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    • Brodiebobs
    • By Brodiebobs 11th Aug 16, 9:39 PM
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    Brodiebobs
    Partial settlement/benefits advice
    • #1
    • 11th Aug 16, 9:39 PM
    Partial settlement/benefits advice 11th Aug 16 at 9:39 PM
    I'm helping a family member who took a secured loan in 2004, they haven't made payments since 2013 and the company are pushing for a court appearance, just over £17,000 o/s including their ridiculous £50pm default as well as numerous other charges. The original loan was £15,000.

    After speaking to a debt charity equity release was suggested as best option, during the application its come out the person wasn't claiming their state pension, they thought they had 'opted out' and weren't entitled but its looking like this wasn't the case. An application has gone in for pension and the debt charity have advised HMRC may offer a lump sum, which in turn could be offered to the company and equity release avoided.

    Quick calculations have lead us to believe it will be around £10,000.

    1)should we tell the debtor this is potentially happening (they have asked for proof of the equity release, although it was started we've asked them to hold fire until we hear about the pension)
    2) are they likely to accept this lower amount, potentially want to offer less as there are other unsecured debts?
    3)will the lump sum need to be declared and affect other benefits (has custody of a minor who they claim child benefit & tax credits for)
    4) They also I believe would have a case for missold PPI, it was paid bundled in with the loan & when they could no longer afford the repayments tried to claim, but were told they could only do this by confirming they were claiming JSA, they weren't working and claiming income support when the loan was taken out. Should we deal with separately or as part of the negotiations for settlement?
    Last edited by Brodiebobs; 11-08-2016 at 9:42 PM. Reason: adding additional info i missed!
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Page 2
    • fatbelly
    • By fatbelly 17th Aug 16, 2:01 PM
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    fatbelly
    Yes, this is sounding odd now (I think there's another thread like this knocking around) - definitely get a copy of the original agreement (CCA request WOULD work OK) and get someone who knows their stuff to look at it.
    • Brodiebobs
    • By Brodiebobs 17th Aug 16, 8:58 PM
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    Brodiebobs
    Really? link?

    it also would explain why they havent ever too it any further in 4 years.
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • fatbelly
    • By fatbelly 18th Aug 16, 8:33 AM
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    fatbelly
    This one

    http://forums.moneysavingexpert.com/showthread.php?t=5509291
    • Brodiebobs
    • By Brodiebobs 19th Aug 16, 11:50 AM
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    Brodiebobs
    Thanks very interesting.
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    • Brodiebobs
    • By Brodiebobs 23rd Aug 16, 12:48 PM
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    Brodiebobs
    lender has left me a voicemail today advising the original agreement and current position has been posted today to the family member...


    So definitely not 'mis-placed' once I have a look I'll let you know what it contains.
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    • Brodiebobs
    • By Brodiebobs 23rd Aug 16, 10:04 PM
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    Brodiebobs
    So crossed wires, it came in today's post.

    The agreement they sent is purely the page that was signed, which shows the amount, term, and insurance premium & monthly installments. Is this all they need to supply or should be the full application?

    Only thing I spotted was the family member has signed but not dated it, but the person who sold it to them has signed & dated it.

    I have asked the debt charity were using to arrange the equity release to take a look but they said a signed agreement is a signed agreement, best to ignore this option and push on with the equity release as we've now been told by HMRC there will be no lump sum.
    Last edited by Brodiebobs; 23-08-2016 at 10:07 PM. Reason: spelling!
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    • Brodiebobs
    • By Brodiebobs 1st Sep 16, 8:51 PM
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    Brodiebobs
    So the pension is a no-go so ploughing on with the equity release...

    Is it worth putting in a PPI claim or waiting until in a position to offer a settlement then negotiate it then?
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    • Brodiebobs
    • By Brodiebobs 6th Sep 16, 5:49 PM
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    Brodiebobs
    The equity release application is now ongoing, we've enquired about PPI and the loan company have suddenly got very jumpy. They've provided the loan brokers details as they set up the loan so they've said the mis-selling should go against them. And have now given us 14 days to provide proof of the equity release figure they're offering.

    Bearing in mind we haven't even done a full application yet, let alone had a valuation done this isn't going to happen!!

    I have however spoken to the broker who has advised that because the loan was taken out pre-2005 they will automatically decline any reclaim action we take. Is this correct?
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • sourcrates
    • By sourcrates 6th Sep 16, 11:24 PM
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    sourcrates

    I have however spoken to the broker who has advised that because the loan was taken out pre-2005 they will automatically decline any reclaim action we take. Is this correct?
    Originally posted by Brodiebobs
    No it is not.

    As long as paperwork exists, you can re-claim.

    Are there any PPI details on the agreement they sent you ?

    If they decline your complaint you take it straight to the FOS.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Brodiebobs
    • By Brodiebobs 7th Sep 16, 12:08 PM
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    Brodiebobs
    the loan company sent a form which shows the insurance premium along with the loan but no application details.

    Would we need to do another request to the broker?
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    Overpaying mortgage for a better debt free life!
    • sourcrates
    • By sourcrates 7th Sep 16, 12:38 PM
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    sourcrates
    the loan company sent a form which shows the insurance premium along with the loan but no application details.

    Would we need to do another request to the broker?
    Originally posted by Brodiebobs
    It should of been provided along with the loan agreement.

    So it sounds like your CCA request was not compliant after all.

    I doubt they will have any more documents to be honest, I would get your PPI complaint sent, include a copy of the document they sent you, mention the rest of the information is missing, see how they respond, be prepared to take it further.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • Brodiebobs
    • By Brodiebobs 7th Sep 16, 4:33 PM
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    Brodiebobs
    Thanks i'll do that.
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • Brodiebobs
    • By Brodiebobs 11th Oct 16, 1:13 PM
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    Brodiebobs
    PPI declined as pre-2005 as they suggested they would but have gone to FCA.


    Equity release still ongoing, but the loan company sent a 'pre-legal' action letter last week saying they will pass to solicitors if they don't see a copy of the plan recommendation and valuation of the house within 14 days.


    We're not at this stage yet, still awaiting a reply from the application but do we have to give this them once received?
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • Brodiebobs
    • By Brodiebobs 15th Nov 16, 7:48 PM
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    Brodiebobs
    PPi reclaim also declined by the ombudsman as pre-2005.

    The equity release is now in full swing, but annoyingly the solicitor has requested a settlement figure from the lender which arrived last week.

    While this process has been ongoing they have been applying £75 per month non-payment fee's and have now applied a £3,500 'early settlement' fee.

    The outstanding balance at the time of equity release is the amount they've borrowed but the solicitor has said there's nothing we can do?

    Any advice?
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • -taff
    • By -taff 15th Nov 16, 9:19 PM
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    -taff
    tell me more about the PPI. Who sold it, when and what was it for? If the company no longer exists it's possible you could use the FSCS, or go after the underwriter. No guarantees, but as above, more info needed.
    • sourcrates
    • By sourcrates 15th Nov 16, 10:32 PM
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    sourcrates
    I've successfully reclaimed PPI from 1993.

    So your post confuses me a bit ?

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • -taff
    • By -taff 16th Nov 16, 12:25 AM
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    -taff
    It depends on who sold it to you. Some companies weren't regulated prior to 2005, some prior to 2003, brokers not before 2005, car finance not before 2005, catalogues not before 2005....
    Banks were signed up to the GISC code prior to to the FSA so you can complain to them, and they basically act as if they have always been regulated. Building societies weren't signed up for this so also may or may not act as if they were always regulated.
    It all depends on who sold it, when they sold it and what it was for e.g. loan, credit card, etc...
    • -taff
    • By -taff 16th Nov 16, 12:43 AM
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    -taff
    Then there's also the question of the underwriters of pre 2005 sales and whether they can be found to have had a direct realtionship with the seller.

    Complaining to a bank is quite straightforward, if it's anything else, it can be a bit tricky...especially since a lot of people think you are reclaiming PPI and automatically entitled to it. You don't and you're not. You make a complaint that it was missold. If your complaint stands up, you get it back, if it doesn't, you don't.
    • Brodiebobs
    • By Brodiebobs 16th Nov 16, 8:24 PM
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    Brodiebobs
    Its was a broker who sold the loan and the insurance separately, but all the products and the broker were part of a bigger group of companies.

    Very incestuous!

    We have complained to ombudsman they said "we cant consider the complaint because the PPI policy was sold before 14/01/2005-the date when all businesses selling insurance became regulated" they go on to say there are certain circumstances like where a bank or building society... but obviously its not.

    To be honest its not the most important thing now, were more concerned about the £4k plus shortfall which is going to be left...
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • -taff
    • By -taff 17th Nov 16, 3:46 AM
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    -taff
    If the company are no longer in business, complain to the FSCS.
    Sounds like they are though, so find out who the underwriters were and complain to them.
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