Bought PPI which wasn't put in place

widgie1

Hi there,
We took a loan out with our bank a while back and signed the forms for PPI which was put in place. The loan ticked away nicely and we didn't make any claim regarding the PPI. However in 2008 we decided to increase this loan for a further 3 years and had to fill in the forms again for the additional PPI, which we did.
In early 2009 my husband's work dried up suddenly and completely, he was a builder and all of a sudden we found ourselves without any income and contacted the bank, expecting the PPI to come into its own. The bank told us that they had no evidence that we had taken the PPI out for this loan which was to run until 2011 and we then realized we hadn't paid any premiums for it either. So PANIC - but we did find copies of the paperwork that the bank had sent to us to sign so we knew we had requested it. And my husband wouldn't have agreed to the loan without any protection in place anyway. The bank looked into it and admitted it was their fault that it hadn't be activated and they started to pay the loan for us. But it hasn't been running smoothly at all - the bank no longer operate the PPI system they had when we took the loan out and although they pay it we have had to ring them up to sort it out almost every month since then. They have been very good about it and have repaid bank charges when the loan has come out of our account and they haven't paid it back in - it has involved a lot of calls but basically the department in question have bent over backwards to help us.But it has been very stressful all round in one way or another including getting hold of the right person in the right department to put this right every month when other departments are contacting us insisting we must pay it and are happily telling us the consequences of non payment....!

In August we will begin paying the remainder of the loan ourselves again as the bank have decided that now my husband is working again August is a reasonable time to hand the payment of the loan back over to us, there has been no cut and dried rule about anything during this whole thing really as there is no PPI governing the proceedings but my question is, and I have wondered this for a long time now, since we requested PPI for the loan and the bank have admitted it was their fault that it wasn't put in place, is the loan valid anyway? My husband would not have agreed to the loan if their wasn't anything in place to protect us.

~Brock~

Have you been actually paying for any PPI?

widgie1

No, it was only when we came to claim that we realized that we hadn't paid any instalments as the bank hadn't put the PPI in place - we had the paperwork to prove that we'd applied for it and the bank found out at their end that it had been completely overlooked and forgotten about, and that nobody had set it up.

widgie1

Sorry I should have said in the title that we took out PPI rather than actually bought it.

somethingcorporate

My thinking is this isn't grounds for writing off the loan, which I assume is what you are asking. You've enjoyed the benefit of it and been fortunate enough for the bank to agree the free PPI (I assume they didn't ask for the premiums for the months you hadn't paid for it?).

I would have thought that they would have been perfectly within their right to recalculate the loan for all the missed premiums for PPI or refuse to pay out.

If it were me I'd just move on, this bank has been inefficient, yet quite helpful, so you should count yourself relatively lucky!!

~Brock~

somethingcorporate wrote: »

My thinking is this isn't grounds for writing off the loan, which I assume is what you are asking. You've enjoyed the benefit of it and been fortunate enough for the bank to agree the free PPI (I assume they didn't ask for the premiums for the months you hadn't paid for it?).

I would have thought that they would have been perfectly within their right to recalculate the loan for all the missed premiums for PPI or refuse to pay out.

If it were me I'd just move on, this bank has been inefficient, yet quite helpful, so you should count yourself relatively lucky!!

:T

My thoughts exactly, although it does make a refreshing change from the usual situation where people whinge that they have been paying for PPI and they have *cough* suddenly realised that they didn't agree to it at the time.