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Citi Financial

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Hi my name is Lucy, I took out a loan with Citi Financial in 1999 for £15k. To cut a loan story short I got in to a bit of problems paying it back. The case went to court in 2007 and because of the interest that I had paid on the loan and the amount that I had paid back I won the cases in 2009 the court said that the loan was unlawful.

In 2013 I received a letter from Citi stating that I had PPI of £18k due back to me but because I had an outstanding amount on my account owing them the were going to offset the PPI to get rid of this amount.

Is this right? Can this be done after the courts have said that the loan was closed and I no longer needed them any more ???

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  • Hi my name is Lucy, I took out a loan with Citi Financial in 1999 for £15k. To cut a loan story short I got in to a bit of problems paying it back. The case went to court in 2007 and because of the interest that I had paid on the loan and the amount that I had paid back I won the cases in 2009 the court said that the loan was unlawful.

    In 2013 I received a letter from Citi stating that I had PPI of £18k due back to me but because I had an outstanding amount on my account owing them the were going to offset the PPI to get rid of this amount.

    Is this right? Can this be done after the courts have said that the loan was closed and I no longer needed them any more ???
  • [Deleted User]
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    In 2013 I received a letter from Citi stating that I had PPI of £18k due back to me but because I had an outstanding amount on my account owing them the were going to offset the PPI to get rid of this amount.Is this right?
    Yes, the offset was correct four years ago and still correct today.
  • Really even after the court discontinued the loan because I had paid the loan back 5 times.

    Also would I still owe them money?
  • [Deleted User]
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    How can you have paid back the loan "5 times"?

    Why are you asking only now, four years on?

    This sounds like something only your Bank will be able to provide a comprehensive response to.
  • What I meant by paid back 5 times was that I had paid back at least £60k as to why the court had said that the loan was unlawful and that I no longer had to pay the loan, so how could Citi recover any money from me if that was the judgment?

    I have only just found this forum, thought that I would ask

    And the solicitor that I used for the case said that Citi should not have been able to do that
  • dunstonh
    dunstonh Posts: 116,859 Forumite
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    Just because the courts decide a debt is unenforceable does not mean you do not owe the money. The debt with the firm still exists. It just cannot use any legal means to come after you for it.

    PPi redress is allowed to be used against debts in arrears, defaults or amounts written off.
    And the solicitor that I used for the case said that Citi should not have been able to do that

    In which case, you need to pay that solicitor to take on your case and see it through court as he/she believes you have a case.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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