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PPI on a bad debt loan
wilkie9847
Posts: 2 Newbie
If a loan is taken out and is never repaid but it turn out the loan had ppi can the lender say yes you can have it back but we will knock it off what you owe us ?
If the answer to that is yes can it be reclaimed one of these 3rd party companies in order to get hold of the money ?
If the answer to that is yes can it be reclaimed one of these 3rd party companies in order to get hold of the money ?
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Comments
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The loan company can use what your redress is to offset what you owe. If you owe less than the redress amount then you'll get the difference back. It may trigger them into chasing you for the remainder if you still owe them.
You can use a 3rd party company, but I would recommend against it.
Firstly you can do it yourself for the cost of a few stamps. That's all a 3rd party company will do, they get you to do all the work and then charge 30%+VAT to put your forms in another envelope and pass them to the bank. They have no more powers than you do.
If your claim is successful and the redress amount doesn't fully pay off the loan amount, or the amount left over isn't much, you will still have to pay the 3rd party company's fee. This might leave you with another debt to pay.Competition wins:
2010 - approx £450. 2011 - approx £800. 2012 - approx £300. 2013 - nothing so far!0 -
I would say that under no circumstances should you use a claims company. If successful, the claims company will bill you on the full amount of the redress. Even if you dont see a penny of it personally as it gets offset against the debt.
Also, as mentioned, it can reactivate the debt and you may find yourself being chased for money that has long been forgotten.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.0 -
wilkie9847 wrote: »If a loan is taken out and is never repaid but it turn out the loan had ppi can the lender say yes you can have it back but we will knock it off what you owe us ?
If the answer to that is yes can it be reclaimed one of these 3rd party companies in order to get hold of the money ?
If you haven't repaid the loan, presumably you also haven't paid the PPI. What is there to reclaim?0 -
So the OP thinks it is okay not to repay his debts and insist that his creditors write them off but still pay everything they might owe him.
Moral if not financial bankruptcy.0 -
wilkie9847 wrote: »If a loan is taken out and is never repaid but it turn out the loan had ppi can the lender say yes you can have it back but we will knock it off what you owe us ?
Yes they can.wilkie9847 wrote: »If the answer to that is yes can it be reclaimed one of these 3rd party companies in order to get hold of the money ?
No they can't.Non me fac calcitrare tuum culi0
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