Customer unaware they had paid PPI receives £20,000
Posted on: November 1st, 2018 | Author: crystaladmin
Recently, we successfully pursued two claims for Lynne, who was unaware that she had been mis-sold a Payment Protection Insurance policy and a Packaged Bank Account until we contacted her.
As a result, Lynne received more than £20,000 in compensation from Lloyds Bank!
The saga of the PBA …
Lynne visited her local branch of Lloyds to open a business account. However, the salesperson at the bank told her that she would also have to open a joint Lloyds Platinum Account, a PBA that includes several types of insurance and attracts a monthly fee, in order to have the business account she wanted.
But when Lynne tried to claim on the PBA’s travel insurance while she was on holiday, her claim was declined! Lynne also had a pre-existing medical condition at the time she took out the PBA, meaning that the travel insurance policy would not have covered her anyway
Also, Lynne already had car breakdown insurance cover, so that element of the PBA’s “benefits” was useless too!
Lloyds failed to offer Lynne any alternatives to the expensive PBA, leaving her feeling pressurised into taking up the account.
And the PPI mis-sale …
When Lynne applied for a mortgage with Lloyds, she was not told that she was also signing up for a PPI policy.
The PPI was useless to Lynne, as she already had options should she be unable to make her mortgage repayments, including critical illness cover, which would have covered her if she became ill and unable to work.
Had Lynne been offered PPI when she signed up for her mortgage, she would have declined it. Thanks to the bank’s blatant mis-selling, Lynne ended up being left out of pocket and totally unaware that she was paying for an insurance policy she neither wanted nor needed.