PPI can anyone answer a fairly simple question

[sythe]

Is it legally possible for a bank to add the entire PPI fee to a loan oustanding balance, if the loan goes into default?

[noomill060]

More infomation needed, karenruth

[dx100uk]

i think you might find the multiple agreements thread in the PPI? forum interesting reading on thissubject.

typically though, loans with ppi have them lumped together anyway, be them front loaded or monthly paid

but yes more info please

dx

[sythe]

Hi dx

When I took out the loan in question, the repayment terms were as follows :

60 repayments of £182.94....comprising £146.95 for Main Loan repayments and £35.99 for Insurance repayments.

I went into default 10 payments into the aggreement, and continued to make reduced payents up until 18 months ago, when I first started querying the outstanding balance.

My point is that since the loan went into default it would seem to me that the insurance policy would have been cancelled, as I was not making payment to it. Therefore since I have made no claim on the policy, why am I being expected to pay for something I have not actually owned or received any benefit from.

I think my query is both reasonable and logically sound. However until I get a copy of the original signed credit agreement and a statement of the account I cannot properly discover whether or not my point has any real validity.

krj8

[dx100uk]

your situation is no diff from 100's of others
the ppi would not of been cancelled , its how they make loads of money out of you!.

i would start a mis-sell on the ppi, look in the top of the ppi section, lots of guides and calculators there.
get this refunded [+ interest!] then get the charges done + interest, and i bet you'll find the balance almost goes.

as for paying off the balance see if the agreement is enforceable first.

dx

[sythe]

Hi dx............thanks..... .I will do.

krj8

[noomill060]

Did you even ask for PPI? Is so, how?

In other words, was it just a tick on an application form?

Do you have a copy of the credit agreement? If not, send them a CCA request along with the £1.

[sythe]

hi.....noomill...
I wrote to them last april last year, as soon as I did that the DCA bottled out.......FOS are dealing with it at the moment. I've just repeated my request directly to the bank. I haven't offered to pay the statutory fee, as I am waiting for them to respond to my question about why the DCA involved did not pass my rquest to them last year.........I haven't paid anything to this account for 18 months..........so I think if they could have enforced this debt they would have by now.

krj8

[noomill060]

Did you send them a CCA request?

[Sparkie1723]

I give this advice to everyone with regards to CCA requests it is useful sometimes, but all they are obliged to supply is a copy of the agreement, I suggest that an Subject Access Request is the best method of getting the information ..........under this they have to supply you with everything and includes a copy of the signed original agreement, terms and conditions...........with out the original a creditor is up a blind alley and you will know they are from the offset.............this is only my view............if they do not supply you with a copy of the executed agreement under your Subject Access Request...they cannot produce it in court as evidence as that would be considered "Fraud".... concealment of documents under the New Fraud Act 2006.

sparkie

[sythe]

hi noomill.................. I haven't CCA'd the actual creditor yet.........I will in the fullness of time.........I've just twigged to the whole DCA/creditor game..............since I haven't made any payments to this account for 18 months now i don't see that there is any rush...........krj

[noomill060]

the reason asked, is that the agreement would tell you how you agreed to the PPI. If miss-sold, the entire agreement, both PPI AND Credit Agreement would most probably be fatally flawed and put you in a very strong position to sue for all losses and PPI premiums and charges and interest...

Worked for me and got entire "debt" wiped off the face of the planet