Nationwide PPI

mollieluck

Hi,

I took out a loan in 2006 but fell behind with payments in 2009. Nationwide accepted a reduced payment as a full and final settlement in 2009 and I have heard nothing from them since until August of this year regarding possible PPI reclaim. I filled in the form and they replied saying that I had been mis-sold but they were going to use the refund to reduce the outstanding balance on my loan taken in 2006 as it was still in arrears.
I called them and they told me that they had accepted a partial settlement in 2009 and was still showing an outstanding balance of £5000, unless I could provide proof that it was a full and final settlement they would keep any refund due. As this was back in 2009 I no longer have any paperwork regarding this loan or the accepted settlement I cant provide them with this and they also say they don't have any records either.
I have checked my credit file and it states that a partial payment was made and although it did not cover the outstanding balance it was taken as a full and final settlement and the outstanding balance is showing as £0 and satisfied in 2009.
I have since written to Nationwide stating this but they still say that I am not entitled to have the refund paid directly to me and they are going to deduct it from the outstanding balance.
How can they deduct money from and outstanding balance from 2009 when my credit file states that the account was satisfied in 2009 and showing a zero balance???????

dunstonh

How can they deduct money from and outstanding balance from 2009 when my credit file states that the account was satisfied in 2009 and showing a zero balance???????

I am not sure why you find it incredulous. They can deduct it because you never paid it. Very simple. The rules are quite logical on this. The lender can offset the redress against arrears, defaults and amounts previously written off.

mollieluck

OK.

I just would have thought that the outstanding balance would still need to be showing on my credit file???

dunstonh

I just would have thought that the outstanding balance would still need to be showing on my credit file???

No. If they agree a settlement of a debt, it means they will not come after you for the difference. It gets loaded as a default on your credit file which will drop off over time. However, technically, you still owe them the money. It just isnt actively chased.

mollieluck

So why do they say if I can provide evidence that this was a full and final settlement they would pay the refund to me?

dunstonh

mollieluck wrote: »

So why do they say if I can provide evidence that this was a full and final settlement they would pay the refund to me?

Possibly as wording such as full and final settlement never existed?

mollieluck

All I have asked for is help to understand as I am confused with it all.
I never have and never will steal from anyone so I am offended by the comment made.
I thought this site was here to help people not to put them down. So sorry that I'm not as clued up as the rest of you.

[Deleted User]

mollieluck wrote: »

All I have asked for is help to understand as I am confused with it all.
I never have and never will steal from anyone so I am offended by the comment made.

You have attempted to reclaim money you failed to pay in the first place.

If you cannot see that this is rather dishonest then there really is little more to be said.

It matters not that the Bank said they wouldn't chase you for the money you still owed, by making a PPI complaint you have reawoken a debt that otherwise would have remained in the past.