PPI and old loan

oshb5

Hello I had a loan many years ago well quite a few but the last loan was quite substantial and I had a heart attack and never went back to work so this loan never got repaid. But it looks as though Iv had PPI against it and they have given me a figure. And Iv seen where it says any PPI owing will go against what you still owe? Which is understandable. However last July the bank sold this debt on so they in fact washed their hands of it and are no longer anything to do with the debt. So I’m wanting to know what happens in this situation please?

Thank you Osh

[Deleted User]

oshb5 wrote: »

However last July the bank sold this debt on so they in fact washed their hands of it and are no longer anything to do with the debt. So I’m wanting to know what happens in this situation please?

The likelihood is that the Bank will still be able to offset any PPI refund against the monies you still owe.
Although you may believe the Bank has sold the debt on to a debt recovery agent, there is usually an arrangement in place to deal with exactly the circumstance you describe.

SonOf

If the bank is using a third party collection agency but didnt actually sell it then they can offset the redress

If the bank has the right of clawback, they can offset the redress

If the bank has no right of clawback then they cannot offset the redress. Although they can inform the collection agency of the payment so they know you will have the money to pay them.

Bad debts sold years ago often had no right of clawback. Thanks to the FOS decisions, a number of the banks put in place clawback agreements with their debt collection companies.

oshb5

Hi

Yes I have the paperwork from the bank with the balance on and also from the bank. Where in the paperwork it say.

“On 1st July 2019 your account was assigned to XXXXX Financial ltd who are now the legal owners of the debt.”

So that is what I have and the reason I asked the question. If I’d not got this I would not have even bothered asking as I knew it would go to the debt.

There is also one other thing that has just puzzled me and that is as they say Iv got around 2,5k to come back which still would not clear the debt. But if they own me this PPI pay out. How come the PPI did not do as it was supposed to and pay the debt. As that is what PPI is supposed to be for is it not?

Best regards. Osh

[Deleted User]

oshb5 wrote: »

How come the PPI did not do as it was supposed to and pay the debt. As that is what PPI is supposed to be for is it not?

When you contacted them to claim on the policy at the time, what reason did they give you for it not paying out?

[Deleted User]

oshb5 wrote: »

How come the PPI did not do as it was supposed to and pay the debt. As that is what PPI is supposed to be for is it not?

PPI is a short term insurance policy meant to assist during periods of sickness or unemployment. It was never intended that the policy pay off the entirety of your debt.

Deleted_User wrote: »

When you contacted them to claim on the policy at the time, what reason did they give you for it not paying out?

I don't think the OP ever claimed on the policy..

oshb5

You might be right in regard to the PPI as it was quite a hectic time and lasted many many months from the original heart attack to the bypass surgery not working and being left unable to do much at all. And took some coming to terms with. So at the time I possibly never claimed ?

Thank you regards Osh

[Deleted User]

oshb5 wrote: »

So at the time I possibly never claimed ?

As already advised, the insurance would not have paid your debt outright, but simply covered your loan repayments for a (limited) period of time. When you subsequently defaulted on the loan, the PPI would have been automatically cancelled.

Note that you can't complain that the PPI never paid out if you never actually made a claim...

Regardless, your PPI mis-selling complaint was upheld and you are awarded a refund plus redress.

However, only the Bank can say for sure if they have maintained clawback rights on your sold on debt, but it seems very likely they did given how recently the debt was sold on...

oshb5

Thing is that the amount I’d have for from the PPI less the 20% to the company that helped me get it might have been enough of an amount to offer the now owners to fully settle the outstanding debt as at the moment with what I can afford is going to take somewhere in the region of 200 years and yet with my ever worsening health I’d feel it a fete to even get to my retirement which is about 4 and a half years.so it would have been nice to see if that was or could have been the case. We will see. But then there will be another bill outstanding in that the company that helped want nearly £700 and have even calculated their 20%on the full amount before tax was taken off which was over £300. And I’m unsure if I could still claim the tax back as Iv not worked since the mid to late 90s when I first started with my heart and chest problems and lived on my pension so it’s not been a easy go. But looks as though trying to get ahead and to change or mend my current car may well have backfired into me owing another damm bill. Sometimes some people cannot win or get their a break. At All

Anyway thank you all for the wise words. Which I hope could turn out wrong but I think not.

Also finally after Iv just said we cannot win. Well at Xmas I got a message from Plusnet saying it was my renewal time. And Iv been with force9 since the days of 2400baud so we’ll into the mid 20 years And it was on the 24th of Dec and she told me I would get my phone and fibraplus at £3 cheaper and at twice the speed. Great I thought. I left it the 10 days to settle. Did a speed test no change and the same as it’s been for the last 5 years so I messaged CS and a week later still no reply so I rang them and it appears she had forgot to action it. Never mind I say. As that’s the first mistake in 20 plus years. The guy then tells me I should start to see improvement in 72 hours but don’t be shocked if it’s done in the next 12 as it mostly is. That was at 2pm this afternoon. However since 10:30 this evening we have got nothing other than mobile and as I am now connected to next door with their permission of course. But no nothing at all other than my local lan. The TVs are off of smart mode the fire stick and the daughters collage connection. So will have to ring in the morning and see what has gone wrong. Thanks again guys n gals good night/morning. or whatever it may be : :rotfl: :T :A

amersall

But then there will be another bill outstanding in that the company that helped want nearly £700 and have even calculated their 20%on the full amount before tax was taken off which was over £300. And I’m unsure if I could still claim the tax back

If the claims co knew the debt was in default, they should not have taken the claim on.
You can claim the tax back as you are a non tax payer.

[Deleted User]

oshb5 wrote: »

But then there will be another bill outstanding in that the company that helped want nearly £700 and have even calculated their 20%on the full amount before tax was taken off which was over £300.

It's still exceptional value for a stamp though. They're not cheap these days.