Reclaiming PPI when defaulting on repayments

BlackAdder_2

Hi all, I took out a loan about 5 or 6 years ago and I'm confident I was missold PPI. (I was told they wouldn't be able to approve the loan without PPI).

I queried this a few years ago but was told they would offer me back 50% of the PPI as the evidence I had been missold was inconclusive.

With one thing and another I ended up in a bad state with depression so stopped payments and never chased up the PPI claim. However I'm now trying to sort out my debts and was wondering if I can claim back the PPI part of the loan while offering to pay back either:

a. a monthly payment, which would take about 10 years to repay the whole loan.
b. a lump sum payment, which I'm hoping to do with my other debts. The PPI would let me offer all my creditors a bigger payment as it's worth about £800 (although I'm in 15k of debt, every little helps!).

Plus the loan would be statute barred in about a year, and it's one of my bigger debts.

Advice welcomed, thank you :-)

BlackAdder_2

PS. Thanks to other links people have sent me I'm considering an IVA, but still wondering if I can claim back the PPI as I think you have to pay for an IVA?

happy_bunny_2

A PPI claim would admit the debt and restart the SB clock I think

I would wait til definitely SB then reclaim the PPI.

50% sounds like a fob off. You still have that letter?

JuicyJesus

happy_bunny wrote: »

A PPI claim would admit the debt and restart the SB clock I think

I would wait til definitely SB then reclaim the PPI.

Erm... how could one reclaim PPI off of a statute barred loan? The statute barring goes both ways, surely?

happy_bunny_2

JuicyJesus wrote: »

Erm... how could one reclaim PPI off of a statute barred loan? The statute barring goes both ways, surely?

Don't think so. You need to complain within 6 years of realising something was done you consider unfair. If you didn't realise until 10 years after you took out a 12 month loan and paid it back, you can still claim.

In the OPs case, submitting the claim approx 5 years ago might be an issue given the above once it goes SB.

Best OP checks on PPI forum. I'm no expert

gb12345

happy_bunny wrote: »

Don't think so. You need to complain within 6 years of realising something was done you consider unfair. If you didn't realise until 10 years after you took out a 12 month loan and paid it back, you can still claim.

In the OPs case, submitting the claim approx 5 years ago might be an issue given the above once it goes SB.

Best OP checks on PPI forum. I'm no expert

It is also likely that if any redress is given for the PPI then it will be used the offset the balance of the loan, even if the loan is Statute Barred (unless the OP is in Scotland possibly).

happy_bunny_2

gb12345 wrote: »

It is also likely that if any redress is given for the PPI then it will be used the offset the balance of the loan, even if the loan is Statute Barred (unless the OP is in Scotland possibly).

I think you are right. If the debt has been sold though, I would think the OP would get the money.

antrobus

happy_bunny wrote: »

Don't think so. You need to complain within 6 years of realising something was done you consider unfair.....

It's three years not six from the point at which you realise you had a claim. (s14a Limitation Act 1980)....

BlackAdder wrote: »

...I queried this a few years ago but was told they would offer me back 50% of the PPI as the evidence I had been missold was inconclusive.....

.... and that clock is already running.

societys_child

happy_bunny wrote: »

If the debt has been sold though, I would think the OP would get the money.

I believe they can still use it to off-set anything that was written off when they sold the debt.

BlackAdder wrote: »

I'm confident I was missold PPI. (I was told they wouldn't be able to approve the loan without PPI).

That's a weak allegation, can you prove it?

dunstonh

I believe they can still use it to off-set anything that was written off when they sold the debt.

They can. However, there are a small number of commercial arrangements between lenders and debt collection companies where they cannot. Many people assume that a debt has been sold when a third party company starts contacting them. However, in many cases the debt has not been sold. The lender is just using the third party company to handle collection and they share the recovery. So, the offset rule would apply as normal. Where a debt was sold and a total clean slate exists, the FOS has actually ruled the individual keeps the redress. Where a debt was sold but there is a commercial agreement between recovery company and lender to cover later funds received, then it can be offset (in my banking days when we moved from local staff doing collections to using a recovery company, there was an agreement to cover later funds received).

-taff

How did you query and when did you query the PPI? Because if you did it in writing, it will only be statute barred from the date you wrote to them, because you acknowledged the debt in writing. [Check that]
They can use any redress against your debt but you may be able to keep the interest.