Compensation question for PPI when bank took me to court for repossesion of my house
Handford
Posts: 2 Newbie
I have an interesting question. Back in 1995 I had a £5000 business loan taken out with Natwest and had no idea that it contained PPI (Natwest have confirmed the loan and PPI) and I was self-employed. I mention this because the PPI element may also have contributed to my getting behind with my mortgage.
The mortgage was also with Natwest and also had PPI so they now tell me (again, I was self-employed). In 2000 I got behind with my mortgage repayments to the tune of £1,000 and was taken to court by Natwest for repossession of my home. As it happens, the judge said that I sould be allowed to remain in the house as I had already made an arrangement with the bank to pay them back over time (they would not allow me to put that small extra amount on my mortgage even though I had around 50% equity, but that's by the by). The bottom line is, I had to pay them back the £1,000 at a huge strain to my family, I had to pay another £600 in court costs, and, I had the humiliation and all the stress that goes with it along with a terrible knock-on effect, both in terms of it messing the rest of my life up trying to struggle with the added costs and the negative credit ratings with that and other things trying to pay them off. Due to the court appearance and the general struggle, my marriage also disintegrated a short time after.
My question is - although Natwest have agreed that I had unwanted PPI's on these two loans, is there also some sort of compensation to be had regarding the fact that if it weren't for the PPI's, I wouldn't have had the money problems: effectively, they were taking me to court for money that, in reality, was owed to me, not them?
I also had another business loan with them that I am now investigating - it was for £15,000 and was paid off in 1993 after the sale of my business. I am not sure whether this too had PPI as they say that they can't find records for it yet but that I could send them £10 to do a 'Subject Access Request?'
Because of the incredibly harsh way I was dealt with by the bank over the repossession scenario I really feel like sticking it to them now if it is at all possible!
Any thoughts or experience in this matter would be greatly appreciated.
The mortgage was also with Natwest and also had PPI so they now tell me (again, I was self-employed). In 2000 I got behind with my mortgage repayments to the tune of £1,000 and was taken to court by Natwest for repossession of my home. As it happens, the judge said that I sould be allowed to remain in the house as I had already made an arrangement with the bank to pay them back over time (they would not allow me to put that small extra amount on my mortgage even though I had around 50% equity, but that's by the by). The bottom line is, I had to pay them back the £1,000 at a huge strain to my family, I had to pay another £600 in court costs, and, I had the humiliation and all the stress that goes with it along with a terrible knock-on effect, both in terms of it messing the rest of my life up trying to struggle with the added costs and the negative credit ratings with that and other things trying to pay them off. Due to the court appearance and the general struggle, my marriage also disintegrated a short time after.
My question is - although Natwest have agreed that I had unwanted PPI's on these two loans, is there also some sort of compensation to be had regarding the fact that if it weren't for the PPI's, I wouldn't have had the money problems: effectively, they were taking me to court for money that, in reality, was owed to me, not them?
I also had another business loan with them that I am now investigating - it was for £15,000 and was paid off in 1993 after the sale of my business. I am not sure whether this too had PPI as they say that they can't find records for it yet but that I could send them £10 to do a 'Subject Access Request?'
Because of the incredibly harsh way I was dealt with by the bank over the repossession scenario I really feel like sticking it to them now if it is at all possible!
Any thoughts or experience in this matter would be greatly appreciated.
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Comments
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You'd have a hard time proving the "fact" that simply having PPI caused you to fall behind with your mortgage payments, your marriage to fail and general financial difficulty.is there also some sort of compensation to be had regarding the fact that if it weren't for the PPI's, I wouldn't have had the money problems: effectively, they were taking me to court for money that, in reality, was owed to me, not them?
Redress for mis-sold PPI is defined by the regulator and is a full refund of all PPI paid plus 8% interest. You will receive no more.0 -
I mention this because the PPI element may also have contributed to my getting behind with my mortgage.
PPi on a £5k loan would have been a very small increase in the monthly cost. it is highly unlikely that the very small cost was instrumental in you not being able to pay your mortgage.is there also some sort of compensation to be had regarding the fact that if it weren't for the PPI's, I wouldn't have had the money problems: effectively, they were taking me to court for money that, in reality, was owed to me, not them?
Theoretically yes if you can prove that what happened would not have happened had you not had the PPI. However, that is easier said then done and you would need to have been short by less than the cost of the PPI premium each month. That is unlikely as people do not default on payments on that sort of difference.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for your replies. I guessed that may be the scenario. I suppose I was thinking along the lines that the bank may have taken a more substantial 'lump sum' in advance for the PPI element of my mortgage. However, I am still awaiting the detail on that one. At least, I will hopefully get a repayment.
As I said, although the bank says that it can't find documents to hand at the moment for my settling up the 1993 business loan (but they can for the 1995 loan?) is it normal for them to be able to find it with one of those Subject Access Requests?0 -
There are no guarantees of finding a particular record, but a SAR will provide you with everything they have kept on file for you. Clearly, the details of the older loan may have been destroyed, though.As I said, although the bank says that it can't find documents to hand at the moment for my settling up the 1993 business loan (but they can for the 1995 loan?) is it normal for them to be able to find it with one of those Subject Access Requests?0 -
I suppose I was thinking along the lines that the bank may have taken a more substantial 'lump sum' in advance for the PPI element of my mortgage.
No bank has done single premium MPPI on their mortgages. They only did monthly premium. That is one of the reasons most MPPI complaints do not succeed. They did do some single premium on some secured loans but the cost was factored into the monthly payment.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi
I’m in almost the same predicament...
My mortgage is with Nationwide & I also have a mortgage protection policy.
The policy sold was to pay my mortgage payments if I was sick or unemployed.
The main issue is that I should never have been sold the policy as I have been self-employed since leaving school & unemployment cover isn’t available to those who are self-employed (I didn’t know this until my claim was denied).
I have been unable to work since 2015 & have absolutely no other income. My current account is also with Nationwide so, they have continued to pay themselves the mortgage & other direct debits. This has led me to become overdrawn & I have then been charged for being overdrawn.
They have now been awarded a possession order for my home. I’m completely destroyed. What can I do?0 -
The main issue is that I should never have been sold the policy as I have been self-employed since leaving school & unemployment cover isn’t available to those who are self-employed (I didn’t know this until my claim was denied).
Most MPPI does cover the self-employed. However, the Nationwide product was generally low quality and the FOS have considered it to be too restrictive in a number of their decisions.
Most MPPI require the self employed to sign on just as they do with employed people.
Nationwide allso be required to produce copies of their official notification to the Inland Revenue as well as provide their closing accounts. The FOS consider that too onerous a condition.They have now been awarded a possession order for my home. I’m completely destroyed. What can I do?
A horrible situation to find yourself in but there is nothing you can do retrospectively. You could have bought a better PPI policy from a mortgage broker or IFA. However, even that would have only given you 12 months cover. If you are unable to work due to illness than had you had a permanent health insurance policy, then that would be paying out now (and goes on to the end age which is typically 65). These are all retrospective things you cannot complain about
You can complain about the sale of the Nationwide MPPI. However, there is nothing in respect of the repossession.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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