Lloyds TAB loan and PPI-complete fiasco- advice needed PLs?

[Tigstheterror]

Hi folks, i will try to keep this as short as i can,lol, so bear with me.

Right in 2002 i took out a loan with my bank Lloyds, for approx £2,400. I was advised to have it over a 5 year repayment package although i wanted shorter. I was told to take out the PPI so i did, no more info was given on this though at the time! ( i was working) after a year i had an accident at work and i had to claim on the PPI due to the nature of the injury. Thus the PPI took over the re -payments of the loan,or so i thought. What actually happened was this: the PPI used to hit the account AFTER the due date of the direct debit, this meant that we ( joint account although only i signed for loan ) had to have the money ready for the direct debit every month and we were then reimbursed the amount some 4/5 days later. To cut a long story short, then husband,now divorced, kept defaulting on the bank account by not always making sure the money was there on time for the DD.So ran up huge bank charges ( £6,500) in 6 yrs, Now i questioned the way the PPI was being paid onto the account, surely if you take out this insurance they are supposed to cover the payments not re-imburse you after you pay? if you have a reduced income how can you make the payments in the first place? and i was beginning to wonder if i had made a mistake in having the insurance as it was causing more problems than not!

Anyhow this went on until 2006 and i noticed that after borrowing 2,400 my total was still over 2,000!! so i began to question the account and the way the PPI was being paid.

In April 2007 after a fourth letter of complaint to the loan team at Cardiff and numerous phone calls, i checked my account on-line and lo and behold they suddenly, without warning or notification, changed the way the PPI was being paid. It was actually hitting the account BEFORE the DD was due therefore inccuring no further charges of late payments etc, to my knowledge it was now being paid correctly.

However in September that year the loan came to it's supposed end and i was left with a bill of 1,989 still to pay!!!!!!!!!

First thought was holy smoke, then anger at ex, then anger at myself then anger at Lloyds.

To date i have written in 3 times to complain,to the correct departments, they have put 3 DCA's on me to try and recover the money, i have proof by way of my statements of how they cocked up with the PPI payments, yet no one wants to listen to me.

I have had a telephone call this morning from Robinson Way asking me for payment today!!! oh yeah we all have almost 2 grand lying about ( i am in receipt of INCP benefit) so i explained , calmly at first , that i have actually placed a letter of account in serious dispute to LLoyds, i have asked for a full investigation, they have chosen to ignore, i have had no letter from Lloyds telling me that they have passed it on to another DCA nor have i had a letter from Robinson Way informing me of this.

What on earth do i do now? I know that PPI is an insurance that is paid upon sickness, redundancy etc, so how can it be paid into an account AFTER a DD is due, meaning you have to find the money yourself first? and if they are trying to say it was always the money for the following month, my question has been this, why in April 07 did they do a complete turanaround and pay it in the account BEFORE the DD was due?

I am looking for advice as to what to do now as this is to me , a serious matter, they want money i don't have, i am trying to reclaim my £6,500 of charges because they took all the charges out when i was in receipt of sick pay then benefits as i was medically retired, and they are ignoring that too!!!!! They have frozen my account and savings account with them, which i discovered wheni could no longer log onto internet banking!!!

What is my best way forward? sorry it's so long but i want to get this sorted out, i hope someone can help or advise, anything would be gratefully received!! many many thanks

Tigs x

[Tigstheterror]

Anybody?

Tigs x

[Tigstheterror]

Initial heading is meant to say TSB doh!!! So any takers for this one? pretty please?

Tigs x