Debts caused by PPI not being honoured 22 June 2017 at 8:03PM edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges 21 replies 3.1K views

mswsussex

Good evening fine people.
It may have been mentioned here before but I cant find anything on it (probably not looked hard enough)

I had loans with PPI through TSB, Black Horse and Lloyds TSB which I have successfully reclaimed on (which was mainly spent on debts) due to miss selling on the grounds that I was working in engineering at the time of taking out the loans and in that area most jobs are subcontractor roles or through agencies so it wasnt suitable as I wouldnt be covered.

I found out the hard way when a contract ended and I struggled to find a new role and tried to make a claim and they basically said no. This didnt help as you can imagine and soon added up in bounced debit fees, unauthorised overdraft fees and interest.

Now debt collectors and solicitors are chasing me for aprox £3500 for the Lloyds TSB overdraft. Im not saying the whole amount was caused by them reneging on the PPI but I imagine a fair amount was, as they have paid out on the claims I made is it fair that I should be expected to pay the debt collectors? Has anyone else had anything simular?
I really dont know where I stand.

dunstonh

You have had your refund of premiums plus interest. So, you had the money back you paid. Anything else is debt built up by you on other things.

They have no requirement to pay out on claims you were not eligible for. Refund of premium plus interest is the correct outcome here.

mswsussex

Even though a percentage of the financial hardship and subsequent debts were caused by a Lloyds group company (Black Horse) directly by not honouring the PPI policy they sold me to cover me in this kind of event?
For example keep trying to take monthly installments on a loan causing bounced debit fees, interest on an authorised overdraft then beond that into an unauthorised overdraft and the interest that builds up.

My point being if they had honoured the PPI claim (to cover my loan payments at the time of my unemployment) the overdraft amount would have been much lower and not caused so much financial difficulty.

So basically they have caused some of/most of the debt by incorrectly selling me a product that was not fit for purpose and then punishing me for something they have admitted they were wrong in selling me?

[Deleted User]

I'm afraid the redress for mis-sold PPI is defined as a refund of the premiums paid plus interest.

You cannot claim additionally for (spurious) consequential loss.

mswsussex

So them admitting they miss sold a product and the knock on effects of that mean nothing?

mswsussex

Oh and by saying (spurious) i take it from the definition of the word you mean that my claim that the debt being caused by the failure of them to pay the claim is false or not genuine?

I work in the motor industry (motorcycle technician) and im sure if something in my line of work incorrectly that had direct consequences on a customer that would come back on me? If I did something that caused someone loss of earnings (or injury or worse) I would expect to be liable

[Deleted User]

mswsussex wrote: »

the knock on effects of that mean nothing?

Any debts you have are your own responsibility and I think you'd find it very hard to prove a direct correlation between the amount you currently owe and the PPI you were mis-sold.

This really isn't up for discussion. To repeat, PPI redress is defined as a full refund of the policy plus interest, no more and no less.

Remember, though, it's not this forum you have to convince.

mswsussex

So in layman's terms the fees I was charged by my bank for them bouncing their own direct debits for a loan i wouldnt have taken if i knew the insurance wouldnt cover me if and when i lost a job are my responsibility?

You sound like you know more about the financial sector than me so thanks for the info even though I cant say that it entirely sounds fair that banks can do that.

The only example I can think of in my line of work would be me selling someone the wrong product for their motorcycle (say oil) it goes bang and i say sorry you have to foot the repair bill even though I knowingly sold the wrong product?

[Deleted User]

mswsussex wrote: »

The only example I can think of in my line of work would be me selling someone the wrong product for their motorcycle (say oil) it goes bang and i say sorry you have to foot the repair bill even though I knowingly sold the wrong product?

Except that what you are suggesting is like having a refund on that motor oil (with interest) and then demanding the cost of numerous subsequent journeys because you still owe the petrol station for fuel?

mswsussex

No im suggesting it would be wrong for the said customer to foot the bill for the cost of repairs that were due to my mistake.
Or are you suggesting it would be fair to refund the oil and possibly replace with the correct oil and not repair the damaged caused by my mistake

[Deleted User]

I'll leave you to it, this discussion is futile.