Can I challenge PPI offer??

Telbert

Hello all!

I have put in a claim, they sent me a form saying my current loan has a PPI cost of £5000 attached to it, so I divided this between the term which is 84 months, this giving me a sum of £59 a month that I pay in just PPI, so far I have been paying for 36 months so in my mind have paid £2142 so far in PPI - is my logic sound?

They have agreed to settle and compensate £1200 which in my mind is only half what I have paid so far!

Also they are saying that they will just take it off the exisiting loan that I have, can they do this?

Accurate answers appriciated.

Many thanks in advance!

sylhet

if the loan is still managed by the company they have 2 choice, issue you the cheque or take it off against the debt. if the loan account is closed by that I mean debt collection agency is managing the account - you should get the cheque. I have notice from the forum most PPI claim is sent to the debt collection agency to reduce the debt - which is wrong because I have challenged HSBC on this issue and it was settled before it reach the FSA route.

note even if you bank with the same company and the loan account is managed by a third party company own by the bank (in my case HSBC own MCS Ltd) - according to the credit agreement the bank cannot withdraw fund from your account to settle their own debt (company act).

The key issue here is although the debt collection agency own by the HSBC it makes no difference since they are goven by the Companies Act - they do not have authority to withdraw fund from your account. if the debt is managed by the Bank - short term solution, then the bank can use the payment to reduce the debt unless you submit a letter of finanical hardship in case you need to take the FSA route.

magpiecottage

Are you saying you paid a premium up front of £5,000, which was added to your borrowing? or that would be the cost over the entire term of the loan?

sylhet

I think you may have misunderstood my comments, regardless if the premium is paid as one payment or during the term of the loan. The PPI refund does not care whether the loan account is closed or active (meaning you still making part or full payment).

The PPI refund is for the entire amount. For example my wife PPI was £4000 for 5 years loan term. Due to the payment difficulity after 12 months and the account was closed and sent to the debt collection agency where she is paying £1 per month. She received a PPI refund of £7200 approx by RBS. I hope that make sense.

If your loan company or bank are saying they will apply the PPI refund against the debt - don't let them unless you want to - becaused I rather have cash in my bank account and try to pay off the debt on a long run. Even if you miss the few payment they will apply a default against your name and you cannot get creditf or 6 years. Therefore why give them the benefit of doubt and keep the cash yourself.