PPI Reclaim and Financial Hardship

kimlyn_2

Hi everyone,

I would just like a bit of advice before I contact the Halifax.

I am reclaiming PPI on 2 loans which were both taken out in 2005.
We were offered PPI and accepted but when we found out that it was only my husband that was covered and he was diabetic, I decide to try to cancel the insurance. When I phoned Halifax I was told that we would have to pay back all money and re-apply for the loans without insurance. Needless to say we couldn't so kept the insurance.
Late 2006 we had a change in circumstances and went on a DMP with CCCS, we are still on a DMP but we arrange things direct with our creditors to insure that they are paid on time.

I contacted Halifax in August requesting a reclaim and had a letter last week saying that they are going to repay the PPI,

" I have decided to pay you an amount that will put you back in the position you would have been in had you not taken the insurance"

The letter also stated that any redress offered would be taken to cover any arrears on the accounts.
Both of the loan accounts were sold on to CL Finance Ltd in December 2008, so no longer owned by Halifax, does this mean that the redress will be paid to CL Finance now or can it be paid direct to us?

I have read a previous post that says that the FOA (help on this, don't know who they mean), has a view that if you are in financial hardship any monies due from a reclaim can be paid direct to the customer as he/she may have more important bills to pay.

Halifax have not stated how much my reclaim will be but I have a feeling that they will no where near cover the arrears on either accounts.
The basic charge for the PPI was £2641.13 for one loan and £6243.27 for the other, this does not include the credit charge for the insurance which was £803.47 for the first and £2362.53 for the second.

We are managing at the moment but it would be nice if we could get the money paid directly to us and then we could arrange to get some F&F settlements and clear some of our smaller debts.

Do you think I should phone the Halifax and ask or will they just pay directly to CL Finance?

di3004

kimlyn wrote: »

Hi everyone,

I would just like a bit of advice before I contact the Halifax.

I am reclaiming PPI on 2 loans which were both taken out in 2005.
We were offered PPI and accepted but when we found out that it was only my husband that was covered and he was diabetic, I decide to try to cancel the insurance. When I phoned Halifax I was told that we would have to pay back all money and re-apply for the loans without insurance. Needless to say we couldn't so kept the insurance.
Late 2006 we had a change in circumstances and went on a DMP with CCCS, we are still on a DMP but we arrange things direct with our creditors to insure that they are paid on time.

I contacted Halifax in August requesting a reclaim and had a letter last week saying that they are going to repay the PPI,

" I have decided to pay you an amount that will put you back in the position you would have been in had you not taken the insurance"

The letter also stated that any redress offered would be taken to cover any arrears on the accounts.
Both of the loan accounts were sold on to CL Finance Ltd in December 2008, so no longer owned by Halifax, does this mean that the redress will be paid to CL Finance now or can it be paid direct to us?

I have read a previous post that says that the FOA (help on this, don't know who they mean), has a view that if you are in financial hardship any monies due from a reclaim can be paid direct to the customer as he/she may have more important bills to pay.

Halifax have not stated how much my reclaim will be but I have a feeling that they will no where near cover the arrears on either accounts.
The basic charge for the PPI was £2641.13 for one loan and £6243.27 for the other, this does not include the credit charge for the insurance which was £803.47 for the first and £2362.53 for the second.

We are managing at the moment but it would be nice if we could get the money paid directly to us and then we could arrange to get some F&F settlements and clear some of our smaller debts.

Do you think I should phone the Halifax and ask or will they just pay directly to CL Finance?

Hi there

And yes give them a call, see what they say on this for you.

Well done on this anyway and hope things work out well for you in the end.

Let us know how you get on, good luck.;)

kimlyn_2

If Halifax no longer own the loan I can't see how it's in their interest to pay the redress to CL Finance.

What do you think?

melorablack

kimlyn wrote: »

If Halifax no longer own the loan I can't see how it's in their interest to pay the redress to CL Finance.

What do you think?

it's not in their interest but you still owe the money. CL Finance paid Halifax the amount outstanding and so "bought" the loan off Halifax. The outstanding amount is now less because of the refund of the PPI so the Halifax have to "refund" CL Finance the difference between what the outstanding amount was and what it should be.

kimlyn_2

I have contacted the Halifax today and asked if the redress could be paid directly to us because of our situation and the fact that Halifax no longer owned the debt.

I was told that it was not standard practice to do this, but because of our situation my request may be considered, but I may need to prove that we are in the situation we say we are.

I was a bit unhappy because in the letter it states that the redress will be repaid within one month, but on the phone today I was told that if I don't have any contact from them within the month to arrange payment, to contact them. I thought this was going to be quick and easy.

Has anyone else had any dealings with Halifax and are in the same situation as us?

kimlyn_2

Hi everyone just a quick update.

I had a letter today from the Halifax telling me how much they are going to refund. However, it does not say anything about my request to pay the redress direct to me, it says that as the debt has been sold on to a 3rd party, they are going to contact them and tell them to 'amend their records'.

What do I do now ? I was told that it had been put on my records that I had requested a direct refund but the letter says nothing about this.

di3004

kimlyn wrote: »

Hi everyone just a quick update.

I had a letter today from the Halifax telling me how much they are going to refund. However, it does not say anything about my request to pay the redress direct to me, it says that as the debt has been sold on to a 3rd party, they are going to contact them and tell them to 'amend their records'.

What do I do now ? I was told that it had been put on my records that I had requested a direct refund but the letter says nothing about this.

Hi there

You have the right to see the figures, I would write to request they send you a full detailed written breakdown on this, just to make sure nothing is amiss.
I think this is just procedure to them, if arrears/debt they refund towards that, but I'm sure someone who have been in the same situation as yourself will post up with the information you require on this.

Good luck and please let us know how you get on.;)

kimlyn_2

They have sent me all the correct figures and I agree. They have just not mentioned that I have requested that the redress is paid directly to me.

Do I have a right to request this, considering the debt has been sold to a 3rd company and we are in financial hardship?

di3004

kimlyn wrote: »

They have sent me all the correct figures and I agree. They have just not mentioned that I have requested that the redress is paid directly to me.

Do I have a right to request this, considering the debt has been sold to a 3rd company and we are in financial hardship?

There is no harm in asking, then of course if you not happy with the way this have been dealt with you can always complain to the FOS, like any other complaint.
Good luck.;)