Signed contract invalid, new one issued - is this legal?

b_Steppy

Hi,

My mother is attempting to claim back her PPI for a loan taken out. The loan was under my dads name but he passed away so she is claiming. They issued her a letter confirming the amount and asking her to sign and return. She did this and they have acknowledged receipt of the letter. However they have since contacted her and told her that the previous letter was invalid and to sign a new letter. The amounts is the same and the majority of the terms but the have added an additional clause stating that all amounts previously owed to them will be deducted from the amount due. This was not stipulated on the original letter. We are not sure if there is a balance owed as my parents were separated. The reason for this post is to establish is this is legal as a previously letter was signed, posted and received. Thanks

amersall

They can take any amounts owing from the redress.
This is common practice, there may not be any amounts owing.

b_Steppy

thanks for the reply, it was more reference the fact that a legal letter was signed and received, and now they are stating that this is invalid. Are they able to do this as essentially terms were previously agreed.

dunstonh

If your father died and the debt was not paid in full from his estate, then they are allowed to offset the capital part of the redress (the PPI premium) against any debt that went unpaid.

They can do this without permission and dont need that in the letter. Its normal and requires nothing from your mother. They are just belt and bracing it to effectively show that she acknowledges what can happen.

b_Steppy

Thanks both for the useful advice

b_Steppy

Sorry, one more question please. The letter states that if the amount owed by my father exceeds the PPI amount, she will be held liable for the additional balance. Is this common practice and also can she be held accountable for the debt (if one exists).

dunstonh

b_Steppy wrote: »

Sorry, one more question please. The letter states that if the amount owed by my father exceeds the PPI amount, she will be held liable for the additional balance. Is this common practice and also can she be held accountable for the debt (if one exists).

Now that is wrong. She has no liability of the shortfall, if there was one.

b_Steppy

That is what I suspected, thanks for confirming.

zaax

dunstonh wrote: »

Now that is wrong. She has no liability of the shortfall, if there was one.

Her husbands estate is liable for any debits and if she had anything from her husbands estate that will have to go back to cover the debit.

dunstonh

I was actually wondering after this if the bank suspect that there were joint assets or distributions from the estate.

Thrugelmir

dunstonh wrote: »

I was actually wondering after this if the bank suspect that there were joint assets or distributions from the estate.

Sounds as if the debt wasn't settled in winding up the estate.