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question re. PPI reclaim vs defaulted bank loan...
brettcooper1
Posts: 58 Forumite
A strange question that noboy whos opinion I've courted seems to have the faintest idea how to answer so I'm hoping somebody can help!
This may well be posted in the wrong section so apologies.
The beginning is a good place to start so we shall head there.
In May 2007 I took out a loan with AA (i think it was Bank of Scotland behind umpteen different brokers) for £10,000 over 7 years. So far so good.
In May 2009 my business entered a period of meltdown (the banks wouldn't fund my failure, even though we were all funding theirs) and I began to miss payments.
Fast forward to Sept 11 and I'm in a mess. My dad very kindly steps in and clears, not the balance but a reduced amount (I'm not sure exact figures but the balance was around £12k and he paid £9k to clear it). The loan shows as settled against my credit report.
I recently applied for the PPI back on my loan (as self employed it was a little pointless anyway!). I got a letter through on Saturday offering me £6600 in compensation which is nice and stating that i don't need to do anything, my payment will arrive automatically.
My question is this though; Do Bank of Scotland have the right/power to withhold some of that money in order to take me up to the £12k (ish) balance? Or by accepting the lower £9k figure have they forefeited their right to this money?
I don't really want to phone and ask them, might put the idea in their head and having the whole £6600 would be jolly nice.
Also, if I had to make up their amount, then pay the PPI company their cut, I'd be left with about 50p as the PPI firm won't want to know/care that I didn't recieve all the money?
Can anybody shed any light on this?
This may well be posted in the wrong section so apologies.
The beginning is a good place to start so we shall head there.
In May 2007 I took out a loan with AA (i think it was Bank of Scotland behind umpteen different brokers) for £10,000 over 7 years. So far so good.
In May 2009 my business entered a period of meltdown (the banks wouldn't fund my failure, even though we were all funding theirs) and I began to miss payments.
Fast forward to Sept 11 and I'm in a mess. My dad very kindly steps in and clears, not the balance but a reduced amount (I'm not sure exact figures but the balance was around £12k and he paid £9k to clear it). The loan shows as settled against my credit report.
I recently applied for the PPI back on my loan (as self employed it was a little pointless anyway!). I got a letter through on Saturday offering me £6600 in compensation which is nice and stating that i don't need to do anything, my payment will arrive automatically.
My question is this though; Do Bank of Scotland have the right/power to withhold some of that money in order to take me up to the £12k (ish) balance? Or by accepting the lower £9k figure have they forefeited their right to this money?
I don't really want to phone and ask them, might put the idea in their head and having the whole £6600 would be jolly nice.
Also, if I had to make up their amount, then pay the PPI company their cut, I'd be left with about 50p as the PPI firm won't want to know/care that I didn't recieve all the money?
Can anybody shed any light on this?
0
Comments
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Sometime ago I got my ppi back from an egg loan and as I was also in default it paid off the balance of the loan, so although I didnt get to feel the reddies it reduced the loan.
Not quite the same I know but if you have written proof they have accepted the reduced amount and it says so on your credit history I would feel that it was a done deal and you should get the money!
Hope you do and enjoy it sounds like you have had a rough time.0 -
Hi duffs,
thanks for the info, yes had a bit of a rough time but there is now light at the end of the tunnel. fingers crossed its not another train!
im hoping that with mine having been settled already they have forefeited their right to the balance but who knows. it would be very unlike a bank to forefeit their rights to anything!0 -
If they settled for an agreed figure then they settled. How can they come back and ask for more?0
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Was it a full and final settlement? or just a payment towards the loan?0
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Hi brave..
no it was in full and final settlement of the loan
indeed on my credit score it is recorded as settled (but with eleventy four million defaults)0
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