PPI and consequential loss redress due to tarnishing of credit history

Foraant

Hi am a newbie to the site so please forgive if this topic has been raised in any previous forums.

I would like a broad insight or view in terms what relationship a PPI redress claim has with seeking additional compensation for consequential losses and examples of these, if there any.

Would I be right to assume that a consequential loss could be someone’s credit history gets tarnished after taking out a loan that has PPI which you then default on due it being unaffordable and it never allowing you to claim in the first in any ASU circumstances?

I understand the element of seeking a redress payment from a PPI claim relates to it being misold to you in the first. But assuming the policy was never suitable for you in the first place, and your circumstances negatively change during the term of the loan or any credit agreement in which you default, is a consequential loss and thus additional compensation warranted given that you for at least 6 years or more, you are/were deprived of obtaining additional credit?

Many thanks in advance for all upcoming replies.

[Deleted User]

The PPI cost was so low, it would not be the root cause of a default.

There would be no further compensation.

[Deleted User]

Deleted_User wrote: »

The PPI cost was so low, it would be the root cause of a default.

I'm certain you meant to say that it would NOT be the root cause of a default.

Foraant wrote: »

I understand the element of seeking a redress payment from a PPI claim relates to it being misold to you in the first. But assuming the policy was never suitable for you in the first place, and your circumstances negatively change during the term of the loan or any credit agreement in which you default, is a consequential loss and thus additional compensation warranted ?

No.
PPI redress is defined as a full refund plus interest. This puts the complainant back into a similar position that they would be had they had no PPI. The interest is the only compensatory element.

So there is no "consequential loss" to be awarded here.
Sorry.

-taff

Foraant wrote: »

Would I be right to assume that a consequential loss could be someone’s credit history gets tarnished after taking out a loan that has PPI which you then default on due it being unaffordable and it never allowing you to claim in the first in any ASU circumstances?

No. If you default on a loan, it's highly unlikely the added amount of PPI wuld cause you to default.

And if you are complaining about PPI, what you're saying is that you didn't want the product in the first place, so the redress is to put you in a position as if you had never had it.
So even if you could claim on it when whatever event happened happened, you're still saying now in your complaint, that you didn't want or need it.

If you needed to claim on it for some event, then if the PPI didn't cover you for that event, it would not have paid out, and you would have been in the same position.

dunstonh

Would I be right to assume that a consequential loss could be someone’s credit history gets tarnished after taking out a loan that has PPI which you then default on due it being unaffordable and it never allowing you to claim in the first in any ASU circumstances?

No.
It is more along the lines of the PPI premium took you about your credit limit that month and you incurred a charge.

You do see it sometimes occur on credit card PPI where they include some redress for that. However, in the vast majority of cases, the monthly cost of PPI is too low to cause any major issue.
i.e. if the loan was £15pm higher in cost with PPI then its not going to be the difference between defaulting or not.