Anyone had PPI repaid on a bad loan?

La_x

Hi all,

Hoping I could get some advice my other half took out a loan with Natwest at the end of 2006, at the time he was self employed and was told he had no other option then to take out the PPI with the loan due to this. In 2007 he lost work (he was in the building sector) and as the recession took hold it was hard enough to get by paying monthly bills and rent.. anyway he went to our Natwest local branch to be told the PPI didnt cover his loss of work!!!!!

Long story short is the loan went to a debt collector and as soon as he found a job He started paying a (lesser) sum monthly and is still paying this back.... I have sent a complain off to Natwest about this PPI (wish we had complained at the start but were young and nieve and assumed we couldnt win against a big bank) Can we get this PPI back? even though we had trouble paying the loan for a time?

Anyone got experience of this??

Thanks in advance

DrSqueeze

Yes you can still make a complaint. If they uphold the complaint, the money might be used to repay arrears on the loan.

The fact a claim for unemployment was rejected strengthens your case as that's one of the main things PPI is supposed to cover.

Go for it!

kerrirobberts

My loan is now with debt collection (outside Lloyds TSB), they've offered me a refund on my PPI and that's going to go into my bank account when they get around to doing it.
So yes you can claim.
I'm assuming my refund won't go to my debt collection company, seeing as Lloyds sold the debt to them and I no longer have anything to do with lloyds, but I shall update when I get my refund through.

dunstonh

I'm assuming my refund won't go to my debt collection company, seeing as Lloyds sold the debt to them and I no longer have anything to do with lloyds, but I shall update when I get my refund through.

Dont assume that yet. They will have an arrangement with the debt company to pass funds on should they come into the money.

The normal outcome is that debts in arrears, default or written off/passed on are cleared first by the redress with any surplus being paid to the individual. However, record keeping at banks can be poor across their network and the complaints handlers may not be aware the debt was not repaid or are too swamped in complaints to check. So, it is not unusual for them to miss it.

kerrirobberts

Ah thank you. I shall keep an eye out then as they have said that the payment will be going to my HSBC bank account and I am paying off to the d.c.a on a monthly basis.

garth549

To be honest all of the banks have 1000s of claims to process in a really short space of time so i'd say there's a chance they won't notice and you'll receive the payout.