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PPI CLAIMS DEADLINE
29th Aug 2019

Lloyds Bank PPI Claims

lloyds-bank-ppi-claim
Did you have PPI on any Lloyds Bank product?

Some lenders, Lloyds Banking Group included, have been fined by regulators for the poor handling of claims - customers’ claims being unfairly rejected and/or having to wait for lengthy periods before receiving a decision.

The result is that Lloyds has had to pay out many millions of pounds to customers who were mis-sold policies and each year they are having to set aside funds to meet future claims.

This guide covers:

  • What Is Payment Protection Insurance?
  • How Was PPI Mis-Sold By Lloyds?
  • Could I Have Been Mis-Sold PPI By Lloyds?
  • What Provisions Has Lloyds Banking Group Made For Mis-Sold PPI?
  • How Has The PPI Scandal Hit Lloyds Banking Group?
  • What Brands Do Lloyds Banking Group Own?
  • How Long Do I Have To Make A PPI Claim With Lloyds?
  • What Financial Products Did Lloyds Sell PPI With?
  • How Can I Make A Claim Against Lloyds Banking Group?
  • Have Lloyds Rejected Your PPI Claim?
  • The Financial Services Ombudsman – What Do They Do?
  • Are There Benefits For Using A Claims Management Company?
  • How Do I Start My Lloyds PPI Claim?
  • Plevin High Commission Claims With Lloyds
  • Help to Calculate Your Lloyds PPI Refund

What is Payment Protection Insurance?

PPI isn’t as difficult to understand as some would have you believe. It was an optional add-on insurance policy to cover the repayments on financial products such as mortgages, loans and credit cards.

The purpose was to cover policy holders who could not work and therefore meet their monthly repayments for any of the above products due to sickness, long term injury or redundancy.

How Was PPI Mis-sold by Lloyds?

There were several underhand sales tactics used to mis-sell PPI policies once lenders such as Lloyds discovered just how profitable they were. Sales advisers were encouraged to sell PPI policies and in return they would receive a commission on the sale.

  • Unaware – there are many cases of customers not knowing that the PPI had been added to their product. They were not only repaying their loan, but they were also paying for an insurance policy they did not know about.
  • No option – it was a widespread practice for sales advisers not to tell customers that PPI was optional, that they could either opt out of having it or they could buy cover elsewhere. Some were told that the loan would not be approved if they didn’t take out the PPI.
  • Couldn’t ever claim – sales advisers had sold policies to people who would not have been covered by it, so they wouldn’t be able to claim on the policy if their employment status changed.
  • Underhanded – some sales advisers used methods to sell policies that were ethically and morally wrong. For example, telling customers of what could go wrong if they didn’t take out the policy.
  • Pre-existing conditions – most PPI policies will not cover those with pre-existing medical conditions and the sales staff didn’t find out if the customer had any, or if they had cover elsewhere.
  • Commission – the sales adviser didn’t tell you that part of the cost of the premium went to the lender, bank or broker as commission.
  • Pressure sales – the sales adviser put pressure on you, the customer, to take out PPI.

Could I have been mis-sold PPI by Lloyds?

Many thousands of policies have been mis-sold. You may be able to make a claim for the recovery of the premiums you paid plus the interest charged on the premiums. In addition, there will be a compensatory interest rate of 8% per year.

Lloyds PPI Calculator

Use our PPI calculator to estimate the amount redress you can expect including any interest due back for your PPI on a Lloyds loan, credit card or mortgage.

PPI Calculator Assumptions

What provisions has Lloyds Banking Group made for mis-sold PPI?

There has never been a bigger or more expensive scandal in the history of financial services in the UK than mis-sold PPI.

This scandal has resulted in UK banks having to put aside billions of pounds to compensate customers who were mis-sold payment protection insurance policies. The total cost to the banks so far has been over £44bn. Banks and lenders made extra provisions after the FCA announced the deadline for all PPI claims to be made by August 2019.

How has the PPI scandal hit Lloyds Banking Group?

Lloyds Banking Group has set aside a total of £18.8bn for PPI compensation so far.
 
Lloyds £19.2bn
 
Barclays £9.3bn
 
Royal Bank of Scotland (RBS) £5.1bn
 
HSBC £4.05bn
 
Clydesdale Yorkshire Bank £2.05bn
 
Bank of America £1.5bn
 
Santander £1.5bn
 

source:newcityagenda.co.uk

FCA Fines imposed on Lloyds for Mis-sold PPI 

As of July 2017, Lloyds Banking Group has set aside a total of £18.1bn to meet PPI compensation claims. So far, the group has been fined:
  • £4.5 million in Feb 2013 for delaying compensation payments to its customers
  • £117 million in June 2015 for the way it handled complaints about payment protection insurance

What brands do Lloyds Banking Group own?

Originating in Birmingham in the 1700s, the bank expanded over time and went from strength to strength by acquiring smaller banks and in the early 1900s took their operations overseas.

Lloyds Banking Group are one of the biggest banks and providers of finance in the UK and own the following brands:

  • Lloyds Bank
  • Bank of Scotland
  • Halifax
  • Scottish Widows
  • MBNA
  • Black Horse
  • Lex Autolease
  • LDC
  • AMC
  • Colleys
  • Birmingham Midshires

The Most Common Products Lloyds Sold PPI With

If you have ever taken out any of the following financial products, there is a risk that you were sold PPI and it may have been mis-sold.

Lloyds Credit Card PPI

Lloyds credit card PPI

Lloyds sold PPI on credit cards to millions of consumers over the last 30 years. If you had a Lloyds credit card find out if you can reclaim with a FREE PPI Check. You could be owed £1000's.

Lloyds Loan PPI

Lloyds bank loan PPI

Lloyds sold PPI on Loans in the mid 1980's to millions of consumers. If you had a Lloyds loan start a FREE PPI check and find out if you can reclaim. You could be owed £1000's.

Lloyds Mortgage PPI

lloyds bank mortgage ppi

Lloyds sold PPI on mortgages  to millions of consumers mid 1980's. If you had a Lloyds mortgage you could be owed £1000's. Find out if you were mis-sold PPI on your Lloyds mortgage with a FREE PPI check.

Other products Lloyds sold PPI with:

The easiest thing to do is ask the bank or lender concerned if they sold you PPI or use PPIClaims.com to get a free PPI check done.

How long do I have to make a PPI claim with Lloyds?

The Financial Conduct Authority (FAC) announced a deadline for people to claim compensation for mis-sold PPI. All claims must be made by 29 August 2019.

There have been millions of people who have already made successful claims against banks and lenders however, there are many more still to claim. If claims are not made before the deadline, it will be too late.

What is 'Plevin' rule and how did it come about?

The name Plevin has been mentioned in the media yet many people do not know what if refers to or understand it’s relevance to PPI.

Plevin has had an enormous impact on how PPI complaints are handled and their outcomes.

It all started with a court case involving a lady called Susan Plevin, a retired college lecturer, who took a loan company to court when she discovered PPI had been added to her loan.

The case initially centred around the fact the PPI didn’t meet her needs. However, it was only after she made her complaint that she discovered the high level of commission that was being paid to the brokers from her premium - 71.8%.

Plevin went back to court to argue that had she know how much commission was involved she would never had taken out the agreement and that this led to an unfair relationship contractually.

In June 2014 the Supreme Court ruled that Plevin had been mis-sold PPI and that the relationship was unfair under the Consumer Credit Act 1974.

Lloyds PPI commission Claims

A new ruling, called ‘Plevin’, came into effect on 29 August 2017 and deals with high levels of PPI commission charged.

In this instance commission is a reward paid to a bank or other provider by an insurer for the sale of PPI. If you had PPI, the money for this commission would come out of the payments you made for the policy.

This means you can make a fresh claim under new Plevin ruling even if your initial claim was rejected.

Plevin High Commission Claims With Lloyds

Lloyds may have earned a high level of commission from your PPI, which you knew nothing about, so you may be eligible to make a claim under the Plevin rule.

However, this is not possible if you have already had your PPI claim refunded. This is because Plevin ruling does not apply to settled PPI claims.

So, If your PPI claim was rejected you are able to complain about the commission if:

  • You took out the finance the PPI was sold with on or after April 2007; or
  • The finance with the PPI was sold before 6 April 2007 and was still in place on or after 6 April 2008.

However, another recent case, Doran v Paragon Personal Finance June 2018, decided by a District Judge in a County Court. He awarded the claimants all their high commission payments back plus interest.

The case of Doran does not set a precedent, like Plevin case does, as it was decided in a lower court and may yet be appealed by Paragon Personal Finance.

Customers who have already been successful in their claims for mis-selling cannot claim under the Plevin rules. This will still apply after the recent Doran case. Lenders will only consider claims for undisclosed commission if the customer has been rejected for a mis-sale.

If you feel that you have paid high commission for a PPI policy, you may be entitled to compensation, please complete our online PPI High Commission Check Form.

How can I make a claim against Lloyds Banking Group?

If you think you have a claim against Lloyds Banking Group for the mis-selling, you will need to provide as much information about the policy you had. The following information will help Lloyds Banking Group to process your claim:

  • PPI account policy numbers
  • The dates of when you took the policy out and how long you had it
  • How the policy was sold to you
  • Your employment status when the policy was sold
  • If you had any savings or other insurances in place at the time of taking out the policy
  • The reason for taking out the finance and how much you paid off

Have Lloyds rejected your PPI claim?

After sending all your information and evidence you receive a letter from Lloyds to say that your claim has been rejected. What do you do now?

If you strongly feel that you were mis-sold and the information you have substantiates the claim, you can ask the Financial Ombudsman Service to take the matter up.

Even if you don’t have sufficient paperwork and depending on how long ago the policy was taken out you may still be able to get your refund.

The Financial Services Ombudsman – what do they do?

If you feel that your claim has been unfairly rejected by the bank, that doesn’t have to be the end of the matter. You can escalate the matter by getting in touch with the Financial Ombudsman Service (FOS), however this can only happen eight weeks after making your first complaint to the bank and receiving the rejection letter.

The FOS is an independent body set up by the government that is tasked with settling disputes between the PPI policyholder and financial organisation concerned. Their decision if final and binding on the on the organisation.

To determine if you were mis-sold the policy or not, the FOS will ask you to fill out an online questionnaire.

The banks’ decision will be received by an adjudicator, who will either uphold it, or will order the lender to pay you compensation.

Should the adjudicator agree with the bank that you were not mis-sold PPI, the decision can be appealed, and an Ombudsman will review your case. The ombudsman’s decision is final.

However, it is worth noting that due to the high volume of cases the Ombudsman is dealing with, it may take some time before your complaint is resolved.

Are there benefits for using a Claims Management Company?

There are benefits in using a claims management (CMC) company such as ours to make your PPI claim as the entire process is taken care by our case workers through our main brand Money Management Team Ltd.

We offer a free PPI check service to establish if you were sold PPI any financial products. The purpose of the check is to find out how many of your accounts have/had PPI. By going through this process other cases may come to light that you may have forgotten about.

Frequently Asked Questions Lloyds PPI Claims

Read our frequently asked PPI Claims related questions and answers. In the majority of cases the first step to making a PPI claim is to get a PPI check done with the lender. We offer this as free standalone no obligation service, find out How to start your FREE PPI Check** with us today.


What is PPI?

PPI stands for Payment Protection Insurance. It is a financial product designed to cover repayments on loans, mortgages and credit cards which you may not be able to meet if you find yourself out of work due to illness, redundancy or other reason.

Having PPI cover would mean that if you fell ill, became unemployed, or found yourself in a situation which meant you were not earning money, your repayments would be covered.
PPI also went by many other names, such as: ASU insurance (Accident, Sickness and Unemployment), Life & ASU insurance (Life & Accident, Sickness and Unemployment cover), PLP (Personal Loan Protection), CCRP (Credit Card Repayment Protection) and MPPI (Mortgage Payment Protection Insurance).
These insurance policies were often sold alongside loans, mortgages and credit cards

How was PPI Missold ?

Many sales staff at banks and other financial companies were under heavy pressure to meet certain targets each day in the 1990s. Encouraged to sell PPI wherever possible – due to its strong profitability – many of them sold PPI incorrectly, going against the industry regulations in order to reach their targets.

PPI was mis-sold in many different ways, with some of the most common being:

  1. The bank telling you that it was compulsory.
    Customers were sometimes told by the banks and lenders that PPI cover was necessary in order to receive the loan they were applying for. Sellers would either not mention it was an optional extra, or imply that those in charge of deciding whether you would receive your loan would be more likely to accept your application if you took out PPI cover.

  2. You received it without asking for it, or without knowing you were having it. You might not have discussed PPI properly with the seller, yet they subtly added it to the loan documents without you asking to have it.

  3. It was sold to you for an expensive price
    If PPI was sold to you at a high price, then you may have barely gained any money if you ever ended up claiming on it, even if you were eligible for the maximum payout. Because the policy would not actually benefit you properly, it can count as being mis-sold.

  4. It was unsuitable for you to have it
    Some people had no need for PPI cover. They were either fully covered anyway by another policy, or their personal situation made it impossible for them to ever claim on it, such as having a pre-existing medical condition, for example. You may have reached retirement age during the policy’s timeframe, for example, making the PPI mis-sold.

How do I know if I’ve had PPI

Your statements or other relevant documents should have PPI listed on them, potentially under other names such as: ASU insurance (Accident, Sickness and Unemployment), Life & ASU insurance (Life & Accident, Sickness and Unemployment cover), PLP (Personal Loan Protection), CCRP (Credit Card Repayment Protection) and MPPI (Mortgage Payment Protection Insurance).

How do I check and spot PPI payments?

For PPI on loans or mortgages, you will probably be able to find signs of PPI payments on your original agreement. For PPI on credit cards, it should show up on your statements. Generally it would have been charged monthly.

Remember to check for the different names PPI was sometimes called on your documents, such as: ASU insurance (Accident, Sickness and Unemployment), Life & ASU insurance (Life & Accident, Sickness and Unemployment cover), PLP (Personal Loan Protection), CCRP (Credit Card Repayment Protection) and MPPI (Mortgage Payment Protection Insurance).

Why should I make a claim?

The Financial Conduct Authority (FCA) – formerly the Financial Services Authority – discovered that PPI had been mis-sold by many banks and lenders across the UK on a major scale.

There were 20 million PPI policies in the UK by mid-2008, with an estimated seven million added to credit agreements annually. Based on this, PPI may have been mis-sold to more than 70 per cent of the UK, with potentially more than 40 per cent of policyholders not even knowing it was attached to their loan, mortgage or credit card.

Considering this, it is reasonably possible that if you took out credit in some form during the last few decades then you may well have been mis-sold PPI on it, or been charged an unfairly high amount of commission on it, and therefore you may be entitled to compensation.

Additionally, many cases which have been rejected by lenders later go on to be overturned by the Financial Ombudsman Service (FOS).

Can I make a PPI claim myself?

While you have every right to deal with your claim yourself, some people may feel like they don’t have the spare time or patience to do this. PPI claims involve completing questionnaires, chasing up banks, and can take various different routes.

Using a claims management company means they can use their knowledge and experience to guide you through the claims process.

How far back can your PPI claim be dated?

PPI is known to have been mis-sold from as far back as 1988 up until 2014 in some cases.

Could you have been mis-sold PPI through a Business or Commercial loan?

Business Loan Repayment Insurance is a type of insurance policy sold alongside commercial loans, including Fixed Rate Loans, Variable Rate Loans and Treasury Loans.

Let us Check if you have Mis-sold PPI to Reclaim

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How much could I get back?

If your PPI was mis-sold, the amount of compensation paid out is generally your PPI premiums plus gross interest at 8 percent. If you paid more interest on your loan, mortgage, credit card or other product as a result of having PPI, then you may receive more compensation.

What happens if I’ve missed repayments?

Should you have missed any payments on the loan, credit card or mortgage which you are claiming for, any compensation you receive would be used first to clear any arrears, before the any payment is made to you.

The Financial Ombudsman Service (FOS) offers a free and impartial advice service for consumers, and we recommend that you speak to them or to a specialist debt advisor about your financial situation.

Can I still make a claim even if my PPI policy has expired?

Yes. No matter when the policy expired, provided the PPI was mis-sold, you are entitled to make a claim.

What if I don’t have any paperwork?

Financial companies must keep records of all their customer’s transactions and dealings for the past 6 or more years, so they may still have your records for you. If you paid off your loan more than 6 years ago, there may not be any available records. However, there have been cases in which claims have been made against cases of mis-selling over 20 years ago, often without paperwork.

How long do PPI claims take to process?

Our average timeframe is between 8-16 weeks from the date of the lender’s acknowledgement to a decision being made.

Should your claim be rejected and you then appeal to the Ombudsman, you can expect to wait several months longer. However, many claims that are rejected initially go on to be overturned by the Ombudsman so it is generally worth the wait.

The more details you can recall about your agreement, the more likely it will be that your lender can locate and verify you against their systems. This can help avoid requests for further information which can delay a decision being made.

I am currently in a Debt Management Plan Can I still claim?

YES

Being in a debt management plan (DMP) does not have any effect on your right to make a claim. However, your own situation may differ, depending on your agreement with the debt management company you should be aware of the following:

  1. You may be required to let your debt management company know that you plan to claim, as well as informing them about any subsequent compensation.
  2. If the loan, credit card, mortgage, overdraft or other account you are complaining about was included in the DMP, your lender may automatically deduct some or all of the compensation and pay it to your debt management company.
  3. If it was not included, then it is possible that you might still be required to make a payment to the debt management company.
  4. It is possible that you may not end up with any money left over after paying back your DMP, however you will still have benefited from making the claim because your outstanding debt will have been reduced.

I have an IVA or have been declared bankrupt, can I still claim?

If you are going through or have recently been through an IVA or bankruptcy, you must speak to your insolvency practitioner or debt adviser before making a claim.

What if the finance company no longer exists?

If your PPI policy was taken out after 14th January 2005 your claim can be taken to the Financial Services Compensation Scheme (FSCS). The FSCS is the UK’s compensation fund of last resort. They may pay compensation if a firm is unable, or likely to be unable, to pay claims against it. This usually takes place when the original lender either no longer exists or is bankrupt.

How will this affect my relationship with the lender?

A claim should not affect your relationship with the lender, because it is the lender’s duty as part of the FCAs “Treating Customers Fairly” (TCF) initiative to ensure that all customers are treated fairly.

The FCA are very serious about this being carried out, saying: “TCF remains a vital part of our supervisory approach and as such, it has been fully integrated into our core supervisory work. This will help to safeguard the legacy of the significant effort made by the FCA and by firms on their TCF programmes, in terms of improved outcomes for consumers. Where we find failings, we will use our full range of regulatory powers to take action.”

If the checks reveal any PPI present on any of your accounts, you will be advised of your options on how to recover any PPI charges. Should you decide to proceed with PPIClaims.com we will require you to sign and return the relevant paperwork as soon as possible to begin your claims.

If your claim is rejected by Lloyds Banking Group, we will refer your claim to the FOS at no extra cost. The no-win, no-fee promise still stands.

How Do I Start my Lloyds PPI Claim?

We’d like to discuss the details of your case with you, so your complaint can be lodged with Lloyds on your behalf as quickly as possible.

  • Start your Free PPI check process by using our online form. Completing the required information will help to establish if you have held a policy with Lloyds; or
  • Call our dedicated number for PPI claims on 0333 443 9158; or
  • Complete our online claim form to start your claim.

Help to Calculate Your Lloyds PPI Refund

Millions are still owed money from mis-sold PPI and are entitled to make a claim. One of the most popular questions we get asked is, “How much could I be owed?” Without having the exact details of your borrowings, the payment dates, and the interest rate, it’s difficult to put an accurate figure on it. If you believe that you have been mis-sold PPI your complaint must be submitted to the relevant bank or lender before the PPI deadline.

Please use our PPI calculator to get an indication of what you may be entitled to include statutory interest if you were sold PPI on a loan, credit card or mortgage.

FREE PPI Calculator - How much Can I reclaim from Lloyds?

Organisations Who Can Provide Information & Help On Lloyds PPI Complaints

There are some regulatory bodies who can offer information and assistance regarding PPI: The Financial Conduct Authority, the Financial Ombudsman Service and the Financial Services Compensation Scheme.

The Financial Conduct Authority
12 Endeavour Square
London
E20 1JN

Tel: 0800 101 8800

The FCA are the finance industry regulator, whose role it is to protect consumers. They will provide general information about PPI but cannot offer advice on an individual basis.

The Financial Ombudsman Service
Exchange Tower
London
E14 9SR

Tel: 0800 023 4567

The FOS provide a free, independent dispute settlement service between financial businesses and their customers. They can deal with a wide range of finance based complaints including PPI.

Financial Services Compensation Scheme
PO Box 300
Mitcheldean
GL17 1DY

Tel: 0800 678 1100

The Financial Services Compensation Scheme(FSCS) may be able to offer compensation if a PPI provider you purchased a policy with is no longer trading, providing they were an authorised financial business.

Other organisations who can also help are:

Citizens Advice
Gazette Buildings
168 Corporation St
Birmingham
B4 6TF

Tel: 0344 477 1010

Citizens Advice have offices across the UK. They provide free, confidential and independent advice to help people overcome their problems.

The Money Advice Service
Holborn Centre
120 Holborn
London
EC1N 2TD

Tel: 0800 138 7777

The Money Advice Service was set up by the government to help people manage their money by offering free and impartial advice.

Other Banks & Lenders Facing PPI Claims