PPI refunded - is loan unenforcable ?

RoyalBlues

This is the simplified version...................

I took out a loan

I could only have the loan if I agreed to PPI

I became unemployed

I made a claim

PPI providers refused to pay

BOTH loan providers and PPI providers refused to give me with ANY reason as to why my claim was refused

My loan provider contacted me regarding the arrears etc.

I told my loan provider that EITHER (1) the arrears were their fault for mis-selling me the PPI or (2) that it was the fault of the PPIs providers for not paying out as agreed

This was done verbally and in passing during one of many 'credit control' phone calls regarding the "arrears"

...................today, unexpectedly, I receive a letter from my loan provider stating that they are prepared to refund in total my PPI (plus 8% interest) but I am now in arrears with the loan (approx 12 months).

Problem is..................the 'arrears' have solely accrued because of the ongoing dispute with the PPI providers who have refused to pay out for no good reason.

Question is (bearing the above in mind).....................does the admission of mis-selling PPI by the loan provider in itself render the loan unenforcable???

sorry for the length of this posting...................but it is really important to me. It's a £6k+ outstanding balance!

Any informative advise ?

Fonz_2

Surely the arrears have happened due to you not paying the loan - you should have continued to make payments whilst disputing the PPI.

oscar52

Fonz wrote: »

Surely the arrears have happened due to you not paying the loan - you should have continued to make payments whilst disputing the PPI.

Did you miss the part where OP stated they became UNEMPLOYED?

RoyalBlues

unemployed = no income = no loan repayments made

the point is.............the "arrears" only occurred whilst I was unemployed (during which time the PPI was supposed to be meeting the payments on my behalf)

with the greatest of respect..................i think you missed the main point of my posting

Xbigman

You need to pursue the reason why they did not pay out on the insurance before doing anything else. This looks like it is more valuable to you than getting the PPI back.
Had you only been employed in your job a short time, or were you at risk of redundancy before you took out the PPI, possibly you were self employed or employed on a contract basis. There should be a good reason for non payment and the insurer should have informed you why. You should also have had the opportunity to appeal the non payment decision. Just a thought, but did you claim through the loan company or direct to the insurer? You should have done the latter.

Definately contact the insurance company and complain. You were insured so they should pay. In the event you were not eligable for insurance that is 100% miss selling and you at least get your money back.
Regards




X

mptorrance

I am sure some people would say that your loan is unenforceable...they will also be the sort of people that chase ambulances. You may have a case because there was something in the press about a similar thing where a loan was deemed unenforceable because of the PPI misselling thing but I wouldn't bother.
I know you may be desperate but because the PPI was missold doesn't mean you don't have obligations to repay your debts, even if you are unemployed.