PPI Credit History

Badgeronimous
Badgeronimous Posts: 17 Forumite
edited 31 December 2012 at 7:10PM in Reclaim PPI & other insurance
First of all, big thanks to MSE whom allowed me to successfully claim back several thousand pounds in PPI that was useless to me as I was a contractor.

Anyway, I generally have a good credit history, indeed my only blot is a 9mth spell when I was unemployed and unable to pay back a £550pcm loan (falling behind on 5 payments). The loan has since been settled.

My question is, given that I consciously (and stupidly in hindsight) paid the loan supplier (Clydesdale Bank) for a product to protect me from unemployment that subsequently proved useless, am I able to request the bad reports are removed from my credit history?

My view is that I did a responsible thing insuring myself for sickness/unemployment on a fairly large loan, with large monthly payments. If the product I thought I had worked, I would never of been in a position to default on the loan. Thus feel aggrieved to have this mark still against me, denting my available credit, and credit history.

Is it possible to request my bank (Clydesdale) remove this red mark on my credit report?

Comments

  • My question is, given that I consciously (and stupidly in hindsight) paid the loan supplier (Clydesdale Bank) for a product to protect me from unemployment that subsequently proved useless, am I able to request the bad reports are removed from my credit history?
    No, you still defaulted.
    Sorry.
  • dunstonh
    dunstonh Posts: 115,904
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    My question is, given that I consciously (and stupidly in hindsight) paid the loan supplier (Clydesdale Bank) for a product to protect me from unemployment that subsequently proved useless, am I able to request the bad reports are removed from my credit history?

    Theoretically, it is possible but practically it wont happen. The size of the PPI premium is likely to have made little or no difference to the outcome. A £550pm loan payment may have been £520 without the PPI. So, did you continue to make payments of that sort of level? No, fell behind by 5 payments. So, its fair to say that the PPI element would not have changed the situation.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Badgeronimous
    Badgeronimous Posts: 17 Forumite
    edited 1 January 2013 at 1:53PM
    dunstonh wrote: »
    Theoretically, it is possible but practically it wont happen. The size of the PPI premium is likely to have made little or no difference to the outcome. A £550pm loan payment may have been £520 without the PPI. So, did you continue to make payments of that sort of level? No, fell behind by 5 payments. So, its fair to say that the PPI element would not have changed the situation.

    I agree, but that isn't what I am saying.

    As it was I lost my job, as 2008 hit my industry hard, I was out of work for almost a year. Once unemployed I tried to activate my PPI, only to be told I couldn't use it for unemployment as I was a contractor, however this was something I was specifically told was ok at the time of taking out the loan (and have contractual proof of this as it specifically states on my PPI application that I am a contractor, which begged the question.... why was I ever sold it, and why was I told this was OK so long as I was employed on full time hours?)

    My point is, if I had the product the bank manager gave the impression she had sold me, the PPI should of been paying the £550 a month, not me. I felt I was insured for loss of income, and budgeted accordingly. Perhaps if I wasn't insured I'd of been more frugal, but that is speculative. Although I do doubt, even being super frugal, I'd of had enough money to keep me going for almost a full year, but I do think my situation would not of been as bad had I known 2-3yrs in advance I wasn't insured for what was my main outgoing after rent/council tax.

    Basically, I had a loss of income payment protection policy that didn't do what I was told it would do when I lost income. I'm quite annoyed about that.

    As it was, I managed to survive for 4-5mths worth of payments with savings, then hit hard times when I ran out of money. Obviously £550 a month, and other bills/living costs eats into savings very quickly.
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    You can of course write to the Bank explaining that you have already had your PPI complaint upheld, but you would now like the default removed from your credit history for the reasons you have detailed on this thread.
    As Dunston says, it's certainly possible for the Bank to do this for you but very unlikely.
    God loves a trier...
  • dunstonh
    dunstonh Posts: 115,904
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    As it was I lost my job, as 2008 hit my industry hard, I was out of work for almost a year. Once unemployed I tried to activate my PPI, only to be told I couldn't use it for unemployment as I was a contractor, however this was something I was specifically told was ok at the time of taking out the loan (and have contractual proof of this as it specifically states on my PPI application that I am a contractor, which begged the question.... why was I ever sold it, and why was I told this was OK so long as I was employed on full time hours?)

    You shouldnt have been sold it. Hence you were refunded.
    My point is, if I had the product the bank manager gave the impression she had sold me, the PPI should of been paying the £550 a month, not me. I felt I was insured for loss of income, and budgeted accordingly. Perhaps if I wasn't insured I'd of been more frugal, but that is speculative. Although I do doubt, even being super frugal, I'd of had enough money to keep me going for almost a full year, but I do think my situation would not of been as bad had I known 2-3yrs in advance I wasn't insured for what was my main outgoing after rent/council tax.

    I do see what you are getting at but there are too many hypothetical scenarios in there and the system doesnt work that way. Especially as the product you want never actually existed. It is unlikely you would have saved a years worth of income in the time period you had the loan. Even with loan protection, you would still need savings to cover other things.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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