Lloyds TSB urged to re-consider PPI pull-out
Leading consumer champion Brunel Franklin is urging the UK’s second largest banking group, Lloyds TSB, to re-consider its decision to pull out of the PPI (Payment Protection Insurance) market.
Lloyds announce withdrawal of PPI
Lloyds has announced the withdrawal of its PPI products across all brands and channels. The policies have stopped being sold to new customers alongside Lloyds TSB, Halifax, Bank of Scotland, Cheltenham & Gloucester and Black Horse personal loans, credit cards and mortgages.
A spokesperson for Lloyds said: ‘This move reflects the uncertainty around the regulation of PPI sales and processes. The Group believes further changes in regulation will make it uneconomic to continue to offer these products in their current form’.
(Source: http://www.citywire.co.uk)
Sally Bowyer, Managing Director of Brunel Franklin, said: “We are disappointed for consumers to see LTSB totally pulling out of the market. Whilst we have been vocal critics of PPI mis-selling tactics in the past, PPI has, in theory, never been a bad product and we believe consumers should be offered some alternative products and guidance at point of sale, where appropriate.
“The idea of getting cover at a reasonable price over a reasonable term and having the terms and conditions properly explained to you is not rocket science, and stand alone insurance providers seem to do it well – without too much fuss. So why one of our ‘leading’ high street banks cannot do it, beggars belief. The vendors only need to avoid the mis-selling of PPI, not selling PPI that meets a consumer need.”
Brunel Franklin average PPI refund value of £2,000
Brunel Franklin continues to see a surge in PPI refund applications, with the average refund amount over £2,000 and refunds of several thousands of pounds not uncommon. Brunel Franklin has helped a number of clients secure PPI refunds of over £20,000.
Anyone worried that they may have been mis-sold PPI should call Brunel Franklin, free of charge, 0800 051 54 51 or visit the website at www.brunelfranklin.com
Case study
Phil White, a plumber from Tewkesbury, in Gloucestershire, first complained about his PPI policy to Brunel Franklin in February this year and just a few months later, he is celebrating an unexpected refund cheque of £8,300.
Like millions of other people, Phil wanted to take out a consolidation loan to better manage his finances. Rather than do this over the phone or online, Philip felt more confident in doing this face to face back in 2003 at his local branch of LTSB. The loan was for £25,000 and Phil never gave the PPI aspect any real thought, until a friend made him aware of the mis-sold PPI issue in 2009.
“The PPI appeared to be automatically included in my agreement, explained Phil. “I had not been advised of any details on cost, or any terms and conditions about PPI being optional, I just thought it was something you had to have, particularly with me being self employed. It seems silly now but I really didn’t know you could shop around and I only heard about the PPI issue by chance last year. I thought it would be far too late after seven years to do anything about it, but Brunel Franklin were offering a no-win-no-fee service, so I didn’t think it could hurt to let them see what they could do. I wasn’t really expecting anything back, so I am chuffed to bits with the refund!”
Sally Bowyer, Managing Director of Brunel Franklin, said: “People like Phil shouldn’t feel they have done anything wrong in these situations and it is never too late to check your policy. It is easy for people who took loans out for relatively small amounts to think it’s not worth the hassle checking out the PPI element. It can seem like a lot of hard work for nothing and this attitude is what the big vendors are counting on. But as Phil has discovered, with Brunel Franklin on your side, you can get a pleasant surprise and quicker than you might expect.”
While some cases can be drawn out affairs, Phil’s case was sorted in just over two months, with the vendor immediately deciding to reimburse the client as a result of Brunel Franklin’s professional representations.
The consolidation loan of the type taken out by Phil and many others has had a lot of press in recent years, as it can make sound financial sense to combine all your debts into one easy-to-manage loan. Yet Phil’s case also highlights just how careful you need to be when taking out any loan and other credit agreements, whether it be over the phone or face to face.”
“It is always the responsibility of the vendor to make sure that the policy is the best one to fit your circumstances at the time of the sale,” added Sally. “If you didn’t realise what insurances you were being sold at the time, and you subsequently discover you have been paying for insurances that weren’t fully explained, there is a chance you may have been mis-sold a policy.”
