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  • FIRST POST
    • James McKinnon
    • By James McKinnon 19th Aug 19, 1:47 PM
    • 3Posts
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    James McKinnon
    Mis-Sold Loan
    • #1
    • 19th Aug 19, 1:47 PM
    Mis-Sold Loan 19th Aug 19 at 1:47 PM
    I had a loan from a major bank, when the loan was taken out a separate account was created with a negative balance. This balance was the total amount of capital loaned along with the total interest to take the loan to full-term as well as the total PPI to take the loan to full term.

    I refinanced this loan and was given no reduction in the amount of the total balance. Surely if PPI was being stopped that day it wasn't required to be paid to full term (in effect a policy running with no payment to protect.) I enquired why they hadn't reduced the balance and they said it wasn't reduced because they weren't charging any early payback fee on this.

    Surely if the PPI was ended then I should not be financing the unpaid premiums in the new loan. I refinanced the loan 6 times, each time the remaining negative balance was the capital loaned plus interest. This then led me to extend the loan repayment to 7 years (from 5) in order to make the repayments. This effectively meant that PPI in the 1st loan was refinanced 6 times.

    Is this legal or was I mis-sold the loan due to an inaccurate balance?
Page 1
    • Nearlyold
    • By Nearlyold 19th Aug 19, 2:30 PM
    • 1,380 Posts
    • 1,241 Thanks
    Nearlyold
    • #2
    • 19th Aug 19, 2:30 PM
    • #2
    • 19th Aug 19, 2:30 PM
    When was this?

    Was this a business loan?

    Was this single premium PPI added to the loan?

    Surely the balance must have reduced at least by the amount of the payments already made?
    • James McKinnon
    • By James McKinnon 19th Aug 19, 2:42 PM
    • 3 Posts
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    James McKinnon
    • #3
    • 19th Aug 19, 2:42 PM
    • #3
    • 19th Aug 19, 2:42 PM
    It was a personal loan, the PPI was explained as an extra monthly amount. The negative balance reduced by the payments every month.
    • Nearlyold
    • By Nearlyold 19th Aug 19, 2:51 PM
    • 1,380 Posts
    • 1,241 Thanks
    Nearlyold
    • #4
    • 19th Aug 19, 2:51 PM
    • #4
    • 19th Aug 19, 2:51 PM
    Have you still got the paperwork? Its not clear from your reply if the PPI was single premium (which would be in the balance) or regular premium PPI which wouldn't be in the balance. Which bank? What dates were the loans taken out?
    • James McKinnon
    • By James McKinnon 19th Aug 19, 2:57 PM
    • 3 Posts
    • 0 Thanks
    James McKinnon
    • #5
    • 19th Aug 19, 2:57 PM
    • #5
    • 19th Aug 19, 2:57 PM
    The PPI was worked out as at a Monthly rate then multiplied by the duration of the loan and added to the balance. The bank was RBS and I don't have any paperwork.
    • MEM62
    • By MEM62 19th Aug 19, 3:39 PM
    • 2,785 Posts
    • 2,470 Thanks
    MEM62
    • #6
    • 19th Aug 19, 3:39 PM
    • #6
    • 19th Aug 19, 3:39 PM
    I don't have any paperwork.
    Originally posted by James McKinnon
    Then, if there is a case of miss-selling, you may struggle to prove your case. You'll need something to back it up.
    • sourcrates
    • By sourcrates 19th Aug 19, 3:40 PM
    • 18,249 Posts
    • 17,167 Thanks
    sourcrates
    • #7
    • 19th Aug 19, 3:40 PM
    • #7
    • 19th Aug 19, 3:40 PM
    Another angle to this, if you want to get in a claim for mis-sold PPI, you have 10 days left to do so.
    However, in order to progress your complaint, you would have to submit a subject access request to RBS, they can take up to 40 days, so i think your out of time on that one.

    You can still submit a SAR and see what was going on with your loans though.

    Having said that RBS will check to see if PPI was added to your loans for you, so it may still be worth complaining, but do it quick.

    See here :

    https://personal.rbs.co.uk/personal/support-centre/how-to-complain/ppi-complaints.html
    Last edited by sourcrates; 19-08-2019 at 3:48 PM.
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