Bank error in my favour ... perhaps

[sleeplessella]

I had a loan with PPI but when I have tried to claim on the insurance, the bank says I didn't take PPI, however the agreement and payment arrangements show I did. Bank are investigating but in the meantime, just need to be in the know for when they respond:

If it is found that there has been an error, would this make the agreement unenforceable?

Could I have a claim for breach of contract?

If no PPI has been actioned, then I have been overpaying for the last 5 years. Could I request that the balance of the loan be adjusted to accommodate the over payments. This would pay off the loan and I would not need to claim on the insurance.

Any advice please?

[di30]

Re: Bank error in my favour ... perhaps

Hi there

I am not sure about the unenforceable side of things, but if you have proof you were paying for it, they should therefore resolve this in your favour.

Good luck.

[leclerc]

Re: Bank error in my favour ... perhaps

I had a loan with PPI but when I have tried to claim on the insurance, the bank says I didn't take PPI, however the agreement and payment arrangements show I did. Bank are investigating but in the meantime, just need to be in the know for when they respond:

If it is found that there has been an error, would this make the agreement unenforceable?

Could I have a claim for breach of contract?

If no PPI has been actioned, then I have been overpaying for the last 5 years. Could I request that the balance of the loan be adjusted to accommodate the over payments. This would pay off the loan and I would not need to claim on the insurance.

Any advice please?

If you have no PPI then you have no PPI but if you have PPI you have PPI.

You should not be paying more if you do not have the product. It's not unenforceable by the way because the facts are either (a) PPI or (b) no PPI.

If you have it and believe it to be missold then reclaim it. The only question is whether there is one loan or more where one of them may have had PPI on.

[sleeplessella]

Re: Bank error in my favour ... perhaps

Thanks both for responding so quickly. This was a business loan so if the bank has messed up, it would be difficult for me to claim back the PPI as the company no longer exists. If the bank were able to readjust payments, the excess would pay the loan off.

My last resort would be to try to claim back PPI, but I am not sure what happens to any rebate, would it go into the old business loan feeder account and would this account be accessible to the bank to feed the remainder of the loan payments?

[leclerc]

Re: Bank error in my favour ... perhaps

Thanks both for responding so quickly. This was a business loan so if the bank has messed up, it would be difficult for me to claim back the PPI as the company no longer exists. If the bank were able to readjust payments, the excess would pay the loan off.

My last resort would be to try to claim back PPI, but I am not sure what happens to any rebate, would it go into the old business loan feeder account and would this account be accessible to the bank to feed the remainder of the loan payments?

If the company went into liquidation why did they not cancel the PPI prior to perhaps sending it to collection?
If it had PPI then why did the PPI not pay off the loan.


I think we need more info, ie did the company go into liquidation? Should the PPI policy have covered this? What did the PPI cover? etc, etc,

[sleeplessella]

Re: Bank error in my favour ... perhaps

Sorry for my ignorance but I am not sure what you mean by your first sentence. This was a business partnership which I retired from (sold) years ago but a joint loan had been taken out prior to my leaving. It was my business partner who was paying the loan.

The PPI does not seem to have been cancelled as all statements show loan plus insurance premium paid monthly until the time it defaulted. It defaulted because the business partner died. I never saw a policy but the web site said it covered accident, hospitalisation or death. Unfortunately they have stopped selling and the web pages have been removed.
Not sure what you mean by "sending to collection". It seems the debt was written off as bad debt and sent to recoveries which was when I was contacted with a request for payment. Before that was not aware that the loan was ongoing. I believe that both or either of us may have been entitled to make an insurance claim as I was on long term sick leave and my partner hospitalised in the months prior to the loan defaulting. I was trying to enquire if I could make a claim retrospectively when I was told the loan did not have insurance. I queried this and am still waiting the results of their investigations.

[Celestine]

Re: Bank error in my favour ... perhaps

The web pages may now have been removed but no doubt they were cached and are still visible on the WayBackMachine.

Internet Archive: Wayback Machine

Good Luck

[leclerc]

Re: Bank error in my favour ... perhaps

Sorry for my ignorance but I am not sure what you mean by your first sentence. This was a business partnership which I retired from (sold) years ago but a joint loan had been taken out prior to my leaving. It was my business partner who was paying the loan.

The PPI does not seem to have been cancelled as all statements show loan plus insurance premium paid monthly until the time it defaulted. It defaulted because the business partner died. I never saw a policy but the web site said it covered accident, hospitalisation or death. Unfortunately they have stopped selling and the web pages have been removed.
Not sure what you mean by "sending to collection". It seems the debt was written off as bad debt and sent to recoveries which was when I was contacted with a request for payment. Before that was not aware that the loan was ongoing. I believe that both or either of us may have been entitled to make an insurance claim as I was on long term sick leave and my partner hospitalised in the months prior to the loan defaulting. I was trying to enquire if I could make a claim retrospectively when I was told the loan did not have insurance. I queried this and am still waiting the results of their investigations.

Was the partnership dissolved or transferred?
Were all liabilities transferred at the time?

Sending it to collections means that the loan was defaulted on(so I was going on the theory the business became insolvent).
I think you may need to do a Subject Access Request for all information from the relevant bank including the loan paperwork and then see whether you can claim on the policy retrospectively or even claim for misselling.

[di30]

Re: Bank error in my favour ... perhaps

If the company are no longer active then they may be listed with the Financial Compensation Scheme (FSCS) if this is the case you may be eligible to deal with this matter through them, depending on the regulation of the business at the time you take out the policy.

[sleeplessella]

Re: Bank error in my favour ... perhaps

Firstly thanks for the replies - to answer in order:

Celestine, I had looked at an archive site before but could not pull up the info, this time success! Whilst I dont have a copy of the actual policy, I now know that it was supposed to pay out for sickness, for injury and the loan paid off after a death.

Cheers.
-------

LeClerc,
The partnership was dissolved a dissolution agreement was drawn up. I dealt with everything else but left the sorting of the bank/loan to the partner. I already did a SAR - thats how I found things didn't tally. I'm waiting for the next letter to see what they say but I am a little concerned that somewhere down the line they will simply say that its too late to claim. This issue has been going on for quite some time and to add insult to injury, the bank has set a DCA onto me.

----
Dizzy thanks.

I hadn't heard of the FSCS I will check this out.

[di30]

Re: Bank error in my favour ... perhaps

Firstly thanks for the replies - to answer in order:

Celestine, I had looked at an archive site before but could not pull up the info, this time success! Whilst I dont have a copy of the actual policy, I now know that it was supposed to pay out for sickness, for injury and the loan paid off after a death.

Cheers.
-------

LeClerc,
The partnership was dissolved a dissolution agreement was drawn up. I dealt with everything else but left the sorting of the bank/loan to the partner. I already did a SAR - thats how I found things didn't tally. I'm waiting for the next letter to see what they say but I am a little concerned that somewhere down the line they will simply say that its too late to claim. This issue has been going on for quite some time and to add insult to injury, the bank has set a DCA onto me.

----
Dizzy thanks.

I hadn't heard of the FSCS I will check this out.

Hi

Details of the FSCS here.

http://www.fscs.org.uk/

[sleeplessella]

Re: Bank error in my favour ... perhaps

Hi Dizzy,

Finally got around to checking out the FSCS web site. The business name is not in the database but this could be a really useful site for some people so thanks for posting.

[di30]

Re: Bank error in my favour ... perhaps

Hi Dizzy,

Finally got around to checking out the FSCS web site. The business name is not in the database but this could be a really useful site for some people so thanks for posting.

Hi

If its not shown in the database, then still contact them, one of mine I made a reclaim from was not actually listed as such, only when they were declared in default.
Definately rule this out with the FSCS first by speaking to them direct.

[sleeplessella]

Re: Bank error in my favour ... perhaps

Just need to clarify one or two things.

1. When a loan has insurance payable on death and the insuree dies but no party other than than bank is aware of this loan's existence does anyone know if the bank should have invoked this claim when they were notified of the death?

2. If I were offered a financial settlement, am I correct in thinking that any offer relating to business insurance is an offer to the business and not an individual?

3. I retired from the business years ago, the business closed in debt; if I were to accept a settlement, could I be opening a can of worms, perhaps making myself liable for the outstanding debts.

I know its a big ask, but I hope that someone will be able to advise?

[leclerc]

Re: Bank error in my favour ... perhaps

Just need to clarify one or two things.

1. When a loan has insurance payable on death and the insuree dies but no party other than than bank is aware of this loan's existence does anyone know if the bank should have invoked this claim when they were notified of the death?
The bank should and would have looked at this point when the death of the person was made known, ie a death certificate/phone call. Please be aware though that if other parties are on the loan this does not necessarily mean that the loan is paid off as a result of one party passing away.
2. If I were offered a financial settlement, am I correct in thinking that any offer relating to business insurance is an offer to the business and not an individual?
That would be my understanding but if an offer has been made by a party then ask that party the question directly and any implication this has to the aforementioned loan.
3. I retired from the business years ago, the business closed in debt; if I were to accept a settlement, could I be opening a can of worms, perhaps making myself liable for the outstanding debts.
If the settlement was for the business and further funds from that business becomes available then it might be opening that can of worms.
I know its a big ask, but I hope that someone will be able to advise?

See above but I hope you get more advice apart from mine on questions 2 and 3.