Thread: Current account/PPI query............

Hi everyone

Even though this query relates to PPI applied to loans serviced by my current account for which I already have a thread on the go, I want to keep this aspect separate so have started a new thread.

Over the years we have had several loans with PPI all serviced by our ltsb current account. These were all sold to us on the pretext that we had to have the PPI in order for our loan applications to be approved.

That current account (which has not been in use for a year) has an outstanding overdraft balance for which we are being pursued by a DCA. The o/d consists entirely of charges for which there is a claim stayed in the court system.

My query is this -

If the PPI had never been applied to those loans and our loan repayments had subsequently been lower, many of the direct debit payments which were unable to be met due to lack of funds would have been made and this in turn would have prevented the charges being applied in the first place.

For example, say we had paid £3000 in PPI premiums and currently our o/d balance stood at £3000, it could be argued that if we had never been forced to take the PPI we would be £3000 better off and would not now have a £3000 o/d. That's without taking into account the previously mentioned charges...........

So what I'm wondering, now that the fos have managed to get the bank to admit several of these PPIs were mis-sold (although with no admission of liability and the offers are not yet what they should be), it would be possible to use this argument as a case for why the o/d balance being demanded by the DCA is incorrect?

Any thoughts or advice on this would be most welcome please

Many thanks,

Landy x

Bump............

Hi everyone

I understand that I have to show there was a direct link between the PPI that was charged (and shouldn't have been as it was mis-sold) and the payments that were subsequently missed. I'm now having great fun (not) going through many years worth of statements to try to establish some direct links and also to prove consequential loss.

If anyone can offer any advice or guidance with the best way to go about this it would be hugely appreciated, thank you.

What I really need is access to some really good banking software

Landy x

Originally Posted by landy_alert

Hi everyone

Even though this query relates to PPI applied to loans serviced by my current account for which I already have a thread on the go, I want to keep this aspect separate so have started a new thread.

Over the years we have had several loans with PPI all serviced by our ltsb current account. These were all sold to us on the pretext that we had to have the PPI in order for our loan applications to be approved.

That current account (which has not been in use for a year) has an outstanding overdraft balance for which we are being pursued by a DCA. The o/d consists entirely of charges for which there is a claim stayed in the court system.

My query is this -

If the PPI had never been applied to those loans and our loan repayments had subsequently been lower, many of the direct debit payments which were unable to be met due to lack of funds would have been made and this in turn would have prevented the charges being applied in the first place.

For example, say we had paid £3000 in PPI premiums and currently our o/d balance stood at £3000, it could be argued that if we had never been forced to take the PPI we would be £3000 better off and would not now have a £3000 o/d. That's without taking into account the previously mentioned charges...........

So what I'm wondering, now that the fos have managed to get the bank to admit several of these PPIs were mis-sold (although with no admission of liability and the offers are not yet what they should be), it would be possible to use this argument as a case for why the o/d balance being demanded by the DCA is incorrect?

Any thoughts or advice on this would be most welcome please

Many thanks,

Landy x

Hello Landy,

I like the train of thought but the problem is getting the FOS, FSA etc to think in the same way.

My only suggestion is to complain to all of the regulatory bodies about your particular case. FOS, FSA, ICO, Trading Standards, OFT and anyone else you can think of. A single standard letter putting across all the salient points copied to them all with a copy to LTSB is the only advice I am able to offer on this one.

I see exactly where you are coming from as mis-sold PPI is the route of all the evils on the loans front. I wish you every success.

Let the world know what has been going on

aa