Loss of home due to failed PPI

Marlyone

I was forced to sell my home due to a charging order placed on the property i owned. The reason for the charging order being placed was mis sold PPI. My question is....Although I am in the process of making many PPI claimbacks, do I have a case for also seeking compensation because we were forced to sell our home due to the failed PPI ?

dunstonh

The reason for the charging order being placed was mis sold PPI.

Not it wasnt. The reason for the charging order is because you didnt pay your debts.

Although I am in the process of making many PPI claimbacks, do I have a case for also seeking compensation because we were forced to sell our home due to the failed PPI ?

Unlikely because the small monthly premiums that you would have paid would almost certainly made little impact on your ability to pay your bills. i.e. if your PPI was £50pm then it isnt going to be big enough to prevent a charging order.

roonaldo

can you explain how you have come to this conclusion? Why was it mis-sold? why wouldn't the PPI pay out?

Marlyone

Thank you for the pointer, not worth me worrying about then.
The reason I could not pay the original debt was because I lost my job. When I contacted the bank concerned and filled out the protection forms they informed me i was covered. What I had missed in the print was the fact that they still expected me to make the original monthly payments, prove I was still unemployed when I had to sign on fortnightly. Then they would refund the previous payment I had made. The big problem I then had was maintaining the monthly payments, wait for the previous one to be returned etc.... The "turn around" time for this process ended up being approx 6 to 8 weeks.
When this went to court, the judge read the PPI paperwork and declared that even he couldn't see how I could have kept this up. He also stated in the notes that this was "Mis representation of a financial product".

roonaldo

This sounds more of a claim issue than a PPI mis-sale complaint. You claimed on the policy so it you were eligible for it and it was suitable for your needs.

Stand alone PPI policies will pay the monthly benefit of the policy directly to you. You still need to pay the mortgage otherwise you will go into arrears and get repossessed. It wouldnt be the fault of the seller of the policy if it took 6-8 weeks to process a claim. You do need to register for JSA and sign on, this is bog standard, otherwise you are not registered as unemployed. You cannot tell the insurance company you are unemployed when you have no proof.

I claimed on a policy once when made redundant, it did take them a few weeks to accept claim, but after that it took 2-3 days to process payments, that was with Cardif Pinnancle. I would sign on at job centre on a Wednesday, get claim form signed once a month, put it in post and would have payment in my account by monday.

However, the bank could could have frozen the interest, given you a payment holiday or temporarily switched you to an interest only mortgage until you get back on your feet. Did you discuss that with them?

It sounds like there is more to this then you have let on, as it would take months of arrears to get to court stage and you said you had to sell your house, again that would take months.

dunstonh

What I had missed in the print was the fact that they still expected me to make the original monthly payments, prove I was still unemployed when I had to sign on fortnightly. Then they would refund the previous payment I had made.

That is normal with most insurances. They refund you but you have to cover it first.

I am surprised the lender took that action as if they know the debt is covered by PPI, especially their own product, then they would allow for the delay. Was your debt increasing because of other expenditure as this doesnt sound right? i.e. Did you get the PPI money but use it to pay for other things rather than pay the mortgage/secured loan?

Marlyone

There really isn't anymore involved than I have said. I will admit to having been quite naive about PPI and even kept up regular payments for a few months in the hope I would find work. I was registered unemployed and when I was aware of the process supplied proof as required. But as was suggested, eventually my finances became tighter and tighter because other bills had to be paid as well.Not every establishment is customer focused and friendly. I had no savings left to fall back on as I had used these to keep up with my commitments.
This is when my real problems with keeping up began. I did manage another few months, but I just ran out of options. This was not on my mortgage it was an unsecured loan. My mortgage lender was great and even sat down and helped me unravel most of my mess. They gave me a mortgage holiday. But by then I was in arrear's by a month on the PPI up front payment. I was eventually 3 months in arrear's and still unemployed when the charging order came through. It was executed some 3 - 4 months later.
I am not claiming total innocence here,more my own stupidity and lack of understanding.But more upfront and available advice would have saved me making a lot of mistakes. I did try to carry on with payments right up to the point where I ran out of options and savings.Judging by the media hype over PPI and sites like this, I am not alone in what happened to me.

My basic question is should I now make the PPI claim and do I have a point if I question the outcome of the way it was sold, without me knowing I actually had it in the first place ? The result of me ending up with the charging order and having to sell my home of 11 yrs. I never had mortgage arrear's or any arrear's of any kind before my job loss.

I do appreciate your feedback and questions.

dunstonh

Judging by the media hype over PPI and sites like this, I am not alone in what happened to me.

I am a regular on this board and obviously follow the media and your situation is not similar to the PPI hype. I do sympathise with your situation but I believe you are looking in the wrong places for blame. To me it looks like you just didnt have enough insurance and enough savings to cover your bills.

My basic question is should I now make the PPI claim and do I have a point if I question the outcome of the way it was sold, without me knowing I actually had it in the first place ?

You have given no reason for mis-sale and the fact you claimed on the policy would be used as evidence that you did know that you had it.

The result of me ending up with the charging order and having to sell my home of 11 yrs. I never had mortgage arrear's or any arrear's of any kind before my job loss.

the PPI did not cause that. Your failure to pay your bills did. Had you actually had more PPI then you would have been better off. If anything the PPI claim delayed the charging order as it least it gave some income during that period.

roonaldo

It doesn't sound like there is anything wrong with your PPI. To be refunded PPI it has to be mis-sold. Nothing you have said indicates mis-sale.

Like what dunstonh said, you probably actually needed more insurance.