Missold PPI on both a statute barred debt and unpaid loan

vjohn82 · 17th March 2010, 17:33

Hi all,

Question from a family member had me stumped...

My cousin took out a loan in 2002 with HFC... was subsequently sold PPI autolinker.com autolinking image

despite him being told that the loan was conditional upon him taking PPI (a HFC tactic I am led to believe).

He defaulted on the payments in Dec 2003 and has made no payments in that time or acknowledged the debt. However, he paid a significant amount of PPI premiums at the start of the loan (some £800).

The loan itself is suspected to be statute barred autolinker.com autolinking image

(I have looked and it more than likely is).

Does he still have a valid PPI claim?

Thanks in advance!

ozzywizard · 17th March 2010, 17:54

Quote:

Does he still have a valid PPI autolinker.com autolinking image

claim?

haha, okies in my opinion . . .

Yes he does, first we will assume the loan is statue barred under the limitations act 1980 so it still exists in principal but they cannot enforce the debt etc etc . .

The missold PPI is not statue barred from his point of view as in referance to the same limitations act 1980 section 32C the right of action is that the clock can only start ticking from when he became aware of the missold PPI.

Once a debt is statue barred it will stay time barred autolinker.com autolinking image

, the claim of PPI will not affect that and the PPI is claimable, however the challenge we have is on response from them acknowledging the claim they can take the monies owed to you for missell to pay the arrears which will probably be the full amount as not paid for 6 years plus and they can do this . . but worth doing all the same.

vjohn82 · 17th March 2010, 18:06

Thanks for your opinion Ozzy...

I was of the opinion that they would use the PPI autolinker.com autolinking image

reclaimed amounts to cover the arrears. But then the loan and PPI were designed to be completely separate products and therefore should be administered separately.

In addition if a product has been missold the restitution autolinker.com autolinking image

would surely be on the basis of that product alone.

You make sense... I would be inclined to agree with you but I would have thought the above would apply? What do you think?

ozzywizard · 17th March 2010, 18:14

I totally agree that they are seperate products and the restitution autolinker.com autolinking image

should be on the one unique product alone, so this states that they cannot take your monies and pay off a loan or anything else owed to them, but if an account is in arrears they can and will use the monies to clear it up. I agree it is wrong but as far as the fos autolinker.com autolinking image

, FSA and also if it went to court this would be the outcome.

Depending on a companies own legal advise they may not pick up on this and pay it out but if they do and offer full refund plus interest autolinker.com autolinking image

then they do have the right to pay off the arrears owed before paying you.

Once offer is made and if it goes the way I suggested we can certainly try to argue it and put a letter together but if it goes further we will probably lose. . . If anyone else has any other suggestions or a way around this then please jump in.

vjohn82 · 17th March 2010, 19:41

I'm thinking along the same lines as you... but let's throw another thing into this.

The original debt has been sold to a DCA autolinker.com autolinking image

(namely Aktiv Kapital) who understand that the debt is statute barred autolinker.com autolinking image

.

I know, from research of the CCA, that the new owner can collect the benefit of the assigned contract but the previous lender is responsible for the obligations. I will have to find out where I got this from but it should be close to hand.

Therefore what do you think would be the status of the PPI autolinker.com autolinking image

claim in that scenario?

ozzywizard · 17th March 2010, 20:35

Quote:

I know, from research of the CCA, that the new owner can collect the benefit of the assigned contract but the previous lender is responsible for the obligations. I will have to find out where I got this from but it should be close to hand

No need thats right. .

Quote:

The original debt has been sold to a DCA autolinker.com autolinking image

Ah, now that changes things. . . If the debt is sold and the PPI autolinker.com autolinking image

claim is rightly claimed against the orriginal creditor then refund has to be done via cheque as creditor has given up all rights to the debt. . winner takes all. They no longer own the debt to pay themselves their arrears. . . to allow the claim and pay themselves for arrears they do not own would be nothing less than fraud. To pay the DCA would not benifit them and would then breech Data Protection Act as it does not concern them as to your balance. . .

vjohn82 · 17th March 2010, 20:40

Just as I thought... nice one Oz

ozzywizard · 17th March 2010, 20:49

No worries, we get there in the end. Keep us informed on how this one goes if you will. If I miss the thread mail me at my username at consumeractiongroup.co.uk . good luck, its an interesting one. Let me know if you need help on it, dont mention statue barred in the first PPI autolinker.com autolinking image

claim letter you send as its not an issue till they make it an issue, stick to a simple claim letter and use it as a defense.

17th March 2010, 17:33	#1 (permalink)
vjohn82 Classic Account Holder Help the CAG!! Make a contribution Your bank owes you an awful lot more money than you realise See here Cagger since : Mar 2009 I am in: the Earth's biosphere Posts: 2,934	Missold PPI on both a statute barred debt and unpaid loan Hi all, Question from a family member had me stumped... My cousin took out a loan in 2002 with HFC... was subsequently sold PPI despite him being told that the loan was conditional upon him taking PPI (a HFC tactic I am led to believe). He defaulted on the payments in Dec 2003 and has made no payments in that time or acknowledged the debt. However, he paid a significant amount of PPI premiums at the start of the loan (some £800). The loan itself is suspected to be statute barred (I have looked and it more than likely is). Does he still have a valid PPI claim? Thanks in advance! __________________ First they ignore you, then they laugh at you, then they fight you, then you win “It is better to be roughly right than precisely wrong” “In the long run we are all dead.”

17th March 2010, 18:06	#3 (permalink)
vjohn82 Classic Account Holder Help the CAG!! Make a contribution Worried about companies stealing your signature? Use our new digital signature service Cagger since : Mar 2009 I am in: the Earth's biosphere Posts: 2,934	Re: Missold PPI on both a statute barred debt and unpaid loan Thanks for your opinion Ozzy... I was of the opinion that they would use the PPI reclaimed amounts to cover the arrears. But then the loan and PPI were designed to be completely separate products and therefore should be administered separately. In addition if a product has been missold the restitution would surely be on the basis of that product alone. You make sense... I would be inclined to agree with you but I would have thought the above would apply? What do you think?

17th March 2010, 18:14	#4 (permalink)
ozzywizard Classic Account Holder Help the CAG!! Make a contribution Our auction sniper is now live. Try it for free Cagger since : Jul 2006 Posts: 2,314	Re: Missold PPI on both a statute barred debt and unpaid loan I totally agree that they are seperate products and the restitution should be on the one unique product alone, so this states that they cannot take your monies and pay off a loan or anything else owed to them, but if an account is in arrears they can and will use the monies to clear it up. I agree it is wrong but as far as the fos, FSA and also if it went to court this would be the outcome. Depending on a companies own legal advise they may not pick up on this and pay it out but if they do and offer full refund plus interest then they do have the right to pay off the arrears owed before paying you. Once offer is made and if it goes the way I suggested we can certainly try to argue it and put a letter together but if it goes further we will probably lose. . . If anyone else has any other suggestions or a way around this then please jump in.

17th March 2010, 19:41	#5 (permalink)
vjohn82 Classic Account Holder Help the CAG!! Make a contribution Protect your signature with SignGuard Cagger since : Mar 2009 I am in: the Earth's biosphere Posts: 2,934	Re: Missold PPI on both a statute barred debt and unpaid loan I'm thinking along the same lines as you... but let's throw another thing into this. The original debt has been sold to a DCA (namely Aktiv Kapital) who understand that the debt is statute barred. I know, from research of the CCA, that the new owner can collect the benefit of the assigned contract but the previous lender is responsible for the obligations. I will have to find out where I got this from but it should be close to hand. Therefore what do you think would be the status of the PPI claim in that scenario?

17th March 2010, 20:40	#7 (permalink)
vjohn82 Classic Account Holder Help the CAG!! Make a contribution We need funds Please donate something Cagger since : Mar 2009 I am in: the Earth's biosphere Posts: 2,934	Re: Missold PPI on both a statute barred debt and unpaid loan Just as I thought... nice one Oz

17th March 2010, 20:49	#8 (permalink)
ozzywizard Classic Account Holder Help the CAG!! Make a contribution Worried about your signature being copied onto CCAs etc? Use SignGuard Cagger since : Jul 2006 Posts: 2,314	Re: Missold PPI on both a statute barred debt and unpaid loan No worries, we get there in the end. Keep us informed on how this one goes if you will. If I miss the thread mail me at my username at consumeractiongroup.co.uk . good luck, its an interesting one. Let me know if you need help on it, dont mention statue barred in the first PPI claim letter you send as its not an issue till they make it an issue, stick to a simple claim letter and use it as a defense.