PPi mis-sold and refunded - Can I claim consequential losses?

[Gallen]

Hello everyone,

I was mis-sold PPI.I instigated a complaint and this has been looked in to by the bank.

Around 5 weeks ago I recieved a letter from my bank explaining that they are refunding me all of the payments made by me to this mis-sold ppi policy (taken out circa 2000).

This totals around £3500.(There is still no sign of payment nor the cheque they have promised -that's another issue).

Anway,Since the time of this policy I struggled to keep on top of my bank account because "charges" and "fees" imposed by the bank caused me to go more and more overdrawn - meaning that I had to keep increasing my overdraft to encompass them and stop futher charges.

The question I have is this: Is there any way that I can claim back the charges from the point of a "Consequential Loss" perspective?

i.e if the bank had not wrongly taken the PPI money for the mis-sold policy (including an early re-payment fee of £500+) I would have not incurred these further account charges or had to exponentially increase my Overdraft month after month.

I stress that I am looking to approach this from a CONSEQUENTIAL LOSS point of view - stemming from the mis-sold policy (of which has been declared illegal/wrong, hence the assumption of liability admitted through the refund).

If I would have had the money in my account there would have been no need for the charges.

Obviously the "Bank Charge refund" opportunity has been ruled. This is different as it is purely in relation to consequential losses.

Any advice appreciated.

G.

Edited December 6, 2011 by Gallen
re-format

[BankFodder]

which bank you talking about?

 

My view is that you can claim certain consequential losses but you won't be able to do it from the ombudsman. You would have to do it through the courts and if you have signed something for the bank agreeing to accept the payments in full settlement then that will make things much more difficult in terms of getting additional money

[Conniff]

To justify that you are going to have to show that since 2000 you really couldn't afford to keep the payments going. The banks are repaying ppi on a lot of cases as there is no proof that it wasn't missold and this is the easiest way out.

If you are going to claim consequential losses, they won't be so easily won over and you will have a fight on your hands that you will struggle to justify.

[Gallen]

Hi BankFodder Thanks for your response. - This relates to Lloyds TSB. I have not signed anything in terms of accepting any refund as full or final payment.G.

[Gallen]

Hi Conniff,I repaid the PPI in full on settlement of my Loan.I never missed a payment. I also incurred an early repayment fee for the PPI.They have agreed to refund in full for the Mis-Sold policy including the early repayment charge plus interest.The issue I have is that had they not taken this money for the mis-sold PPI, I would have not incurred unauthorised OD charges (etc) as I would have been in credit by the amount of the PPI.I do not think this is unreasonable.For example, they unlawfully take £1500 from me - then they continue to charge me for being £1500 overdrawn, meaning that their charges then force me to increase my OD etc to encompass the charges.G.

[Conniff]

I see now Gallen, I misunderstood reading your original post. You have nothing to lose by claiming, and I would be very interested to see how it goes and their response to your letters.

 

If this does go in your favour, there are a lot of people who will be interested.

[Gallen]

(Sorry about this weird formatting of my posts - seems to be going in a single paragraph for some reason???) Yes it could be interesting. Basically: - I have been charged money for something that was illegally sold to me - I have then been subject to charges (seemingly uncapped and un-regulated amounts) by the same bank for not having this money, which has caused me to go overdrawn and incur more charges (and repeat). If I illegally took £100 of someone , could I then charge them for not having £100? (charge them interest for not having it, and charges for going over -£100)? They have to refund the money I paid. They should be forced to return the charges they took for me going overdrawn, simply due to me having a loss caused by them. Had I not been mis-sold this policy, I would have had the money to stop me going overdrawn and being charged for this pleasure. Would anybody have any advice on how to begin this claim to recover consequential losses? Thanks, G

Edited December 6, 2011 by Gallen

[Conniff]

If you account was well run and in the black until this withdrawl, then the charges shouldn't exist as the reason it came about didn't exist.

 

(seemingly uncapped and un-regulated amounts)

 

As now reported, these can equate to an APR of up to 1million % - that makes pay day loans look like a bargain.

 

I think you should start with an SAR so you have all the paperwork at your fingertips.