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£10k EGG loan incorporating a loan for 1,750 for PPI - did it need 2 credit agreements?


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I had an Egg loan way back in 2004 for £10k.

Egg added £1,750 to the loan for PPI

making the total I signed for £11,750.


Cutting a long story short

I ran into financuial trouble in 2008

but made an arrangement to pay reduced amounts

(actually ignorant of the existance of the PPI - I'd forgotten I had it

- and Egg conveniently forgot to remind me.... but no matter).



However, when I became aware in 2010,

I started asking difficult questions eventually culminating in Direct Legal & Collections writing to say to stop paying.



The total remaining debt (including the PPI premium) was then just under £1,650

(ie around £100 less than the PPI)



I haven't paid anything since 2010 (at the point of writing all of this would become statute barred anyway in 53 weeks' time).


I have received a letter from Arrow Global who say I owe £1,650 and they want the money, etc, etc, etc.


I am pretty sure from what I read way back in 2010 that where someone like me borrows a sum of money

(in this case £10,000) and then another amount of money for an associated financial product

(in this case, the PPI for - £1750) then they need 2 separate credit agreements;

one for the ten grand, the other for the PPI.



The thing is, I can't find the references to the legislation.



For clarity, I signed just 1 agreement for a total of £11,750

but that mentions incorporating PPI in the total.


Can someone (should I be right in recalling this, of course)

please explain for me what piece(s) of legislation support me in my belief that this is unenforceable.

ie that I should have had 2 agreements

- one for £10,000 and the other for £1,750.



I want them for my own peace of mind and to perhaps put in a letter telling Arrow Global to go away outlining why.


Thanks for any help anyone can offer

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You are referring to multiple agreements under s18 cca1974


An example would be HP plus PPI which would need two separate signatures and agreements (s79 plus s77)


Yours all falls under s77 so is one agreement


I would send a cca request under s77 to arrow and start a PPI reclaim







Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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  • 3 weeks later...

I had Cabots over an Egg agreement like this,

in my case the single premium PPI was included in the total of the loan agreement,

we argued that it should have had its own agreement.


The agreement they sent was was a multiple agreement,

the cash loan was unrestricted use credit within Section 1

1 and the policy loan was restricted use credit under S.11 (1



) the cash loan was a debtor-creditor agreement within S 13 ©.

and the policy loan was a debtor-creditor-supplier agreement under s.12,



the policy had a linked transaction under S. 19. and was a unitary agreement within S.18 (1) (b)

and a unitary multipart agreement within S 18 (3) being one agreement with two disparate categories of credit within it.


We got them on this,

the misselling of the PPI (as kindly confirmed by egg),

the fact that they couldn't explain their numbers correctly,

they had redacted their Deed of assignment for "commercial reasons",

so effectively couldn't rely on what couldn't be read. but they tried to bluff right to the end.


Also if and when you send a SAR, you should ask for and expect the terms and conditions of the PPI agreement,

which they are obliged to furnish as it's stated on the agreement


Cabots eventually discontinued My thread covering this can be found here: http://www.consumeractiongroup.co.uk/forum/showthread.php?225933

if you look at post #23 there is a copy of the agreement they sent to me

Edited by spamheed
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Hope this helps



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Please note: i am not a qualified lawyer, any advice is offered in good faith and is based on my own and others experiences and a penchant for research and a desire to help others to empower themselves


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Hi Spamhead, Thank you for your post - really helpful and it seems to fit in with what I remember from 2010

when this first went to sleep.


Right now I am in the throes of moving home (some time next week).



I have found a couple of letters from 2010 and indeed one recently telling me that the PPI is nothing to do with Arrow

so I still owe them the money, yada, yada, yada

- so the bit on those threads about the OBLIGATIONS as well as the rights from any assignment comes in to this

.... Trouble is, all the letters are now in a box ready for me to move home.


There are 48 weeks before this thing would become statute barred.



Should I write back to Arrow to tell them I am moving and where to

or leave this be to see whether they continue to pursue me?



Can anyone advise?


And I will post the letters (meaning scan and paste here (redacted in places of course) - probably in around 4 weeks' time once our move is over and we get ourselves unboxed.

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whether you owe this money or not

you need to tell the debt owner your new address. cca request time? will do both?


as for the multiple agreement debacle.


it was debated to death many years ago here

and at the end of the day cases like rankines and the other silly people that tried all these loopholes to try and circumvent the cca killed the wayout really

I'd pers reclaim the ppi from the oc


sar time first we think.



please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Before you get carried away by multiple agreements


I suggest you read Francis Bennion author of CCA1974 explanation of s18 multiple agreements







Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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