Old PPI Claim

NeilV

Hi,
I had a consolidation loan from HFC, because I was in a lot of debt, I actually defaulted on this as I was really able to make the payments but I had very little alternative, as part of this I remember being told that I would not get the loan if I did not 'opt' for Payment Protection.

Long story short, as I didn't pay the loan, it eventually went to court I have been paying by attachment to earnings. I will have paid back over £19,000 over the last 6-7 years, the last payment will go out of my Feb pay packet. Does this mean that I will then be able to claim for the PPI I have paid. I am ashamed to say that @ one point I was so distraught by the level of debt that I was in, that I shredded practically every piece of paperwork I had, so I have no details & I'm not sure if HFC Bank are still trading. Does any of this change my ability to claim.

Thanks in advance

magpiecottage

Complaints against HFC can be directed to HSBC.

However, there needs to be evidence to support your allegation.

As you have shredded all your documentation it seems that you will not have any and I think it unlikely that HSBC will either.

sun73

As you are still repaying the loan there should be some information held by the lender. Try HSBC PPI department who took over from HFC. Did they sell the debt to another business before it went to court?
Have you asked the courts if they hold any details such as a reference number, a copy of the original credit agreement? If you can find this it will show if the loan was set up as a single, upfront ppi premium which you can use in your complaint. You've already got proof of payment with the deductions from your wages. Best of luck.

[Deleted User]

Do be aware that even if you manage to succeed with a mis-selling complaint, any amount written off as part of your default is very likely to be offset against any redress awarded. Only if your redress is more than the amount unpaid do you stand to gain.

NeilV

sun73 wrote: »

As you are still repaying the loan there should be some information held by the lender. Try HSBC PPI department who took over from HFC. Did they sell the debt to another business before it went to court?
Have you asked the courts if they hold any details such as a reference number, a copy of the original credit agreement? If you can find this it will show if the loan was set up as a single, upfront ppi premium which you can use in your complaint. You've already got proof of payment with the deductions from your wages. Best of luck.

Hi, thanks for the response. I am not sure if the debt was sold, does this make a difference? I will have the details of the Attachment which will undoubtedly have a reference but I haven't contacted the court yet. I wasn't sure if I would get a letter of satisfaction for a debt settled in this way

dunstonh

I am not sure if the debt was sold, does this make a difference?

If it was sold and cannot be transferred back then they cannot use the redress to offset the old debt. If it was not sold but they are using the third party company for collections then it can be offset or it it was sold but can be transferred back then they can offset it.

NeilV

Moneyineptitude wrote: »

Do be aware that even if you manage to succeed with a mis-selling complaint, any amount written off as part of your default is very likely to be offset against any redress awarded. Only if your redress is more than the amount unpaid do you stand to gain.

Hi, Sorry, I may be being a bit dim, I didn't understand the bit about redress. I have now found the Original paperwork which even details the amount of 'Family Care' or whatever they call it.

I'm not sure how this will affect my claim but the original loan which I eventually defaulted on was sold by a high street bank to a company called TBI financial services. I was these people who took me to court & I have paying by attachment to earnings for the last 6+ years. Does that mean that the original loan was completely settled by TBI financial services years ago? Does it invalidate my claim, would thay have bought it for a reduced price and does that affect my claim?

As I have paid a total of £19,000 I'm eager to get the ball rolling before it's too late. I assume that I still contact the original bank in the first instance but Do I mention that the debt was sold? If I say to them that I have now finished paying all of the money back, will they be confused as they received payment many years ago?

dunstonh

I'm not sure how this will affect my claim but the original loan which I eventually defaulted on was sold by a high street bank to a company called TBI financial services.

Was it actually sold to them with no clawback rights or did they employ them to carry out the debt recovery? A lot of people who use the phrase "sold" just assume that because its a different company chasing the debt. However, in many cases, it is just a commercial arrangement between the bank and the collection agency. It makes a difference to the outcome.

assume that I still contact the original bank in the first instance but Do I mention that the debt was sold?

You dont need to tell the bank what happened to the debt. They will know.

NeilV

Hi, Thanks for your prompt response. Among the court documents was a sworn statement from TBI Financial Services that the debt had been bought by them. I don't have the document on me,so I can't remember the exact wording but what should I be looking for with regards "no claw back rights"? and how does this affect my claim?

dunstonh

You wont know if there are clawback rights until the complaint outcome is known.

If the debt was sold with no clawback rights then the bank has to refund all to you (none to the collection company)

if the debt has clawback rights then the bank can take the debt back from the collection company and offset the redress payment (the refund) against that.

if the debt has been settled in full (with no amount written off as a reduction) then you would get the payment in full. If the redress payment is greater than the debt outstanding/written off figure, then you would get the surplus above that.

NeilV

As far as I can see, the amount I have paid back, is more than the original debt. But I suppose the amount paid for the debt could have been anything? Don't want to put figures on a public website. I'm going to take some pictures of the docs tonight so I can be accurate when I ring them but I paid back nearly 3 times what I originally borrowed so my impression is that they paid the full price for the debt in the first place.