After a PPI refund

bertram_IX

My PPI refund was refunded back in about 1997 after I discovered that, having taken it out, I would never be able to make a claim and the Halifax either knew this, or should have known. This was discovered after I made a claim.

They refunded it in full and then took the attitude that I was still liable to repay my personal loan. I have not worked since because of health problems and six years ago reached retirement age.

Various debt collection firms have contacted me from time to time wanting me to commence repayment. I have tried contacting Halifax, or HBOS now, to attempt to sort this mess out but, amazingly, have got nowhere.

I was wondering if anyone else had this problem and if so how they were progressing?

dunstonh

You borrowed the money and you are still liable to pay that money. The refund of PPI doesnt change that.

All you can do is negotiate with them on payment terms or if they are not interesting in collecting it then let it die a natural death and become statute barred.

[Deleted User]

I don't quite understand your post. You appear surprised that you still needed to repay the loan after a PPI claim.

Is that right?

-taff

bertram_IX wrote: »

They refunded it in full and then took the attitude that I was still liable to repay my personal loan.

Having your PPI refunded doesn't mean you don't have to pay back the capital of the loan.

societys_child

Woah, this is a new one . . .

[Deleted User]

bertram_IX wrote: »

They refunded it in full and then took the attitude that I was still liable to repay my personal loan.

If you cannot or could not pay your loan then there were numerous debt relief avenues you could have taken at the time. Why is this only an issue now, almost twenty years later?

The PPI refund is entirely irrelevant.

OnlyAlan

As you are retired and in poor health, this seems to be about whether or not you CAN repay the debt, rather than if you SHOULD repay it. The PPI is not relevant here.

Are you aware that if you have not paid anything or admitted the debt in writing for a period of six years (five in Scotland) the debt will now be Statute Barred and unenforceable?

bertram_IX

I obviously did not make my position clear. When I took out the loan, which Halifax offered, I didn't ask them for it, I was not working having been diagnosed with insomnia that the doctor had claimed would be dealt with in a couple of months. This turned out a few months later to be something considerably more serious and I am still suffering from it.

Being at home it was an ideal time to have some work done around the house, hence the loan. When Halifax offered it to me they knew I was not working because they were paying out, under a mortgage protection policy, a sum of money each month to cover my mortgage with them. They asked me if I wanted PPI and I said yes. They knew, or at least should have known, that if I am not working any PPI policy I take out is void, and they certainly knew I wasn't working. However, if I had not had the PPI cover I would have not taken out the loan so would now not have the occasional letter from a debt collection agency.

When I informed Halifax that the PPI policy would never pay out under any circumstances, having made a claim some months later, they made an immediate refund of the premium. They thought it perfectly fair to have offered me a loan with PPI and knowing that the cover would be non-existent to then demand repayment when the policy was cancelled.

Since then there has been the occasional letter, from Blair Scot and whoever, then Lowell Financial, and now some new outfit. Nothing ever progresses beyond my telling them I have no intention to settle and the occasional attempt to get some sense out of Halifax/HBOS.

I would appreciate it if someone could explain to me why, after selling me a loan under false pretences, I have to uphold my part of the deal when they didn't?

[Deleted User]

bertram_IX wrote: »

When I took out the loan, which Halifax offered, I didn't ask them for it,

It doesn't matter whether you instigated the process, you signed a legally binding agreement with Halifax. The Bank obviously believed you had the ability to pay it back and wouldn't be able to cross reference your unemployment unless you told them.

bertram_IX wrote: »

if I had not had the PPI cover I would have not taken out the loan so would now not have the occasional letter from a debt collection agency.

How did taking the PPI in any way cause you to take out the loan?

bertram_IX wrote: »

When I informed Halifax that the PPI policy would never pay out under any circumstances, having made a claim some months later, they made an immediate refund of the premium.

Nothing wrong or underhand about that. As I said earlier, you obviously didn't tell them you were unemployed originally.

bertram_IX wrote: »

They thought it perfectly fair to have offered me a loan with PPI and knowing that the cover would be non-existent to then demand repayment when the policy was cancelled.

I think it's "perfectly fair" for them to expect repayment of the loan too.

bertram_IX wrote: »

I would appreciate it if someone could explain to me why, after selling me a loan under false pretences, I have to uphold my part of the deal when they didn't?

When you detail these "false pretences", someone might be able to comment further. The Bank have refunded the PPI, so what is the issue with you repaying the loan? :eek:

[Deleted User]

bertram_IX wrote: »

I would appreciate it if someone could explain to me why, after selling me a loan under false pretences, I have to uphold my part of the deal when they didn't?

They did uphold their part of the deal.

Their part of the deal was to give you money. They did this.

Your part of the deal was to repay the money. This appears to still be a work in progress.

dunstonh

I would appreciate it if someone could explain to me why, after selling me a loan under false pretences, I have to uphold my part of the deal when they didn't?

you borrowed money. You spent that money. you should repay that money.

We would appreciate it why you think you can spend money and not repay it?