Nationwide PPI & Redundancy

moneycookie

Back in 2005 I took out a personal loan with Nationwide and was mis-sold PPI.

In 2007 I was made redundant. After the sale of my house I paid a settlement on the loan to close the account (i.e. not in full) as I didn't realise that I had PPI and could have claimed it through that insurance.

I spoke to Nationwide directly who agreed it was mis-sold and have sent me an offer.
However, this amount will apparently be knocked off the remainder of the loan despite it being "settled"

My questions are:
1. If I could have claimed on my PPI for the loan could I still do that now? As the remaining on the loan at the time was over £4000 and isn't that what PPI is for? Or alternatively is there a way to go back to them with a counter-claim or something?

2. As the statue of limitations are now in effect as it was over the 6 year limit is it still obligated to go against the loan? The so called balance on the loan is roughly equal to the settlement they've offered me so I'll end up with nothing. SO I've had PPI and I've ended up paying in full anyway and get no compensation whatsoever for the mis-selling.

I just don't know where I stand or where to go from here.

Your help is greatly appreciated, thanks guys

dunstonh

However, this amount will apparently be knocked off the remainder of the loan despite it being "settled"

That is the normal way.

1. If I could have claimed on my PPI for the loan could I still do that now?

You could ask. However, that could reduce in less redress and it would still go against the debt written off.

2. As the statue of limitations are now in effect as it was over the 6 year limit is it still obligated to go against the loan? The so called balance on the loan is roughly equal to the settlement they've offered me so I'll end up with nothing. SO I've had PPI and I've ended up paying in full anyway and get no compensation whatsoever for the mis-selling.

They cannot use the courts to get the debt from you. However, the debt still exists. They are allowed to offset the redress against arrears, defaults and amounts previously written off as part of a settlement. No matter how long ago it was.

I just don't know where I stand or where to go from here.

nowhere. Their response is fair and reasonable. To be honest, to expect them to repay you when you never paid them is a bit on the greedy side. However, the rules work against you so it doesnt really matter

magpiecottage

moneycookie wrote: »

1. If I could have claimed on my PPI for the loan could I still do that now? As the remaining on the loan at the time was over £4000 and isn't that what PPI is for? Or alternatively is there a way to go back to them with a counter-claim or something?

You may be able to argue that they should have made you aware of the existence of the policy (since they sold it) and put you back into the position you would have been.

2. As the statue of limitations are now in effect as it was over the 6 year limit is it still obligated to go against the loan?

No it is not. You acknowledged the debt when they agreed to write off part of what you owed them.

By your logic, they could make the same argument the other way round.

The so called balance on the loan is roughly equal to the settlement they've offered me so I'll end up with nothing. SO I've had PPI and I've ended up paying in full anyway and get no compensation whatsoever for the mis-selling.

The purpose of the redress is to put you into the position you would have been in had you never taken out the policy.

If you believe they should have taken account of it and paid out on the policy, ask them to take that route instead.

Insider101

moneycookie wrote: »

Back in 2005 I took out a personal loan with Nationwide and was mis-sold PPI.

In 2007 I was made redundant. After the sale of my house I paid a settlement on the loan to close the account (i.e. not in full) as I didn't realise that I had PPI and could have claimed it through that insurance.

I spoke to Nationwide directly who agreed it was mis-sold and have sent me an offer.
However, this amount will apparently be knocked off the remainder of the loan despite it being "settled"

My questions are:
1. If I could have claimed on my PPI for the loan could I still do that now? As the remaining on the loan at the time was over £4000 and isn't that what PPI is for? Or alternatively is there a way to go back to them with a counter-claim or something?

In theory possibly, however, you would need to be able to prove the date of redundancy and that you were registered at the jobcentre during the period of unemployment. This would be done by contacting the insurer, not the lender.

2. As the statue of limitations are now in effect as it was over the 6 year limit is it still obligated to go against the loan? The so called balance on the loan is roughly equal to the settlement they've offered me so I'll end up with nothing. SO I've had PPI and I've ended up paying in full anyway and get no compensation whatsoever for the mis-selling.

You don't get "compensation for the mis-selling". That's not how it works. You get put back in the same position you would have been had you never been sold the PPI to start with. Hence, if the refund is approximately equal to the balance then your loan is settled in full. Sounds reasonably fair. The six year thing is a legal matter, best to ask a lawyer.