Lloyds Credit Card PPI rejection - advice please

[January2015]

Hi
I am helping a relative with a PPI claim. He has only ever had one bank account and one credit card - both with Lloyds Bank. He has had a credit card since 1994. Lloyds have rejected his PPI claim as the sale was made on a non-contact basis and they consider it more likely than not the key facts were made clear to him in good time before the sale of the ppi was concluded.

Any help with a response to dispute this would be gratefully received. A few points below:

He wrote to Lloyds in 2016 and was advised he had never had PPI. He wrongly assumed that Lloyds was just his bank. He never realised Lloyds Credit Card and Lloyds Bank are two different addresses. He doesn't write to banks they just take money directly from his account for his card payments.

He is an undiagnosed autistic. That doesn't help with his claim, but he doesn't go to doctors and he never has a day off work. He takes everything at face value. If the forms sent for him to get a credit card included PPI info he honestly would have assumed he had to have it.

He gets six months full pay if he off sick.

Does he have any chance of disputing their rejection of his claim?

Thanks

[cymruambyth]

Hi, I will try and help on Thursday.

[January2015]

Thank you so much

[Joanna Connolly Solicitors]

Perhaps the next step should be a complaint escalation to the Financial Ombudsman Service?

This link explains the process > http://www.financial-ombudsman.org.uk/ppi/index.html

Di

[cymruambyth]

Hi, what were his grounds for disputing the PPI? If it was purely that he didn’t realise and that it wasn’t explained to him can you find out the dates that he contacted LLoyds Credit Card and not LLoyds Bank.

[January2015]

He honestly thought he had to have PPI to have a credit card. Even now he's worried if he cancels the PPI they will cancel his credit card. He literally takes everything at face value. He was sent a promotion and went into the branch to sign up for the card. To be honest, although I am trying to help him I think that now they have said he is not entitled to a refund of PPI he won't let me try and fight anymore anyway because he sees everything in black and white and because the bank have said no there cannot be any further argument in his mind.

He never needed the PPI - he had excellent sickness cover in his employment, has always been employed, and never had a day off sick anyway. When I asked him if he had been given a choice of whether to take PPI or not, would he have taken it.... his answer was a definite no because he knows he will never need it. Hey ho - as I said I don't think he will let me take this further anyway now.

[cymruambyth]

When he complained about being miss sold the policy what exactly did he write as his reason? I’m only pushing for details because the details are the way to argue.

[January2015]

His complaint was that the policy was not optional when he took out the credit card. Lloyds have said it was taken out by post but he is adamant he was sent promotional information and he went into his branch to organise the card. This was almost 24 years ago now. I don't doubt him though, as I said he has autism and he remembers details very clearly. Lloyds have determined he had the key facts sent to him and it is "more likely than not" the key facts were made clear to him in good time before the sale of the ppi was concluded.

[January2015]

He submitted the complaint via resolver website and I've just checked and where it asked "Did the financial institution give you any advice or recommend that you take out this insurance?" He has responded "Can't remember" - which I guess doesn't help his case.

[January2015]

Hi

We've successfully argued the PPI claim decision and they have now agreed it was missold - great result !

However, I don't think they have calculated the refund correctly / fairly. The credit card was taken out in the early 1990s and used regularly. They seem to have used a balance from this week - which was literally a few pounds as we are in the process of closing the account. In total they are refunding just under £700. Does this sound right for PPI paid for well over 20 years?

All I can think to do now is send a data request and get copies of all statements to argue the amount. Anyone have any other suggestions on how I should progress this?

[cymruambyth]

Well done on getting a successful result. I think getting the statements may be your best way forward. Did they break down the amount to show how much was interest.

[January2015]

Hi

Apologies for delay in responding. They did break it down as follows:

"In addition to any difference in account balance, I've also included in our refund any difference in the actual payments you made towards your credit card when it had PPI and the amout we have assumed you would hae made had you not take PPI" The figure for this line is just in excess of £500

"Plus compensatory interest". The figure for this line is about £400. So although that comes to almost £900 they have refunded £700 because apparantly they have already refunded £200 to the card. Interest calculated at 8%

However, there is an associated fact sheet that came with the letter that explains how they calculated the refund.and that states:

"If your credit card is still active, we will use the most recent statement available at the time of calculation."

He had the card from the early 1990s - never had another account - and just this last month decided to do a balance transfer because he was so fed up with the argument over reclaiming PPI. So the balance they used was less than £2. A couple of weeks earlier it would have been a few thousand, and it's been regularly used ove the period since it was opened. Anyway - SAR request submitted and have also written back complaining they used unfair figure and made assumptions. Will see what comes back and let you know.

Thanks for the advice.