Car Written Off But Still Owe PPI 2 Years Later

[DNKPets]

Looking for a bit of advice here. I have pasted below a copy/paste of the letter that I sent to my finance company after receiving a bil for outstanding PPI after nearly two years without contact.



"In September 2004 my car under this finance agreement was stolen and subsequently recovered as a total loss. The insurance company paid out the value of the car and the Gap insurance covered the remainder. This was all settled on or around the 25th of November 2004. As far as I was aware at the time this was the end of any agreement with yourselves. The car finance agreement had been paid off as a “Full and Final” settlement.

Now almost 2 years later I have received a bill for £737.73 plus Administration Fees of £30. This bill is being dealt with by your Debt Recovery Department. Obviously this has me very worried. In the two years since my “Full and Final” settlement I have never received any bill from you and yet now all of a sudden I owe you nearly £800 and it has been passed to Debt Recovery. I made a phone call to your department and have been told that apparently it is for Payment Protection Insurance purchased at the time of the original agreement. I have worked out that the amount owed equates to 21 missed payments of £35.13. At no time when settling my account via Insurance claims was I informed that I would need to continue to pay this. I have never been billed for it despite obviously having never paid it since the account was settled and at no time have you taken the payment via direct debit. Surely if the payments were still to be made then you should have continued to draw on the direct debit. Why would I continue to need payment protection anyway as I am not needing to make any payments on a settled account. I have read your paperwork and the copy of your group insurance policy document and I can see nowhere on either that states that I should continue to pay for PPI after settling early. It is my belief that at the time of settling my account that any cover provided by the insurance is no longer required and that therefore cover should have been cancelled for myself on what appears to be a group policy owned by yourselves.

I feel that this is an error that is entirely yours and have taken the advice of the Citizens Advice Bureau and I believe that no payment is owed by me or needs to be paid by me. I await you earliest written response."





It is quicker to copy / paste the letter here than it is to explain the problem. Am I likely to be in the wrong here or am i right in not paying this. Any help / advice here would be very much appreciated.

Derek

[JonCris]

I suspect your correct as any risk no longer exists but you really need to check the wording as they will almost certainly claim that before finance settlement they where on risk.

You should also check out this site PRINCE V's BLACK HORSE PPI REFUND as you may be able to recover those PPI charges you have already made. If so they might wish they had kept shtum!

[gemspan]

Hi there

I think this must be a mistake on their part. I would imagine that this letter will set things straight. If it doesn't then I would take it further but, as you say, this loan is settlement and if the PPI is on the loan then that should automatically be cancelled with the loan. Error on their part me thinks but very good letter and I think it will sort things out.

Annie