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Missold PPI on both a statute barred debt and unpaid loan
Hi all,
Question from a family member had me stumped...
My cousin took out a loan in 2002 with HFC... was subsequently sold PPI despite him being told that the loan was conditional upon him taking PPI (a HFC tactic I am led to believe).
He defaulted on the payments in Dec 2003 and has made no payments in that time or acknowledged the debt. However, he paid a significant amount of PPI premiums at the start of the loan (some £800).
The loan itself is suspected to be statute barred (I have looked and it more than likely is).
Yes he does, first we will assume the loan is statue barred under the limitations act 1980 so it still exists in principal but they cannot enforce the debt etc etc . .
The missold PPI is not statue barred from his point of view as in referance to the same limitations act 1980 section 32C the right of action is that the clock can only start ticking from when he became aware of the missold PPI.
Once a debt is statue barred it will stay time barred, the claim of PPI will not affect that and the PPI is claimable, however the challenge we have is on response from them acknowledging the claim they can take the monies owed to you for missell to pay the arrears which will probably be the full amount as not paid for 6 years plus and they can do this . . but worth doing all the same.
I am a consumer helping other consumers. Together we can and will make a differance. Please double check any information or advise I may give as I like yourself am learning as I go along in life.
1) give a small donation to this site to keep it going because without this forum I would know nothing.
2) Use your experience to help somone else on another thread.
Please do not PM me, my mail address is my username at this site address . I will not under any circumstances give out advise or help through mail, only on the open forum, however feel free to mail me to point me towards your thread and general talk etc.
Re: Missold PPI on both a statute barred debt and unpaid loan
Thanks for your opinion Ozzy...
I was of the opinion that they would use the PPI reclaimed amounts to cover the arrears. But then the loan and PPI were designed to be completely separate products and therefore should be administered separately.
In addition if a product has been missold the restitution would surely be on the basis of that product alone.
You make sense... I would be inclined to agree with you but I would have thought the above would apply? What do you think?
Re: Missold PPI on both a statute barred debt and unpaid loan
I totally agree that they are seperate products and the restitution should be on the one unique product alone, so this states that they cannot take your monies and pay off a loan or anything else owed to them, but if an account is in arrears they can and will use the monies to clear it up. I agree it is wrong but as far as the fos, FSA and also if it went to court this would be the outcome.
Depending on a companies own legal advise they may not pick up on this and pay it out but if they do and offer full refund plus interest then they do have the right to pay off the arrears owed before paying you.
Once offer is made and if it goes the way I suggested we can certainly try to argue it and put a letter together but if it goes further we will probably lose. . . If anyone else has any other suggestions or a way around this then please jump in.
I am a consumer helping other consumers. Together we can and will make a differance. Please double check any information or advise I may give as I like yourself am learning as I go along in life.
1) give a small donation to this site to keep it going because without this forum I would know nothing.
2) Use your experience to help somone else on another thread.
Please do not PM me, my mail address is my username at this site address . I will not under any circumstances give out advise or help through mail, only on the open forum, however feel free to mail me to point me towards your thread and general talk etc.
Re: Missold PPI on both a statute barred debt and unpaid loan
I'm thinking along the same lines as you... but let's throw another thing into this.
The original debt has been sold to a DCA (namely Aktiv Kapital) who understand that the debt is statute barred.
I know, from research of the CCA, that the new owner can collect the benefit of the assigned contract but the previous lender is responsible for the obligations. I will have to find out where I got this from but it should be close to hand.
Therefore what do you think would be the status of the PPI claim in that scenario?
Re: Missold PPI on both a statute barred debt and unpaid loan
I know, from research of the CCA, that the new owner can collect the benefit of the assigned contract but the previous lender is responsible for the obligations. I will have to find out where I got this from but it should be close to hand
Ah, now that changes things. . . If the debt is sold and the PPI claim is rightly claimed against the orriginal creditor then refund has to be done via cheque as creditor has given up all rights to the debt. . winner takes all. They no longer own the debt to pay themselves their arrears. . . to allow the claim and pay themselves for arrears they do not own would be nothing less than fraud. To pay the DCA would not benifit them and would then breech DPA as it does not concern them as to your balance. . .
I am a consumer helping other consumers. Together we can and will make a differance. Please double check any information or advise I may give as I like yourself am learning as I go along in life.
1) give a small donation to this site to keep it going because without this forum I would know nothing.
2) Use your experience to help somone else on another thread.
Please do not PM me, my mail address is my username at this site address . I will not under any circumstances give out advise or help through mail, only on the open forum, however feel free to mail me to point me towards your thread and general talk etc.
Re: Missold PPI on both a statute barred debt and unpaid loan
No worries, we get there in the end. Keep us informed on how this one goes if you will. If I miss the thread mail me at my username at consumeractiongroup.co.uk . good luck, its an interesting one. Let me know if you need help on it, dont mention statue barred in the first PPI claim letter you send as its not an issue till they make it an issue, stick to a simple claim letter and use it as a defense.
I am a consumer helping other consumers. Together we can and will make a differance. Please double check any information or advise I may give as I like yourself am learning as I go along in life.
1) give a small donation to this site to keep it going because without this forum I would know nothing.
2) Use your experience to help somone else on another thread.
Please do not PM me, my mail address is my username at this site address . I will not under any circumstances give out advise or help through mail, only on the open forum, however feel free to mail me to point me towards your thread and general talk etc.
Missold PPI on both a statute barred debt and unpaid loan
despite him being told that the loan was conditional upon him taking PPI (a HFC tactic I am led to believe).
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Re: Missold PPI on both a statute barred debt and unpaid loan
