Old Loans with a DCA - Can I reclaim PPI?

taffam

Hi All

I took out a loan in about 2002/3 with CitiFinancial.

A bit like Welcome finance operated, I was told I basically couldn't have the loan without PPI so as I was desperate I agreed. So on top of their ridiculous interest charges, I was paying PPI.

Anyway, I defaulted on the loan a year later and it was sent to Direct Legal Collections who didn't take any payments for 3 years!

So eventually they contacted me and my balance was almost triple what I borrowed (I think I borrowed around 1200).

I've been paying 65 a month for 2 years now, and now they want to up it to 130 a month, but my balance is still over 2000.

I believe they are making me pay back all the interest and PPI - can they do this or can I dispute it even though a Debt Collection Agency are dealing with it and not an actual financial institution?? I also seriously doubt they have a copy of my CCA.

Any advice would be great!!

di3004

taffam wrote: »

Hi All

I took out a loan in about 2002/3 with CitiFinancial.

A bit like Welcome finance operated, I was told I basically couldn't have the loan without PPI so as I was desperate I agreed. So on top of their ridiculous interest charges, I was paying PPI.

Anyway, I defaulted on the loan a year later and it was sent to Direct Legal Collections who didn't take any payments for 3 years!

So eventually they contacted me and my balance was almost triple what I borrowed (I think I borrowed around 1200).

I've been paying 65 a month for 2 years now, and now they want to up it to 130 a month, but my balance is still over 2000.

I believe they are making me pay back all the interest and PPI - can they do this or can I dispute it even though a Debt Collection Agency are dealing with it and not an actual financial institution?? I also seriously doubt they have a copy of my CCA.

Any advice would be great!!

Hi there

And yes you can still reclaim.
If they stated you had to have this as a condition of the loan then you have good reason to try to reclaim.
It does not matter if this was moved on to a DCA.

If this was purchased over the last few years, they may still have hold of your agreement, I would therefore request for this by enclosing a £1 postal order or cheque payment, and ask they send by 12 days of you requesting for this copy, if they cannot do this then they should return your payment with a letter to explain why they cannot do this.

If you do require further details/info on your account, then you may have to think about requesting for a Subject Access Request (SAR), as you already be aware for this request, your enclose £10 cheque or postal order payment, and they have 40 days to comply.
SAR letter template here:
http://forums.moneysavingexpert.com/showthread.html?t=1475553

More on reclaiming on link below, you write to the ones who set this up for you.
Check this link out below, if you require any help from there give us a yell, good luck.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

However, I am not sure about if they should still be charging you the PPI or not so maybe this question you could ask if you have not done so yet on the debtfreewannabe thread here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=76
Many others have been in the same position as you on this matter, so worth checking on that thread, or even posting up.

Good luck, please keep us posted and yell for help whenever you require this.

Di