Northern Rock Mortgage PPI Claim

[supasta1]

Christmas is a tough time of year and I could not afford to make my mortgage payment.... At the same time I had just found out that I had PPI on my mortgage which i did not know about so i initiated my claim.

 

When I initiated my claim I explained that I could not afford to make my December payment on my mortgage and that I would like to offset Decembers payment against the money northern rock owed me for my PPI (it sounded fair to me).

 

Anyway, Northern Rock declined this offer and are now ruining my credit file with constant late payment markers as I am one month in arrears.

 

If they actually owe me money can they do this and when i eventually get my PPI refund can I go after them for damaging my credit file while they actually owed me money??

 

Any views would be welcome thanks...

 

My PPI payments were £26.01 a month and I made 64 payments. It ran from May 2004 until Sep 2009, in simple terms how do I calculate the 8% simple interest??

 

Thanks in advance

Edited February 5, 2013 by supasta1
Missed a bit

[dx100uk]

all details are in no.1. below

 

so you have a current mortgage not linked

to the one you have found PPI on?

 

or was it a refinance?

 

dx

[ims21]

Use this spreadsheet to work out the 8% interest you would be due.

 

What are the reasons you have given for the mis-sale?

 

StatIntSheet v101.xls

 

You may stand a chance of getting a default removed if you can a) achieve a successful outcome to the PPI claim and b) show that the default arose purely as a result of PPI.

 

Is the premium paid to NR or some other organisation?

[supasta1]

It was refinanced in 2009 but it is still with northern rock....

 

The PPI was paid to a company called Pinnacle insurance, I paid it to northern rock and i assume they passed it to the insurance company.

 

It has not defaulted but in todays world a missed payment marker etc is just as bad....

 

Surely if a company owe you money then i should be able to offset that against money they claim i owe them??

 

Banks often take money from our accounts to offset against money we owe them so why can we not do the same?

 

I did not miss the payment because of the PPI but I missed a payment while they owed me money for the PPI which in my eyes shhould not go down as a missed payment, they should just minus that monthly payment from what they eventually pay me.

 

I was told that I must have PPI back in 2004 in order to get a mortgage and that they must set it up for me there and then

[ims21]

Until a PPI claim is successful then they don't owe you money.

 

The way they would look at the missed payment is that there is a contractual obligation to make a payment each month on a specified date. If that payment isn't made then they do have a responsibility to accurately record the conduct on the account.

[supasta1]

I understand that but while my PPI claim is under investigation surely they should suppress any negative entries until that investigation is complete??

 

I have been working so hard to clean up my credit file and now this has happened it feels like a kick in the teeth

 

I can not unserstand how a company who owes you money can be allowed to say you have missed a payment at the same time, if my claim is successful which im sure it will be then I believe some of the money should be offset against my arrears and that the late/missed payment markers should be removed or it would be unfair on me!?

[dx100uk]

post 5 will be the overiding logic here.

 

unless the pi wipes out your mortgage prior to your troubles

 

they sre sadly within their rights

 

you might be able to have it dealt with under a goodwill gesture

 

dx

[supasta1]

I shall concentrate on my PPI refund for now and once this has been resolved I will consider my options with regard to my credit file....

 

I believe that something can be sorted, whether it is a goodwill gesture or some kind of action through the courts? I do not know at this moment but once my PPI claim has been proved to be successful then at that time it is proved that they did in fact owe me money at the time they marked the negative info on my credit file which I believe is wrong!!!

 

I may just have to initiate proceedings and see if they want to risk fighting me...

 

I am sick of these bullying companies having one rule for them and another for us

 

Rant over

 

Thanks for your advice so far

[supasta1]

what makes it worse is that in my mind i missed decembers payment and then I made january's payment and i will make february's payment etc

 

but on there systems it will have me missing decembers, then what i paid in january will pay decembers so it will have me missing january, what i will pay in february will actually be paying january's so they will have me down as missing february's payment etc... so until i can pay double in one month they will mark me down as missing every month!!!

 

I thought i would be just down as missing one payment and that was it....

[ims21]

You will only have one late payment/missed payment marker as long as all others are kept up to date

[supasta1]

But they tell me it will be refresshed with another one every month until I make 2 payments in a month to clear my arrears.... They said that is how their system works

 

Every month they will class me as being late all over again

[ims21]

That would not constitute an accurate reflection of the conduct of the account.

[supasta1]

I know...

 

I will just have to pay for my stupid credit report again and keep an eye on it and take it from there!!!

 

I will keep you posted

[supasta1]

Heard back from northern rock today about my ppi claim... They said that they will not uphold my complaint because its been over 3 years since I cancelled the ppi policy?

 

I had ppi on my mortgage from may 2004 and September 2009... I believed I had 6 years from the last payment made or from the point I realised it had been miss sold, I am assuming they are just trying to fob me off??

 

Any advice great fully received!!

 

They are assuming that I cancelled it because I realised I did not actually need it and therefore I must have known it was miss sold so as its been over 3 years I can't claim!!!

 

I don't believe this is true but would like to here it from someone who knows better than me

 

Thanks

[ims21]

In my view they are fobbing you off.

 

You may have cancelled it following a general review of your affairs and simply decided you no longer needed it. At that point you may not have known it was mis-sold.

 

It is not for them to assume the reasons for cancellation.

 

You need to keep challenging them on this point in my view.

[supasta1]

Is the theory true tho?

 

I thought you had 6 years to claim anyway?

 

I am going to challenge them on it, I won't go to the FOS because it takes too long... I will go straight to small claims if I get no joy

[ims21]

No their theory is not true.

 

S32(1)© Limitations Act 1980 covers this....payments made under a mistake

[supasta1]

Seen as though this was their final response, should I write to them one last time with my arguements and see what they come back with or should i head my next letter 'Letter Before Action' and give them 14 days to respond? At least that way they know they can't just fob me off again and if they do I will be in a position to initiate proceedings immediately without any further messing about?

[ims21]

Your choice...there is no problem with issuing a Letter Before Action but only do so if you actually intend to go through with court proceedings.

[supasta1]

I definately will be issuing proceedings.... If it gets that far, is there a simple POC already in place for PPI claims or will I have to do one from scratch??

 

Also if I am forced down the court route, is it possible to ask the judge for an award of compensation on top of the PPI + simple interest to cover the stress and anguish they are continuing to cause me?? I believe if i am forced to go to court I should be able to add that in but that is just my opinion lol

 

Thanks for your help

[ims21]

There are some PoC's around....they wouldn't be cut and dried for your case and would need some amending but that bridge can be crossed if/when you come to it.

 

You can ask for extra compensation at the courts discretion I believe but again let's see if we can get them to cough before it gets that far.

[supasta1]

LBA sent via email and recorded delivery...

 

They now have 14 days to respond