Thread: Re: A Morbid Tale of Debt

Firstly, why do you consider the PPI was missold?

Originally Posted by fairbank

I realise that this should possibly be on another thread but I need some very quick advice.

Paragon (sorry are they the orignal lender or a DCA)have issued me with a default on a secured debt for £36,000 for arrears of ~ £1,600. The original loan taken out in Dec 2004 was for £25,750 plus £9100 PPI. So you owe them only £1,600 now

I have now disputed the PPi through a company Is this one of these ambulance chasers and their claculation is that it was missold (on what basis was it mis-sold please and that Paragon should refund me for £1,265???if the policy was mis-sold surely you are after the whole lot plus the interest they charged on top (virtually the arrears). I have asked Paragon for information as to how much the reduction will be if I cancel the PPI and they have come back with a figure of about £12 per month. Basically they will pocket about £4500 for the privelege of me cancelling the policy! So the ppi is still running but they have defaulted you on the account

I believe that this account is under dispute, irrespective of the arrears and they are quoting me a figure which includes missold PPI. I agree

Q1 - Can I seek a deferrment of the Default until such time the PPI issue is resolved. Trickly one, if they haved sent a notice of default to you, and it is on your credit file, its already done, but if you dispute it, you can insist they remove it, but they will play hard ball on that one.

Q2. If they proceed to court they will currently still tag on the £9,100 PPI which was missold They shouldn't, but you can when you issue a counterclaim for the mis-sold ppi.

Q3. If there a precedent for Missold PPI. i.e. Can they charge me 50% of the riginal cost for cancellation There is guidence from the FSA regarding cancelling of the ppi.

Q4. They have never ever sent me a statement, so I currently don't know what charges have been added

Q5. Is there a letter template that can be used to send to their solicitors to delay the action until the PPI situation is resolved No there is no template letter, but you can write to them stating that the account is in dispute and clarify your reasons.
To the lender:
Send a S.A.R - (Subject access request) under the Data Protection Act immediately.

This costs £10 and they have 40days to comply with it. There is one kicking about the threads or one on the Bank letter templates. amend it to your details, asking specifically for information on the ppi and the notice of default. Send all correspondence recorded delivery, so you know and can prove that they received them.

Also send them a section 77/78 request under the cca, to get a copy of your credit agreement. You need letter N, it costs £1 and the clock will start ticking. there are strict time limits on this.

Creditors and DCAs - Letter Templates & Budget Planner

You need to get all the infor that they have on you, look at it and see if you can open up a can of worms for them.

Any quick help would be most grateful. They have given me until the 21st December to pay up

Thanks

Hello Fairbank

To help you we need more information regarding your case. Can you answer the questions above please. I feel this is a standard case of lets walk all over our customers, because we can. MMmm but maybe they can't. Are you using a third party to reclaim back your ppi?????

Originally Posted by fairbank

I realise that this should possibly be on another thread but I need some very quick advice.

Paragon (sorry are they the orignal lender or a DCA)have issued me with a default on a secured debt for £36,000 for arrears of ~ £1,600. The original loan taken out in Dec 2004 was for £25,750 plus £9100 PPI. So you owe them only £1,600 now. ORIGINAL LENDER AND I OWE THEM £36OO0 INCLUDONG THE PPI OF £9100

I have now disputed the PPi through a company Is this one of these ambulance chasers (YES)and their claculation is that it was missold (on what basis was it mis-sold please (SEVERAL REASONS BUT BASICALLY IF I DON'T TAKE IT OUT NO LOAN) and that Paragon should refund me for £1,265???if the policy was mis-sold surely you are after the whole lot plus the interest they charged on top (YES I AM)(virtually the arrears). I have asked Paragon for information as to how much the reduction will be if I cancel the PPI and they have come back with a figure of about £12 per month. Basically they will pocket about £4500 for the privelege of me cancelling the policy! So the ppi is still running but they have defaulted you on the account (CORRECT PPI STILL RUNNING AT THE MOMENT DEFAULTED ON FOUR PAYMENTS IN ARREARS SINCE I LOST MY JOB)

I believe that this account is under dispute, irrespective of the arrears and they are quoting me a figure which includes missold PPI. I agree (SO DO I!)

Q1 - Can I seek a deferrment of the Default until such time the PPI issue is resolved. Trickly one, if they haved sent a notice of default to you, and it is on your credit file, its already done, but if you dispute it, you can insist they remove it, but they will play hard ball on that one.(BUT I WANT TO STOP THEM GOING TO COURT FOR REPOSSESSION)

Q2. If they proceed to court they will currently still tag on the £9,100 PPI which was missold They shouldn't, but you can when you issue a counterclaim for the mis-sold ppi.(HOW DO I DO THAT)

Q3. If there a precedent for Missold PPI. i.e. Can they charge me 50% of the riginal cost for cancellation There is guidence from the FSA regarding cancelling of the ppi.

Q4. They have never ever sent me a statement, so I currently don't know what charges have been added

Q5. Is there a letter template that can be used to send to their solicitors to delay the action until the PPI situation is resolved No there is no template letter, but you can write to them stating that the account is in dispute and clarify your reasons.
To the lender:
Send a S.A.R - (Subject access request) under the Data Protection Act immediately. (PROBLEM HERE IS THAT THE LOAN WAS UNREGULATED ie OVER £25,000 - CAN I STILL S.A.R)

This costs £10 and they have 40days to comply with it. There is one kicking about the threads or one on the Bank letter templates. amend it to your details, asking specifically for information on the ppi and the notice of default. Send all correspondence recorded delivery, so you know and can prove that they received them.

Also send them a section 77/78 request under the cca, to get a copy of your credit agreement. You need letter N, it costs £1 and the clock will start ticking. there are strict time limits on this.

Creditors and DCAs - Letter Templates & Budget Planner

You need to get all the infor that they have on you, look at it and see if you can open up a can of worms for them.(I AM NOT SURE HOW TO DO THIS - FIRST AND FOREMOST I WANT TO STOP ANY FURTHER ACTION AGAINST ME. THE LOAN IS SECURED ON MY PROPERTY AND IS A GREAT WORRY AT THE MOMENT AMONGST EVERYTHING ELSE - CAN YOU PROVIDE A LAYMANS TERMS OF ACTION DO THAT I CAN GET MY HEAD AROUND IT TO START WITH AND BUILD UP KNOWLEDGE ALONG THE WAY THROUGH THE FORUM - IT HAS HELPED ME THIS WAY SO FAR)

Any quick help would be most grateful. They have given me until the 21st December to pay up

THANKS FOR YOU COMMENTS

Hello Fairbanks,

I have just caught up with your thread on the debt forum. I have true empathy and do know how you are feeling. I have a few companies after me, but I only entertain them if they have acted lawfully.

The first thing to do is send a Subject access request to Para what ever and get the information that you need.

How far up the road are you with the 3rd party, who are helping you reclaim back your ppi. Are you in a contract with them?????? How far are they up the road with it at present. Can you get out of it??????

You could have actually done this yourself and be able to keep all of the refund to yourself.

I cant get my head around the fact you still owe them so much if you have been paying the loan for so long. Is the £25,075 the amount they actually gave you?????

Can you tell us
The amount of credit given to you
I know the ppi amount £9100 (does this include the interest they have added on top for the ppi)
Interest rate
Total charge for credit
Amount payable the total figure and the amount you paid each month.

Have you received a Notice of Default, and if so does it contain the amount of ppi that you are disputing????? The total amount they are claiming on the N of D is inaccurate, so you can challange them on this.

Hi Fairbank (again!)

The S.A.R is simply requesting all paperwork that a company holds on you so i do not believe the amount of the loan is relevant. I can't remember if you've sent one on your main thread so i've put the link below just in case. You'll need to send a £10 postal order (the extra cost will be worth it in the end). As always, send recorded and keep all receipts. I usually write what the letter was about eg S.A.R. on the receipts.

http://www.consumeractiongroup.co.uk...ction-act.html

Fairbank, i've just read the thread below by Hell Has No Fury, use the letter in it for your S.A.R:

http://www.consumeractiongroup.co.uk...s-request.html

Originally Posted by fairbank

Here are the original figures from the original credit agreement

Unregulated Credit Agreement:

Cash Loan Amount £26,000

PPI £9,100

Total £35,100

288 payments of £321.32 at 8.31%. Now payments have risen to £404 per month with interest rate increases.

This would mean a staggering £92450.00 to be paid back. Interest being £57,440

I work out that the PPi will cost me £23,968 over the term on the assumption that I am paying interest on it.

My reasons for the PPI as Missold are:

• Salesperson was pushy and stongly advised me to take it out or it would be unlikely that I would get the loan
• I was not asked about any pre existing medical problems
• Not asked if I had any existing cover or employer would cover them for a short period.
• I have tried to cancel but the refund is not derisory

Basically they have now defaulted me for arrrears and the PPI is included in the £36,000 that they say I owe them. They have never sent me any statements in three years and I calculate that I have paid them about £10,000 in the past 26 months and yet the figure that I owe them is higher than the original amount that I borrowed!

I am using a company called Ratio money to claim back th PPI. On reflection some of the advice that I have had is not good ie just cancel your PPI and see what they offer.

I want the whole thing refunded which will reduce my payments by about at least 25% and the interest as well.

I now have to contest this with the so that they recognise that the account is in dispute and get back my PPI premiums that I have already paid. I can them clear the arrears with them and start paying the reduced monthly payment. Once in a position to pay them off (possibly remortgage on a much reduced interest rate then I will)

So I need to write to them very soon and get this PPI sorted out.

Thank

Hello Fairbank,

Where is this company up to with the ppi claim?? This make it a bit more complicated as if you were doing it yourself, you could have started the process by sending in your preliminary letter for a refund of the ppi, interest they applied and interest to boot. You would be in control.

You state

I work out that the PPi will cost me £23,968 over the term on the assumption that I am paying interest on it.

If you work this out on a spreadsheet, the statutory interest (allowed by the court) of this alone comes to and extra £5,652.51. This is based on your figures, if they are correct.

Originally Posted by fairbank

I now wish that I had done it myself but two weeks ago I was not thinking straight

it has been asked before but have you signed a contract with this "ambulance chaser", can you have them pass it back to you?

No point giving them some of your money when it is your after all..

Is this the name of the company ratiomoney.co.uk?

EDIT - Commercial Link removed

A quote from their site

" Ratio Money only charge a FLAT 20% on completion of your claim. We also offer a Price Promise call for details. "

They also say

"We also offer a Price Promise we will beat any competitor by 1% and we do not keep your interest*!"

Can you chalenge this and say you are their competitor and charge a fee of 0% therefore they are no longer needed.

Or get a friend to offer, in writing, to do it for 1% and they would then have to do it for free!!!!

Very important for us to know if you signed a contract and can you take back control.

Originally Posted by debt_mountain

Is this the name of the company ratiomoney.co.uk?

EDIT - Commercial Link removed

A quote from their site

" Ratio Money only charge a FLAT 20% on completion of your claim. We also offer a Price Promise call for details. "

They also say

"We also offer a Price Promise we will beat any competitor by 1% and we do not keep your interest*!"

Can you chalenge this and say you are their competitor and charge a fee of 0% therefore they are no longer needed.

Or get a friend to offer, in writing, to do it for 1% and they would then have to do it for free!!!!

Very important for us to know if you signed a contract and can you take back control.

Well put Debt Mountain, I would try that one as well.

Fairbanks it is important that you take control of this situation. These ambulance chasers are not going to try to sort out the default issue are they.

I would also write to para whatever and state that you now consider the account in dispute regarding the mis-sold PPI and that you would appreciate the default is put on hold until the issue is resolved. Also, send the same letter to their solicitors. and see what happens.

I don't know were you stand on the legislation bit with an unregulated agreement. Maybe pm peterbard for advise on this. Or put up a question of the Consumer credit act agreements for info

oops double post.

not sure how it works when it is unregulated. Does it make it better or worse for the debtor? I know Blackhorse refused to in above 25k but not sure why.

Originally Posted by debt_mountain

not sure how it works when it is unregulated. Does it make it better or worse for the debtor? I know Blackhorse refused to in above 25k but not sure why.

Hello DM,

I am not to sure either, but I think it then does not come under the consumer credit act 1994. So therefore there is less protection for the debtor. We need a bit more advise on this matter.

I think it may be that an unregulated agreement is still regulated by the FSA, it is worth giving them a call tomorrow to find out.

I will keep digging to see what I can find.....