I dont see why Lloyds have to pay out anything. YOU signed the contract, YOU had 30 days to cancel it so YOU should have known if there were any exclusions in your contract.
Obviously if the PPI was added without your knowledge then thats a different thing altogether.
They are saying (the press) that you can claim if the seller did not explain any exclusions in the contract when you signed for it. Well in that case can I claim back for 30 years of car, bike, house insurance as well as no-one has ever told me of any exclusions in any policy i have ever had? I doubt it very much.
On what terms do you intend to claim?
Chip
P.S I do not work in a bank.