Can you reclaim PPI to ofset a debt?

skintmumof2

Hi
I took out a loan in feb 2007 as advised by my bank manager at the time to consolidate all my smaller debts and car HP as i was due a baby in the march and would be on SMP.
PPI was part of it. I did say i didnt want it, wanted my loan to be cheaper, but was advised with my situation (being pregnant and going on my maternity leave and returning to work with having a child) that it was safer to have it finanicially.

Loan was for cash price of £8200 but with 20.9% interest it was £12809.40 then £3688.80 for PPI making a total off £16,498.20!!

Needless to say my son was born, we struggled paying £247 a month with my SMP and i defaulted on the loan that same year. A payment plan of £50 was set up in 2008 which i defaulted on too.
With CABs advice i arranged token payments of £1 till my situation improved.
Fast forward to 2011 and i am still on token payments although increased to £5 and my balance is £10803.

After all that, my question is can i reclaim for the PPI? Or do you have to not know about it? Is there anyway i could complain about being mis-sold the actual loan? I was heavily pregnant and attending a finanicial review when the loan was suggested to me. If i could reclaim the PPi could it be taken off my debt? As then i would be wiping around £3000 off the debt which would be great!

Any help much appreciated.

dunstonh

After all that, my question is can i reclaim for the PPI?

If you believe it was mis-sold then yes.

Or do you have to not know about it?

Its about whether it was mis-sold to you or not. There is nothing wrong with having PPI. It is how it was sold and set up that matters.

Is there anyway i could complain about being mis-sold the actual loan?

For what reason?

If i could reclaim the PPi could it be taken off my debt?

if your complaint is successful then the money is used to clear any arrears or debt written off.

skintmumof2

dunstonh wrote: »

If you believe it was mis-sold then yes.

Its about whether it was mis-sold to you or not. There is nothing wrong with having PPI. It is how it was sold and set up that matters.



For what reason?



if your complaint is successful then the money is used to clear any arrears or debt written off.

I dont know about missold as i was told i needed it
For what reason?
To try and get part of the debt written off

dunstonh

I dont know about missold as i was told i needed it

Nothing wrong with being told you need it. If you have a financial need then its good advice. However, if you were not told it was optional then that is wrong.

For what reason?
To try and get part of the debt written off

That is not a justifiable complaint reason.

smitchy73

Looks to me it was fairly obvious you were pregnant and it also sounds like the bank manager was saying you'd be able to claim on it whilst off on maternity leave, even though that seems to be a big exclusion.
Sounds to me like you were mis-sold.

Good luck.

dunstonh

Pregnancy is not an issue that affects eligibility.

skintmumof2

I only just put my complaint for this PPi in this year back in July. I also complained about the way the actual loan was sold to me aswell.

Received letter today,
They have made me an offer:
Refund of premiums £378.29
Interest at 8% calculated up untill 11 Oct 2012 £165.66
Early Settlement Difference £1372.01
TOTAL £1915.96

There is a leaflet which says if I wish to use this offer to reduce a current debt held with them then to call their dedicated team blah blah...

Im planning on filling our oil tank up for the winter and then declaring myself bankrupt (As per my other posts I am in debt to other companies)

Wanted to share an update here to close this post off.
Good luck to fellow MSErs