Twice defaulted loan?

AngryDog

Hi,

I took out a personal loan with Northern Rock about 6 years ago. in 2010 I hit financial difficulties and was no longer able to make the stated payment. The loan then defaulted.

In 2011 I put a claim in for the PPI refund (10 year loan, single payment policy, meant the security was only there for 5 years) which I received. Northern Rock then re-started a new Loan for the existing loan amount. This then took 7 months to default.

My questions are, should they have been able to start the loan afresh? Should it have taken 7 months to default? I wasnt making any payments on it. And lastly, I feel like I have defaulted twice on the same loan. Is this allowed?

Thanks.

happy_bunny_2

Not sure I understand exactly.

You took out a loan with PPI then defaulted on it.

You reclaimed PPI, which they gave you back.

They then created a new loan for the old loan minus PPI and defaulted you on that after 7 months?

This sounds well iffy if so.

AngryDog

happy_bunny wrote: »

Not sure I understand exactly.

You took out a loan with PPI then defaulted on it.

You reclaimed PPI, which they gave you back.

They then created a new loan for the old loan minus PPI and defaulted you on that after 7 months?

This sounds well iffy if so.

That is 100% correct

happy_bunny_2

Did you sign a new loan agreement?

Even if you did, that's still questionable from the bank.

I would be submitting a written complaint about that.

AngryDog

I don't recall signing a new one. All I signed was the PPI refund paper work. The loan has been sold to Marlin (it was with northern rock), will that make any difference?

AngryDog

How would I go about complaining about it? What would I be aiming to achieve? To get the most recent default removed?

AngryDog

All of my debts are with DCA's already.
I don't recall verbally agreeing to it either. And how do you mean by getting out of a verbal contract? Do you mean not having to pay the debt?

AngryDog

I'll have to go through all of my paper work. The DCA didnt add the default but Northen Rock did. Ill ask them for a copy of my most recent credit agreement. When I check my credit report, it shows the loan that the ppi was on as settled.

happy_bunny_2

AngryDog wrote: »

How would I go about complaining about it? What would I be aiming to achieve? To get the most recent default removed?

Write to the DCA, stating your complaint.

State that the loan defaulted on date x and should not have been re-registered.

See what comes back.

AngryDog

happy_bunny wrote: »

Write to the DCA, stating your complaint.

State that the loan defaulted on date x and should not have been re-registered.

See what comes back.

Even though it wasn't the DCA that defaulted it?
The story goes that NR defaulted the first time, it went yo DCA, I claimed back ppi from NR, they then settled the loan, then started it again, then defaulted it and gave it back to the DCA

happy_bunny_2

AngryDog wrote: »

Even though it wasn't the DCA that defaulted it?
The story goes that NR defaulted the first time, it went yo DCA, I claimed back ppi from NR, they then settled the loan, then started it again, then defaulted it and gave it back to the DCA

If the DCA own/are managing the account, then that's who you need to deal with. It's there job to talk to NR.