.4. Does this matter, or can I just leave them blank? I also don’t have any reference to my PPI policy number; will the loan reference number be enough?

On what grounds should I complain about my credit card PPI? I know my employment benefits and medical condition still apply, but I don’t remember how it was sold to me (I applied online), or whether the PPI box was pre-ticked. Do you think it’s worth getting a SAR?

Regarding the life cover, I will write a separate complaints letter about that. Thanks for the advice.

Regards,

Matt

Your welcome Matt

And yes feel free to post your complaint when you are ready. Here or pm etc is fine. I am currently back and forth here, so will check it out at some point today, if you can post this today.

I would just complete the questions to the best of your knowledge.
The loan ref number is generally the same as the loan account number, so yes that is fine and the correct one to use.

It can vary with everyone's reasons for being mis sold, but as you applied online, can you recall, if the PPI was already pre-ticked?
If this is the case, then you may have assumed you had to take it out as part of the package, or maybe the application would not allow you to go any further with the application unless you agreed with not ticking the PPI, both of the above has been known.

With all mine I have SAR'd, it maybe a good idea, as information in relation of the sale of the Credit Card maybe enclosed with a bit of luck, but that choice if your's if you want to do this of course.

And Yes, keep loan PPI complaints separate to that of credit card ppi, I believe different rules apply when they investigate.

Hope this helps, and I shall be back at some point today. ;-)

Right ok, so as you've not yet had a refund, I note that you have started your reclaiming complaint. That's cool.

[olekingcole]

Re: Lloyds TSB - Mis-sold PPI on loan

Thanks Di, I've just PM'd you my letter.

I really cant remember the box being pre-ticked or not. Although it is not required given my employment benefits, and my existing medical conditions, I suspect since it's an online application they will deny based on my having 'opted' to take it anyway and that I should have read the 1000 pages of terms and conditions. Think I'll need a SAR just to try and clarify what the application involved. Do you where should I send my SAR request?

Matt

[di30]

Re: Lloyds TSB - Mis-sold PPI on loan

Cheers Matt, I shall check it out for you now.

With mine to Lloyds I sent my SAR to:

LLOYDS TSB BANK PLC
DSAR TEAM
CUSTOMER SERVICES
RECOVERY TEAM
CHARLTON PLACE C57
ANDOVER
HAMPSHIRE
SP10 1RE

[olekingcole]

Re: Lloyds TSB - Mis-sold PPI on loan

Thanks again Di, I'll post my letter regarding the loan ppi and put in a SAR to hopefully gain a bit more info about the credit card application.

Matt

[di30]

Re: Lloyds TSB - Mis-sold PPI on loan

Good luck x