PPI mis-selling: One family's story

Paul Clarke Paul Clarke found that he, not the PPI policy, had to pay off his wife's loan

Related Stories

Paul Clarke, an IT worker at a school in Crewe, told the BBC about the example of the £5,000 loan taken out by his wife Carol-Ann.

Despite taking out a payment protection (PPI) policy to go with it, the bank refused her claim when she lost her job, and he had to pay off the loan instead.

He estimates that the PPI premiums for what turned out to be useless insurance cover amounted to between £300 and £400.

"Seven years ago we were invited to go the bank branch for an account review," Paul said.

"We needed some funds and were offered a loan in my wife's name. She took up the PPI because she was told if she lost her job it would make the loan repayments for her."

"Two years ago she lost her job with a local cleaning firm, so she went to the Lloyds branch to activate the PPI."

"She was told she couldn't because I was working and money was still coming in."

"I had to make the loan repayments instead."

Had any of this been explained to him or Carol-Ann when she took out both the loan and the PPI?

"No, definitely not, I am absolutely sure," Paul said.

"There was no reference to me in the loan at all. There was no mention at all of any restrictions."

"We had been left with the impression that if my wife could not pay for any reason the PPI would kick in and would make the payments for her."

Would she have bought the PPI had she known the true state of affairs?

"No, it would have been pointless."

When did Paul realise his his wife might have a claim for mis-selling?

"I only recently realised I might have been done wrong over PPI."

"We haven't complained yet. I am going to see if they do write to us. If they don't we will make a formal complaint."

When contacted by the BBC, Lloyds offered to look into the Clarkes' case.

A spokesperson added: It must be noted that we wish to handle and resolve all complaints "quickly and to the satisfaction of our customers".

"We take all our complaints very seriously and are committed to handling them on a fair and consistent basis.

"In line with our complaint handling policy we will assess a customer's PPI complaint and provide redress where appropriate."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • The OfficeIn pictures

    Fifty landmark shows from 50 years of BBC Two


  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Peter MatthiessenPeter and Paddy

    Remembering two of the greatest travel writers


  • Worcestershire flagFlying the flag

    Preserving the identities of England's counties


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.