PPI FAQs discussion thread

Razor007

Hi Guys,

Just a question I need clarification on. I have just been told that I have PPI on 3 loans with 3 different account numbers which are with LLoyds TSB which are now all closed but I also have a new loan currently with them which is running which does not have PPI. I would rather have the refund come back to me as I could do with the money right now but if they say to me that they will put that towards the current loan are they in their right to do that as it is a totally different loan?

Your answers will be appreciated.

Whatisacceptable

I went through a period of moving the outstanding debt from one credit card to another, to take advantage of interest free periods. Could PPI have been added to the sum being borrowed? - I think I would have said no if I'd been asked, as my employer (local authority) paid my salary during sickness, but I understand some companies added it on anyway?

dunstonh

Could PPI have been added to the sum being borrowed?

No. That is not how credit card PPI works. Plus, wouldnt you have noticed it?

but I understand some companies added it on anyway?

Maybe they did but you would spot it a mile away just by looking at your statements.

Former_MSE_Wendy

Whatisacceptable wrote: »

I went through a period of moving the outstanding debt from one credit card to another, to take advantage of interest free periods. Could PPI have been added to the sum being borrowed? - I think I would have said no if I'd been asked, as my employer (local authority) paid my salary during sickness, but I understand some companies added it on anyway?

PPI could have been on any of your accounts Whatisacceptable so do contact your lenders to check if you're not sure.

Wanno

I took out a £150,000 loan for a housing renovation and was informed that in order to secure the loan I had to take an additional £150,000 life insurance as well securing the loan against the property. I didn't really want to and definitely billed as compulsory. Does this come under miss selling?

I am a bit concerned that the bank will call in the loan if I rock the boat sending in a complaint letter, on the other hand it is a large amount of money and I have no need for the life insurance.

Any help?

t3c

Hi everyone, I'm hoping that somebody can advise me on the right course of action to take please?

As mentioned in the title I went bankrupt back in March 2006 and handed over all our paperwork/accounts to the Office Receiver back then.

Since all this to do with reclaiming PPI came into the headlines I've made a couple of phone calls to see if we were entitled to any pay out as I know we did have some insurance on loans and stuff before that fateful day. But I've never got a definite answer nor have I've been given clear advice on how to proceed.

So, after seeing Mr Lewis on Daybreak today I thought it's time to get this sorted once and for all and here I am!!

Is it possible that I can claim even after being made bankrupt and how do I go about it even though I now have no paperwork from any of the companies that may have miss sold me PPI?

Many thanks in advance

Steve

dunstonh

Is it possible that I can claim even after being made bankrupt and how do I go about it even though I now have no paperwork from any of the companies that may have miss sold me PPI?

You can still complain about mis-sold products that were taken out prior to you being bankrupt. However, if your complaint is successful, then any redress paid will not come to you but go to the Official receiver to pay towards your creditors that you left owing money.

t3c

dunstonh wrote: »

You can still complain about mis-sold products that were taken out prior to you being bankrupt. However, if your complaint is successful, then any redress paid will not come to you but go to the Official receiver to pay towards your creditors that you left owing money.

Thanks.

My wife and myself both thought this but I read this on this site:

"I've had an IVA / debt management plan / been bankrupt, can I reclaim? Yes, your finances now aren't relevant to whether you were mis-sold or not.
It's worth being aware that if you still owe the lender, either now or from a debt in the past, it may use the cash towards your debt. It can do this without your permission but if this leaves you in financial hardship, explain this to the bank and it may change its offer.
If discharged from bankruptcy, and the mis-selling happened after you filed, there's only a small chance you can keep the cash. It's more likely your official receiver will get it, especially if you've ongoing payments or restrictions."


And as most of the mis-selling would have been well before my bankruptcy and probably different companies I thought I'd better check and double check before giving up on this.

dunstonh

t3c wrote: »

Thanks.

My wife and myself both thought this but I read this on this site:

"I've had an IVA / debt management plan / been bankrupt, can I reclaim? Yes, your finances now aren't relevant to whether you were mis-sold or not.
It's worth being aware that if you still owe the lender, either now or from a debt in the past, it may use the cash towards your debt. It can do this without your permission but if this leaves you in financial hardship, explain this to the bank and it may change its offer.
If discharged from bankruptcy, and the mis-selling happened after you filed, there's only a small chance you can keep the cash. It's more likely your official receiver will get it, especially if you've ongoing payments or restrictions."


And as most of the mis-selling would have been well before my bankruptcy and probably different companies I thought I'd better check and double check before giving up on this.

The site is wrong and potentially misleading as I believe keeping the money when on a pre-bankruptcy asset would be unlawful. Have you got the link on this site where it says that. We can then let MSE Wendy know so it can be corrected.

http://www.bis.gov.uk/insolvency/news/news-stories/2012/Apr/PPI-mis-selling-claims-and-bankruptcy

Following provisions of the Insolvency Act 1986, The Insolvency Service takes the view that if a PPI policy was mis-sold before the date of an individual’s bankruptcy, any claim relating to the alleged mis-selling of the policy is owned by the official receiver or trustee of the bankruptcy estate, not the individual to whom the policy was sold.

Discharge from bankruptcy does not alter this position. Discharge does not operate to transfer unrealised assets, including PPI mis-selling claims, back to the individual.

t3c

Thanks for the update and it's a shame but we did think that was the case. Just had to make 100% sure :-(

Anyway, as requested please find a link to page

ww.moneysavingexpert.com/reclaim/ppi-loan-insurance

and it's under the question:

Can I reclaim' queries
"I've had an IVA / debt management plan / been bankrupt, can I reclaim?"