Increased Debt and a CCJ because of PPI claim

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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ThreadyThready Forumite
52 Posts
Part of the Furniture 10 Posts Combo Breaker
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hi All,

Please bear with me as this is a long and winding road, and forgive me if I miss any information, I was at the time of this happening, going through a very difficult time and am a little hazy on some of the detail.

A number of years ago, when reclaiming PPI was just beginning to become news, I was advised by an independent financial adviser to check for PPI on my credit cards. I had had a number over the years and being recently divorced with a lot of debt, I decided to take his advice and use the firm of solicitors he had used for a successful claim he had made himself.

The firm advised me that they would charge me a one off flat fee per card to take on the case and and compensation would be mine in it's entirety. Although I could ill afford the fee, I paid.

I have done many things wrong in this process however one thing I have done correctly all of my adult life is to keep paperwork, I was therefore able to send them copies of all of the original credit agreements and was told I should have a good chance of success on at least one credit card. I sat back and waited for the process to play out.

I was a little concerned that after about 3 months I hadn't heard anything, so contacted the solicitors and was informed that the delay was quite normal, as all of the cards had current outstanding balances the card issuers didn't have any incentive to respond to their enquiries as I was paying them every month, however, in similar cases they had arranged client accounts for clients to pay the monthly payments into, and that this had had results in speeding up the responses from the card issuers. This seemed reasonable, therefore I arranged to transfer my direct debits into the client account.

Again a number of months passed, the 3 cards concerned were Post Office, Barclaycard and Capital One. Barclaycard sent my monthly statements with a late payment charge added and because I banked with Barclays took the payment from my account anyway, Capital one were quite aggressive and sent increasingly worrying correspondence which resulted in letter stating that they had instructed a collection agency. Again I contacted the solicitors who said not to worry and to give them their details should they knock on my door, which in due course they did, and in fairness, when I explained that the account was in dispute and gave them the solicitors details went away. This however did not stop Capital One, who then proceeded to issue a county court writ and I recieved a CCJ with a charge on my house.

When I was able to finally get something like some concrete [and written] information from the solicitors, I was informed that none of my cards were eligible and the funds in the client account were returned. However, by this time the debts on all of the cards were significantly higher than they would have been had I continued to pay them plus I had a CCJ and a charge on my house.

Because I was in a dire situation both financially and emotionally, I clearly wasn't remotely on top of this situation, but wonder if there is anything that I should and could do now that I feel I am strong and determined enough to fight back?

Again apologies for the length of this post, I know I have been silly and a complete ostrich, but and information and/or advice would be very welcome.

TIA

Replies

  • jelliejellie Forumite
    876 Posts
    Eighth Anniversary 500 Posts Name Dropper
    ✭✭✭
    Make a formal complaint to the solicitors - they should never have told you to stop paying your credit card bills direct. The PPI complaint was separate to your outstanding credit card debt.

    Then if necessary, go to the legal ombudsman.
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