I got a quote from Lloyds TSB for a loan of £7,000 about 3-4 years ago. The contact centre person at Lloyd's undertook a lengthy assessment of my finances and despite my confiming to them that I had £11,000 investment savings (which I could get my hands on at any time) and a further £10,000 held in the Building Socety account between myself and my wife, I was informed that my financial cirumstances meant that I would need to take out PP. I was so incensed having spent over an hour of this assessment that I questioned why the assessor was not considering my savings and demanded an explanation as to why the Bank would only be prepared to lend me the money if I took out PP. It got to stage where the Bank then decided that they were on dodgy ground and tried to sell me another type of insurance policy which would have only been around a third of PP. I can't recall now what this other policy was. What I do know is that the Bank immediately approved the loan when I said I felt something iffy was going on there and threatened to contact the Financial Ombudsmen. Despite Lloyd's wasting over an hour of hard sell, decided not to sign the papers and went with HSBC instead who not only gave me a better rate, had insisted they would not attempt to sell me PP. Lloyd's TSB get what they deserve.
I reckon "Over 50 Guaranteed Life Plans" are going to be the next PPI. All the financial institutions are trying to sell them - which tells you everything you need to know! When will the banks ever learn? These policies are "without profits, only pay out on your death" junk. They are sold as "offering peace of mind" but If you live long enough you pay more in premiums than your estate gets back and that doesn't even take account of inflation. LLoyds just tried to sell me one. It's totally unsuitable - they are utter morons. I'm struggling to think of just one reason that could possibly justify trying to sell a "without profits" policy to anyone at all in any circumstances: they are toxic rubbish. Hey, Lloyds couldn't even be bothered to offer me a free Parker pen or £20 worth of M&S vouchers for signing up. At least most of the other tossers do that!
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Wife claimed from Northern Rock and the credit paid the loan off and banked her a £600 chq.
Do it youself using model letters. Most companies will rob you.