PPI won't pay out and being harrassed by debt collectors

tjsgran

I had PPI on a credit card and bank account with O/D facility which I paid £12 a month for the privilige.
I had an accident and had to stop work. The company I worked for was bought out and I was unable to get the insurance claims forms, needed from employer,filled in as the offices no longer exist.The PPI has never paid on the insurance. I am constantly harrassed,with 3-4 phonecalls a day from debt collectors,for this money despite offering nominal payment as goodwill gesture.
I am now disabled from the accident am unlikely to be employed anytime soon. How do I get copies of the original contracts to enable me to sort this out? And is there anything I can do re the insurance not paying out? I am definately not getting any 'extra help' from the bank. Comments appreciated. Thanks

magpiecottage

Have you ever explained this to the lender(s)?

ALIBOBSY

Well all the debt forums and debt charities say whatever you do DO NOT TALK TO THE DCA's ON THE PHONE.

People use a number of tatics to defend against DCA's whom IMHO are the scum of the earth and blatantly lie and threaten people over the phone. If the call again just either ignore them or answer and just keep saying "put it in writing", if you refuse their so called security questions they can't go any further anyway.

You can read up about doing CCA requests to look into if a debt is unenforcable (this does not write it off though and if you have any kind of equity can leave you open to bankruptcy action although this is rare).
For me in that situation (and in fact it is what we did) I would make the minmum offer in writing or even better via a debt charity(they seem to carry more weight with the debt collectors), remember the DCA have no rights to request an income expenditure form (only courts can demand this). But you may decide to offer this to them to prove what you can pay.

Make it clear you are on benefits and have little prospect of working again in the near future so are offering all you can afford, many debt charities/forums advise you send a postal order for the minimal payment as well with the letter (or cheque-but this then risks them having your bank details and trying to use that to set up further payments).
Advise them any arrangement will only be made via standing order or direct banking (again the general advise is not to let them have a direct debit as they have a habit of upping it without your permission or knowledge).

In the meanwhile whilst sorting out the payments I would look at the PPI reclaiming boards to see if you have any grounds for miss selling as reclaiming the PPI premiums etc may well be more that the total owed anyway or at least emnough to make a full and final offer to the DCA. Plus on a credit card charges reclaiming can still be done.

Good luck
Ali x

PS just realised I am assuming the debt has been sold onto a DCA(debt collecting agency), but it may still be held by the original lender with a DCA acting for them in which case they will use any refund to reduce the amount owed. Either way it puts you in a better position than you are now.

tjsgran

Magpiecottage: I have explained this to the lender. They say they need proof of me being off sick,from my former employer,in order to consider paying out on the PPI. I have spoken to the new owners of the company and they say they have no information/paperwork records from the previous owners and as I wasn't there when they took over they are unable to provide any support to my claim. Thanks for your reply:)
Alibobsy: I have no intention of answering these harrassment calls.
They are sending me letters now threatening me with 'doorstep collectors'.You can be sure they won't be getting door opened to them either.I am still recovering from ops and just don't need the stress of it all.
I am sure the debt is still owned by the bank as I continue to get statements and 'missed payment' letters from them. Also this is the second Collection company that has had it. I was paying nominal payment regularly with previous Co when the bank passed it to this nightmare company without notifying me.
They accepted nominal offer payment,which I send monthly,but are still constantly harrassing me for more.
I was told,by the bank,that I had PPI when I phoned them to let them know I wouldn't be able to make payment, until then I had no Idea that the CC had PPI on it.
The £12 a month account included 'unemployment insurance'
The bank continued to charge me this £12 a month for months after I infromed them of my situation, hence running up an overdraft which they now want me to repay. There was no money going into the account but I was not able to close it due to 'contract'!!?
The insurance should be covering me for this situation now. There are so many companies that have gone bust lately,surely I am not the only person in this situation and the banks should not be able to use the 'Lack of employer information' situation as a cop out for paying out on it? There must be some way of enforcing the insurance without this information?
I have looked at the PPI claim board.
I do believe I could claim but don't have my original paperwork/credit agreements. How can I get hold of these from the bank?
If it was successful it would not matter if any amount awarded was payed toward the outstanding debt or to me. I would use it to sort this out anyway.
Thanks for your help:)