Ppi default - advice please

alfred140390

Dear All,



I am new to the forum but in desperate need of some advice.I am now at a point where I am wanting to apply for a mortgage I was advised tocheck my credit scoring on Experian, when I logged on I noticed a default markbringing my credit report down to the poor section. This is a nightmare as I wasconvinced it was going to be great and it obviously prevents me from been ableto apply for a mortgage. Basically, I took out a loan a few years ago withHSBC, then the PPI reclaims came into action, I contacted a company to help mesee if I could reclaim any PPI from the loan, The PPI won in my favour and the remaining3k of the loan was written off as a settlement agreement, however whilst thecase was open I stopped making my loan repayments as the case was determined inmy favour and the loan was written off anyway I didn’t think this would be aproblem as they would only have had to refund me the money anyway when the casewas settled. Because the PPI was mis-sold and the loan ended up getting writtenoff I assumed any default marks to my report would be written off too. However it is still there and will be therefor another 4 years.



I have contacted HSBC and explained that because of thecircumstances I was led to believe any bad credit marks to my file would beremoved. After 8 weeks they have replied to me to say they cannot see any proofof this promise ever been made therefore they cannot remove the default. Imsure there must be something else I can do to convince them to remove it.surely as the PPI went in my favour and the loan was then settled by the bank Ishouldn’t have this default. If anyone could offer me any advice or a solution Iwould be so grateful. Im getting desperate and its causing me a lot of anxiety.

societys_child

https://forums.moneysavingexpert.com/discussion/comment/63120378#Comment_63120378

[Deleted User]

alfred140390 wrote: »

Im getting desperate and its causing me a lot of anxiety.

I'm afraid there is nothing you can do. It was your own decision to stop the repayments to the loan and so your default is due only to your own foolish action.
You'll have to put off getting a mortgage I think...

-taff

Unless you have it in writing or were told this during a phone call [which they may have kept recordings of] then there is nothing you can do.

[Deleted User]

-taff wrote: »

Unless you have it in writing or were told this during a phone call [which they may have kept recordings of] then there is nothing you can do.

I think the Bank have already stated there is no evidence of this. Why would the Bank tell a customer to stop re-payments while a complaint was still ongoing? There would not even have been any guarantee the complaint would be upheld.
The OP says he was "led to believe" bad credit marks would be removed, but I've never heard of any such undertaking being offered and think it's extremely unlikely it ever was.

McKneff

I don't understand why the loan was written off to be honest.

Not much you can do to be honest, except wait till it gets a lot older and has less impact on your mortgage application or wait till it drops off altogether.

[Deleted User]

McKneff wrote: »

I don't understand why the loan was written off to be honest.

From the original post it looks as if the redress awarded covered what was still owed and the Bank off set it against the loan.

Otherwise, I agree the OP will have to put off applying for a mortgage.

-taff

Moneyineptitude wrote: »

I think the Bank have already stated there is no evidence of this. Why would the Bank tell a customer to stop re-payments while a complaint was still ongoing?

There was a woman on here who stated that they did tell her, and they did have a record that she was told this.