Lloyds Loan PPI (LPI) will a claim stop a reclaim?

[hisholinessthepope]

History - I have recently started helping a family member who had a loan from Lloyds in 2001. This orignal loan had front loaded PPI (Lloyds call it LPI). The loan has subsequently been "cleared" and moved to a new loan on 6 seperate occassions roughly every 8 months or so. Everytime more PPI has been front loaded onto the new loan with the old balance and any new advance. The current loan has a balance of £14K but all the PPI from the old loans is more than this amount. All very shocking.

 

Now this family member is over 65 and had a heart attack earlier this year and is now not working, unlikely to ever work again and struggling to make the £500 per month repayments. Oh and previously has been self- employed!

 

I am still looking and learning about PPI and will be assisting in a claim in due course, once I am up to speed.

 

In the meantime, the family member has rung (this week) the PPI people and advised about the heart attack and Lloyds are sending out paperwork to process a claim against the PPI cover for the repayments.

 

Question - would making a succesful claim against the policy be wise? Would it hinder a later claim? The repayment of the PPI premiums would easily wipe out the loan balance in due course. But claiming now on the policy gets over the short term problem of the repayments.

[hisholinessthepope]

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[hisholinessthepope]

Bump

[alanalana]

History - I have recently started helping a family member who had a loan from Lloyds in 2001. This orignal loan had front loaded PPI (Lloyds call it LPI). The loan has subsequently been "cleared" and moved to a new loan on 6 seperate occassions roughly every 8 months or so. Everytime more PPI has been front loaded onto the new loan with the old balance and any new advance. The current loan has a balance of £14K but all the PPI from the old loans is more than this amount. All very shocking. (If you do not have all of the documentation from these loans you should ask for it by sending a Subject Access Request - Links and advice below)

 

Now this family member is over 65 (was this family member over 65 at the time the last loan started? if so this is a reason to claim mis-selling) and had a heart attack earlier this year and is now not working, (again dates important here if the last loan was after the heart attack then that would put them into the pre existing medical conditions category - yet another reason to claim mis-selling) unlikely to ever work again and struggling to make the £500 per month repayments. Oh and previously has been self- employed! (again timings are important if the claimant was self employed when the loans were approved and the terms and conditions list self employment as an exclusion to make a claim then again you could use this to argue the case for mis-selling)

 

I am still looking and learning about PPI and will be assisting in a claim in due course, once I am up to speed. (please read the stickies to learn about PPI any questions just post in your thread)

 

In the meantime, the family member has rung (this week) the PPI people and advised about the heart attack and Lloyds are sending out paperwork to process a claim against the PPI cover for the repayments.

 

Question - would making a succesful claim against the policy be wise? Would it hinder a later claim? (After a heart attack it is IMO unlikely you would be able to make a claim, so I would proceed to claim all of the PPI premiums that have been paid on each loan and also claim the 8% statutory interest from the date each individual premium was paid up until a settlement is agreed) The repayment of the PPI premiums would easily wipe out the loan balance in due course. But claiming now on the policy gets over the short term problem of the repayments. If you now make a claim on the policy it would most probably invalidate your chances of recovering the PPI you want to reclaim. This would mean in the short term the payments may be met (I would bet not for long though) but the loan would still be there requiring repayment. If as you state the PPI premiums if repayed would cover the amount outstanding on the loan then that again IMO would be the way to go.

 

There is a lot to deal with here.

 

Please see my comments on your post above

 

Please read up on all of the stickies at the top of the forum.

 

PPI - Some Notes for Claimants..

 

BANKS are giving incorrect advice on PPI

 

Full SAR for ppi

 

Data Protection Act 1998 - Subject Access Request

You can be specific with what data you request although the Subject Access Request is really asking for everything. The Statutory fee is £10.00 Postal Order is fine but keep the details of the number for future reference. The post office will be able to confirm when it was encashed (just call 01246 542091 they will even send written confirmation if you request it) Send all correspondence by at least recorded to be signed for so you can track delivery through Royal Mail

 

You should request the following documents:

 

A true copy of your Consumer Credit Agreement with the Terms and Conditions that were applicable at the time you took the loan/card/mortgage.

 

A ‘demands and needs’ questionnaire.

 

Copies of all statements applicable to the loan/card/mortgage.

 

Copies of all correspondence that apply to you as a data subject ie letters, emails, faxes etc.

 

Copies of all recorded telephone calls or transcripts of the recordings.

 

Copies of any notes made by bank/loan company staff in their dealings with you as a data subject.

 

Do not be fobbed off by them citing issues such as relevant filing systems.

 

If they have any records/data on you as a data subject and it is held under your name, address, post code, account number/s or any other system where the data is identifiable to you then it is a relevant filing system. Even if it is a specific serial number on microfiche records and the serial number is applicable to you.

 

 

Mis-sold PPI? Want your money back? use these links to help

 

The last link is full of even more links there is a lot of reading to do but this could help you with your claim for mis-sold PPI.

 

If a claim is made on the policy and is successful it would no doubt help out short term but with an outstanding balance of £14k you should seriously consider which way you wish to proceed with this.

 

aa

[hisholinessthepope]

Thank you the post alanalana, must have taken a while and is appreciated.

 

We applied for a SAR earlier in the year so the information I have been posting has arisen from starting to wade through the three feet high pile of paper.

 

Some of the loans were definitely taken out while self employed so I have asked the individual to note down employment history against each loan.

 

The heart attack was not a previous medical condition and completely out of the blue.

 

My research started with reading the stickies in the PPI forum but as with all research lead me to many threads and posts which I have printed off and read for an hour each day.

 

As for the claim against the PPI, it is called LPI by Lloyds, the help line suggested it should be against the critical illness section and have sent out paperwork. This will take time to complete as it is lengthy and needs GP input. Reading the little booklet that comes with it, it appears it will run as long as he remains unable to work and in theory would clear the loan! But I need to sit and read it properly. I will not let them make a claim in a hurry whle we consider all options.

 

As for the old loans and the total PPI when you add them all up is over £20K! The current loan has a balance of £14K. So if they had had no PPI - well do the maths it is simple.

[alanalana]

My message is to keep at them stay on the game. I have so far recovered £18.355.70 with a claim with the FOS two claims awaiting a response due tomorrow and successes on earlier bank claims with three bank charges claims still to pursue.

 

It is worth the effort.

 

Good luck.

 

aa