Interesting PPI query

supercivic99

Hi Folks,


Great site BTW, always my go-to place for info!


My query is that I had my original loan through the BoS in 2007 and remember being heavily advised to take PPI gold level which I did. Being young and naïve I just ticked away.


I then topped up my loan agreement (yes - a poor life-experience which I have learnt by the hard way) in 2010 which did not have PPI. This finished the old loan and started a new loan, incorporating the amount still due on the old loan into the new one.


I have been thinking about this for some time and my big worry is that even if I put in a claim for PPI on the original loan and were successful, would they do something as spiteful as ask me to fully pay off my existing loan which I'm still paying off? Can they do that? Also, my current account is with them if that makes any odds.


Cheers

Insider101

supercivic99 wrote: »

Hi Folks,


Great site BTW, always my go-to place for info!


My query is that I had my original loan through the BoS in 2007 and remember being heavily advised to take PPI gold level which I did. Being young and naïve I just ticked away.


I then topped up my loan agreement (yes - a poor life-experience which I have learnt by the hard way) in 2010 which did not have PPI. This finished the old loan and started a new loan, incorporating the amount still due on the old loan into the new one.


I have been thinking about this for some time and my big worry is that even if I put in a claim for PPI on the original loan and were successful, would they do something as spiteful as ask me to fully pay off my existing loan which I'm still paying off? Can they do that? Also, my current account is with them if that makes any odds.


Cheers

No, you don't need to worry about that. Whilst technically the loan is repayable on demand, it would not be considered fair treatment of customers to call in the loan without substantial warning unless there was a very sound commercial reason for it. It would especially not be considered TCF to do so because you've complained about your PPI.

Then there's the practical reality which is banks PPI complaints are handled by specialist departments completely separate from their lending teams and they are far too busy to worry about being vindictive even if they could. The final point is that they are making far more interest on your loan than they are paying on your current account. Hence, as long as you're repaying it monthly on time, asking you to repay it in full is not in their commercial interests. They're making money out of you having it.

That said, you do need valid complaint reasons which you haven't mentioned yet. What are they?

amersall

This is Single Premium PPI, this is one of the reasons for mis sell.

" Heavily Advised " is not a reason and is hearsay, don't use it.

Gold level costs more so more interest to repaid over the loan term.

This PPI is a loan on the loan with interest to term end, the fact that when you settled this, the remaining PPI after the rebate would have been repaid by you in the settlement figure.

RosieWhittle

As far s I know, it's likely that if your claim is upheld you will be given 2 options.

1 - take the redress and continue with your current loan
2 - use the redress to reduce the balance on your current loan. If the amount of redress offered is more than the outstanding balance then you will receive the difference. If it is less, then either you'll be able to continue with your existing repayments until it's cleared, or they'll ask you to take a new loan for the remaining balance.

Hope that helps.

[Deleted User]

RosieWhittle wrote: »

As far s I know, it's likely that if your claim is upheld you will be given 2 options.

No, the redress is just paid direct to the customer and it's then his/her choice whether to pay any monies to the existing loan in the manner you describe.

Only if the loan is in arrears can the Bank offset redress without the permission of the customer..

supercivic99

Thanks folks, you have been very helpful. My query has been answered

RosieWhittle

Moneyineptitude wrote: »

No, the redress is just paid direct to the customer and it's then his/her choice whether to pay any monies to the existing loan in the manner you describe.

Only if the loan is in arrears can the Bank offset redress without the permission of the customer..

Which is why I said 'options'. I never said that the bank would just use the redress to repay the loan without authority from the Customer. I missed the fact that the OP had stated it was from BoS and if that's the way that they award redress then that's great, however I know that some other banks do give the options I stated above.

supercivic99

Success! See PPI Reclaiming successes and failures thread for info.