Lloyds PPI advice needed please

pinkdragon

After very stupidly taking out a loan for £20,000 plus PPI insurance of £5,000 in 2005, I realised after roughly 5 months that I really couldn't afford the repayments and the loan went to debt collectors. I am paying them back £10 a month at present (£19,000 still outstanding so I shall be well dead and gone before the loan gets paid off obviously)

Is it worth me sending off a claim for PPI or should I just let sleeping dogs lie? I wonder if I did get the PPI back, would that amount be taken off the amount outstanding or would I get it back as a cheque? (Lloyds acc now closed) Any help would be gratefully received.

dunstonh

Is it worth me sending off a claim for PPI or should I just let sleeping dogs lie?

Were you mis-sold?

I wonder if I did get the PPI back, would that amount be taken off the amount outstanding or would I get it back as a cheque?

It can go against the debt. That is the normal outcome with debts defaulted, in arrears or had amounts written off.

pinkdragon

Were you mis-sold?

My employers pay 6 months full and 6 months half pay if I am off sick and I explained that at the time, however I was told I needed PPI and this was added. I was never told it was optional.


It can go against the debt. That is the normal outcome with debts defaulted, in arrears or had amounts written off.

That would be great as at present I am paying for PPI which I can't use.

dunstonh

My employers pay 6 months full and 6 months half pay if I am off sick and I explained that at the time, however I was told I needed PPI and this was added. I was never told it was optional.

Some PPI will still pay out if you have 6 months full and 6 months half. Typically, those that repay direct to the debt (if it comes to you first, say to your current account, then they wont be able to pay out as you cannot be better off if ill. If paid direct to debt then they can pay out).

pinkdragon

So, is the PPI still running even tho the debt is with a debt collector?

dougie212

Hmm... Not an expert in this field but, really, I think what is key is that you were told you needed it, therefore you took it out. Mis sold would include PPI that wasnt wanted or needed, so if either of those are the case, then I'd send a questionnaire in. Whats the worst they can say... But I'd certainly play on the point that you were told you needed it, keep it simple and see how it goes.

With regards to the payment back to you, again, I'm of the understanding that anything in arrears or with a DCA etc has the refund put back towards clearing the debt

amersall

If redress is won, the whole PPI total comes off the debt anyway, so it is worth doing the claim just to get this off the total balance owed if you win.