Thread: PPI on defaulted loan

Morning,

Wondering if someone could give me a bit of advice.

I took a loan out in Feb 01 and was told by the bank I had to take PPI to "ensure" i got the deal I was given.

A couple of years ago I got into a bit of financial mess and approached the bank to remove the PPI so I could afford to keep the payments up - the bank refused but offered to give me a new loan without the PPI but when quoting me the new deal it was only a few pound less than I was paying back anyways.

I ended up being defaulted and handed over to a DCA (Jeremy Sutcliffe) and I agreed to a new repayment figure, but a few months down the line they insisted I pay the full payments or get taken to court etc which I have managed to maintain thus far but is a real struggle. I am currently paying a few £ over my agreed repayments than the original loan agreement.

1 - My repayments still include the PPI which is approx £82 a month - should I still be paying this on a defaulted loan?

2 - Also I'm not use to this but if i'm defaulted is the interest still added from the original agreement or should I just be paying back the loan amount - have already paid back over £22000 on a £15000 loan.

3 -I made a claim on my PPI (resulted in them paying my loan for 2 months) can I still claim back my PPI minus the money they paid out?

If I could somehow settle or get these payments down (£260 a month) it would take a lot of strain away from my finances & stress from me.

4 - I have a CCA & S.A.R - (Subject access request) here ready to go, but am also wondering if it's worth sending a letter regarding the PPI? If so any templates I could send?

Thanks for any advice

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Originally Posted by scottish007

Morning,

Wondering if someone could give me a bit of advice.

I took a loan out in Feb 01 and was told by the bank I had to take PPI to "ensure" i got the deal I was given. Which bank was this?

A couple of years ago I got into a bit of financial mess and approached the bank to remove the PPI so I could afford to keep the payments up - the bank refused but offered to give me a new loan without the PPI but when quoting me the new deal it was only a few pound less than I was paying back anyways.Did you agree to take out a new loan?????

I ended up being defaulted and handed over to a DCA (Jeremy Sutcliffe) and I agreed to a new repayment figure, but a few months down the line they insisted I pay the full payments or get taken to court etc which I have managed to maintain thus far but is a real struggle. I am currently paying a few £ over my agreed repayments than the original loan agreement. They can only mke you pay what you can afford.

1 - My repayments still include the PPI which is approx £82 a month - should I still be paying this on a defaulted loan?

2 - Also I'm not use to this but if i'm defaulted is the interest still added from the original agreement or should I just be paying back the loan amount - have already paid back over £22000 on a £15000 loan. No they will want everything that you agreed to pay them

3 -I made a claim on my PPI (resulted in them paying my loan for 2 months) can I still claim back my PPI minus the money they paid out?They will argue that you used the benefits of the ppi.

If I could somehow settle or get these payments down (£260 a month) it would take a lot of strain away from my finances & stress from me. We can but try

4 - I have a CCA & S.A.R - (Subject access request) here ready to go, but am also wondering if it's worth sending a letter regarding the PPI? If so any templates I could send?

Thanks for any advice

Hello Scottish,

I would get these letters sent asap. I feel that there is no need at present to mention the ppi? They will know that you are looking into the alleged debt???? Can you post up your answers to the questions please,

You will need to be patient as it is the wrong side of xmas for answers from them, You will need to take into account the xmas holidays for their timelimits for your resquests.

The CCA is twelve working days - so no need to extend that. The DSAR is 40 days - that should be long enough, they are only off for three days.

Don't forget that they also levy charges and interest to our acconts over the holidays - so why allow them extra time?

Hello

Fair comment Alan.

Originally Posted by grumpy001

Make sure your still within statutory reclaim period (ie 5 years in Scotland ) for this before spending money & building hopes etc.

Hello

Regarding claiming within the statutory period, please read this post by Alanformderby regarding claims outside the 5-6yrs statutory period.

The Limitation Issue.

As I understand it, claims for PPI misselling are based on misrepresentations made during the selling process. In some cases claimants may consider these misrepresentations to be fraudulent in nature (see earlier posts). There are also likely to be issues of concealment of facts and/or concealment of law.

My approach to the limitation issue is to not mention it unless it is raised by the loan company - at which point write back expressing your disappointment that they are trying to hide behind limitation, and that you consider that the limitation period will not apply due to section 32 and/or section 14A of the limitation act 1980.

You will find plenty of information and caselaw available to support all three exclusions outlined in section 32.

Should the claim escalate into a county court action, I would only include it in your POC's if it has been raised by the loan company as a reason for them not refunding. If they then raise it in their defence I would suggest you file a response to their defence using all three sub-sections on an "and/or" basis - and I would also include section 14A as well, just to be absolutely sure.
__________________
Alan, Derby, UK.