Unenforceable Agreements

coralcove

Hi all,

I took out a bank loan a few years ago and realised last year that PPI had been added without my knowledge. Bank have now offered partial refund, stating that I must have been aware of the PPI and details at point of sale.
They sent me a copy signed pre-contractual information form with this offer, which must have been the one signed in bank on day of taking out loan. I did not sign any other document.

The PPI was added to the loan and interest charged on whole amount.

Would this agreement be enforceable?

Rafter

If you have signed a loan agreement with PPI on then it would be enforceable. As would a PPI contract. However pre-contractual information is not the same thing?

Suggest you ask for a copy of your loan and PPI agreement - if it is on there then you can't really claim that you didn't read what you were signing.


R.

Mark_Davis

coralcove wrote: »

Hi all,

I took out a bank loan a few years ago and realised last year that PPI had been added without my knowledge. Bank have now offered partial refund, stating that I must have been aware of the PPI and details at point of sale.
They sent me a copy signed pre-contractual information form with this offer, which must have been the one signed in bank on day of taking out loan. I did not sign any other document.

The PPI was added to the loan and interest charged on whole amount.

Would this agreement be enforceable?

Were you pressured into taking the PPI.

How long was the loan for

Were you employed at the time

coralcove

No mention was made of PPI - I never take out insurance unless mandatory and certainly wouldn't consider paying over £2K for a £7K loan.

Loan was for 60 months. I was self employed and would not have been covered by the PPI T&C's.

orangetrader

I would get the credit agreement checked to see if the correct rules have been applied.
Different CCA rules apply if the PPI was not “truly optional”. It sounds like this may apply to your loan in which case you should for example check if the PPI has been factored into the APR. Also see
http://forums.moneysavingexpert.com/showthread.html?p=19540523&highlight=torston#post19540523

coralcove

Many thanks.

orangetrader

no problem. Just to add to that, 1) your credit agreement may be unenforceable and 2) you have grounds for reclaiming mis-sold PPI. Take care though that you don’t deal with these issues in isolation. By that I mean, if the lender offers to refund PPI, they may wish to rewrite the loan agreement. If this happens you will not be able to challenge the previous/current loan agreement. Get the agreement checked for enforceability first and if it is unenforceable, run a case in parallel to tackle both of these issues.:beer:

petermb_2

coralcove wrote: »

Hi all,

I took out a bank loan a few years ago and realised last year that PPI had been added without my knowledge. Bank have now offered partial refund, stating that I must have been aware of the PPI and details at point of sale.
They sent me a copy signed pre-contractual information form with this offer, which must have been the one signed in bank on day of taking out loan. I did not sign any other document.

The PPI was added to the loan and interest charged on whole amount.

Would this agreement be enforceable?

There sounds a couple of issues here that could be challenged quite easily. The PPI can be recovered plus interest. The loan may be challengeable but that is no certainty.

Robert_Sterling

Good luck. You appear to have a genuine case.

coralcove

orangetrader wrote: »

no problem. Just to add to that, 1) your credit agreement may be unenforceable and 2) you have grounds for reclaiming mis-sold PPI. Take care though that you don’t deal with these issues in isolation. By that I mean, if the lender offers to refund PPI, they may wish to rewrite the loan agreement. If this happens you will not be able to challenge the previous/current loan agreement. Get the agreement checked for enforceability first and if it is unenforceable, run a case in parallel to tackle both of these issues.:beer:

Thanks for advice orangetrader.