will YB close my account if i claim back PPI?

wozyh

Hi,

I'm pondering whether to claim back the PPI on a bank loan I had just short of 6 years ago.

I cant remember if the loan was for £4000 or £5000 (i've since disposed of the paperwork).

What's stopping me from going ahead with the claim is that I'm a student, I still bank with YB, and I have an overdraft with them for £525 (which I am right into the bottom of at the moment). I don't have a job and my only income throughout the year is from my student loan.

I'm worried that if my claim for PPI is successful then YB could close my account, use the funds to either fully or partially pay off my overdraft; and if it's only a partial pay off they could turn the outstanding amount into some sort of debt (something like a credit card balance).

Obviously I don't want to be left in a pickle.

So I guess what I would like to know is if anybody has had any experience of having there accounts closed upon a successful claim.

Also, is it worth giving a company such as Gladstone & Brookes the oppurtunity to claim back the money due to the fact there a "professional company" with perhaps more muscle, clout and tricks up there sleeve as opposed to a citizen such as myself. Or to put it another way do you think they stand more chance of success than me?

Thank you.

Warren

di3004

wozyh wrote: »

Hi,

I'm pondering whether to claim back the PPI on a bank loan I had just short of 6 years ago.

I cant remember if the loan was for £4000 or £5000 (i've since disposed of the paperwork).

What's stopping me from going ahead with the claim is that I'm a student, I still bank with YB, and I have an overdraft with them for £525 (which I am right into the bottom of at the moment). I don't have a job and my only income throughout the year is from my student loan.

I'm worried that if my claim for PPI is successful then YB could close my account, use the funds to either fully or partially pay off my overdraft; and if it's only a partial pay off they could turn the outstanding amount into some sort of debt (something like a credit card balance).

Obviously I don't want to be left in a pickle.

So I guess what I would like to know is if anybody has had any experience of having there accounts closed upon a successful claim.

Also, is it worth giving a company such as Gladstone & Brookes the oppurtunity to claim back the money due to the fact there a "professional company" with perhaps more muscle, clout and tricks up there sleeve as opposed to a citizen such as myself. Or to put it another way do you think they stand more chance of success than me?

Thank you.

Warren

Hi Warren and welcome

First of all do not use a claims company, many on here have had hassle after hassle still waiting 2 years or so down the line.

You can do this yourself with free help from this site, by just completing the FOS questionnaire, these questionnaires were recently issued by the financial ombudsman service (FOS) and in replacement of the first template reclaim letter, you will find this on the link below further down the page as stage one:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Complete and send to YB, and keep a copy for yourself as well, this is recommended by the FOS, they have 8 weeks in full to respond.

I have not actually come across posts of when they close the accounts.
They must treat you fairly and follow the lenders code, if they did not then you report them to the Office of fair trading (OFT), but its unlikely it will happen.
And besides your only reclaiming what is rightfully yours.

Hope this helps, and ask for any help if required, this is all free.;)
Good luck.

wozyh

Thank you Di.

So let me get this straight; I only need to fill in the FOS questionaire, post it to YB, and keep a copy for myself?

Once this is done I just need to wait for YB to reply before commencing any further?

There's just two other things which I need to mention.

1. I signed up for the loan around October/November 2004 (which is obviously very close to 6 years ago). By the time my claim is up and running the 6 year time limit could be exceeded. Do you think this will dissolve my claim?

2. I don't have any paperwork whatsoever leftover from the loan. I think I'm going to have to contact YB and get the policy number. I'm going to try to do this by phone; hopefully YB will be cooperative and it won't slow down my claim too much.

Thanks again.

Warren

di3004

wozyh wrote: »

Thank you Di.

Your very welcome Warren.
So let me get this straight; I only need to fill in the FOS questionaire, post it to YB, and keep a copy for myself?
Yes that is correct.

Once this is done I just need to wait for YB to reply before commencing any further?
Yes, they have 8 weeks in full to respond, sometimes they request for extra time, which is fine, but if this was ignored after the 8 weeks have passed, your in your right to complain to the Financial ombudsman service, if you do then you fill in a FOS complaints form, and enclose a copy of the completed questionnaire that you originally completed to the bank.

There's just two other things which I need to mention.

1. I signed up for the loan around October/November 2004 (which is obviously very close to 6 years ago). By the time my claim is up and running the 6 year time limit could be exceeded. Do you think this will dissolve my claim?
It should be fine, and many have made successful reclaims even from earlier years, and it makes no difference if the account is still active or settled.

2. I don't have any paperwork whatsoever leftover from the loan. I think I'm going to have to contact YB and get the policy number. I'm going to try to do this by phone; hopefully YB will be cooperative and it won't slow down my claim too much.
You can try tracking down loan account numbers by checking old bank statements - these are normally shown next to the loan monthly repayments, if you bank online and still with the same bank you had your payments taken out of, then this should allow you to go back about 7 years or so.

By just having the account number you can still continue to make a reclaim.

Thanks again.

Warren

Hope this have helped and any further info required, please just yell.;)

wozyh

Cheers.

If I have any niggles i'll pop up again.

Thanks again

di3004

wozyh wrote: »

Cheers.

If I have any niggles i'll pop up again.

Thanks again

Your welcome and yes please do, good luck.:D;)

wozyh

Me again.

A few things have come to mind about my claim and I'm now wandering whether there's any point going ahead with it.

I remember when I was originally sold the loan I was shown payback amounts for both with and without PPI insurance.

I remember actually been given a clear option to have the loan without PPI but opted for it with.

I was told that PPI would cover illness and redundancy so I opted to take it out just for peace of mind.

The sales assistant didn't fool me or pressurise me into having the loan with PPI; she showed me a print out of loan calculations with, and without insurance, and told me what i'd get if I had it and what I wouldn't get if I didn't.

So I don't neccessarily think it was miss-sold to me.

However, about 2 years after I began paying back the monthly repayments I resigned from my job due to stress (bearing in mind the loan was for 4 years). My doctor knew about this and I was also seeing a councillor at work. It's a long story but I have some hearing difficulties and it was all a bit too much for me working in a hostel for people with serious mental health difficulties.

However, I chose to leave the job voluntarily because of the strain it was putting on my life. I wasn't forced to leave and technically I could of carried on working there, but didn't as I wanted my quality of life back. Believe you me I din't just walk away on a whim, I tried long and hard to make it work.

When I quit, i left without finding another job and was unemployed for about 6 months. I was going to try to activate the PPI to cover the loan repayments but didn't bother as I realistically didn't think I stood a chance of getting it (because I left of my own accord albeit in difficult circumstances).

So I guess my points of this post are:

I dont think the PPI was miss-sold to me in the bank in the first place. I was clearly given the option of having the loan with and without PPI.

However, PPI didn't cover me for voluntarily leaving the job albeit in difficult circumstances due to a "disability" I have.

So, do you think there's any point in still going ahead with the claim?

I don't want to put in a disshonest claim and have to lie to get money. Im an honest person and want to stick this. And, from having dealt with liars personally I can tell you that there acting nearly always gets caught out.

Thanks in advance.

Warren

marshallka

Hi Warren, as you are honest and stating you knew the options available and that you left your job of your own accord then I would say that the PPI was usable but only for the circumstances in the terms and conditons.

This usually would not cover you for stress (most do not) unless you are seeing an actual doctor (ie Psychiatrist or psychologist and you would know they are very different to a councillor by working in mental health yourself) so probably would not have paid out anyway. I would not really know what you could claim for as it was definately not missold to you if you knew the cost with and without the PPI and you were given options too and the terms and conditions actually made it clear that for stress you would not be able to claim. Its just unfortunate for you that you did not get the benefit of this policy. In all honesty and going by what you have written above I would say maybe to give up on reclaiming.

Perhaps others may be along to give their views also. Sorry to be so negative but unless there is another reason you can come up with then I doubt it would win.

Hope you are feeling better though now.

wozyh

Hi mate,

Yes you are right. There's not much point going ahead with the claim if I know the PPI wasn't miss-sold to me.

I know on the Gladstone & Brookes advert they say you can claim if you didn't need the PPI. But obviously I guess that means if you didnt need it say if you were self employed (because it doesn't cover that). Not if you actually didn't need it whilst you were paying off the loan...:D

Yes I am not aware of any basis on which I can launch a claim.

I told Gladstone & Brookes the fuill story about a year ago and they still reckoned I had a good case; they sent me all the forms out etc etc for me to sign to but I ended up sticking them in a drawer as I wasn't 100% confident i had a case. I was also worried that YB may demand I pay back my overdraft if I was successful.

I think it may be time for me to drawer a line under all this and call it a day.

MRS_A_3

Were you asked if you had any other means of paying for your loan should you be ill/injured?

For example did the lady ask if you had any other policies which would pay out or if you had savings or a partner who could continue to pay ( bearing in mind this is for the day you applied for the loan and not x amount of years later)

Did she say whether the bank only sold their own products and that you could probably get cheaper cover if you shopped around?

Are you confident the lady had a solid background to be able to offer you the most apprpriate PPI cover or do you think she was just selling the product to you - even if it was subtly done?

This is all I can come up with off the top of my head.

marshallka

Yes, I agree MRS A, there could be the fact that they could have offered you a choice of buying it elsewhere and not a single premium? Don't know how that would hold up though if they gave a choice and also what the rules were 6 years ago? Did they have to tell you that you could buy elsewhere? I know that "choice" was always an option but don't know just how much they had to disclose before the rules and regs on insurance came into force in Jan 2005??????