Yorkshire Bank - PPI on Loan

[davestillravin]

Hi there,

Wonder if anyone can advise me on this. I defaulted on my Yorkshire Bank loan some time ago but made arrangements with them to pay off the debt at a lower amount each month, stopping all interest, charges etc.

Quite out of the blue I received a letter from Apex Credit Management Ltd advising me that they had been assigned all rights to this debt etc, etc. I have taken advice from you website and am following up with Apex. However Yorkshire Bank advised me that they were cancelling my Payment Protection Insurance with effect from 1 April 2009 (please bear in mind their letter advising me that they were "assigning my debt" to Apex arrived after Apex wrote to me and after I in turn wrote to Yorkshire Bank). I questioned their right to do this and also the paltry £287.68 refund for PPI when I had been charged over £4000 at the begining of the loan term.

Their response was as follow "

-“The proportion of the debt is repaid with a higher percentage of your insurance being repaid from the insurance being repaid from the instalments at the beginning of the loan. This percentage decreases throughout the term of your loan therefore you pay a higher percentage when the loan was first taken out and a lesser amount towards the end of your loan”


My loan agreement quite clearly states that it is a "Fixed-sum Loan Agreement" and shows that the loan and the PPI would be repaid in equal sums across the full term of the loan. So their statement above is patently untrue? What should I do now? Yorkshire Bank have not responded since 11 June, and that a generic letter apologising for the delay and promising to respond within 4 weeks.



After a long silence Apex have just written to me enclosing a copy of my Loan Agreement, which seems correct. Having checked you website for advice I am responding to them to advise that as the debt is in dispute with Yorkshire Bank they should not be persuing me. I have not spoken to them on the phone and have never acknowledged owing them money but have always told Yorkshire Bank that I intend to repay the debt, which I do and I think is right.


Thanks for great advice so far don't know what I would do without it.

[Amethyst]

Re: Yorkshire Bank - PPI on Loan

Are you going to reclaim the entire amount of PPI paid as missold ?

What they have said to you is often the case with PPI, however if the agreement shows that basically it was two loans being paid off together with the seperate calculations shown that argument does fall down rather.

I think I would carry on disputing Apex's right to claim on the debt as the amounts in dispute with Yorkshire, keep paying your reduced monthly payments to Yorkshire to cover your back on the loan portion owed, and reclaim the entire PPI amount as missold (obviously it wasnt explained to you that it would be top loaded - also it hasnt helped you at all now you are in a position you cant afford to pay the loan and the full agreed rate) - what was their reason for cancelling it and what arguments against cancelling it did you give at that time ?

[davestillravin]

Re: Yorkshire Bank - PPI on Loan

Hi, thanks for the information and advice. The loan is shown as two loans being paid off simultaneously - the main loan and then a loan for the PPI. The PPI being as equal monthly payments. I do intend to ask for a full refund on the PPI to see where this takes me and of course I am disputing their right to transfer the loan to Apex (who incidentally cannot make their mind up how much I "owe" them, each of the 3 letters they have sent states a different amount).

Yorkshire Bank's reason for cancellling they say is because the "account" (debt) has been sold to a third party. They also say that they are not legally obliged to advise me of this beforehand, only after the sale is complete. Is there no protection for consumers as to who they owe money to? Are they allowed to sell the debt to anyone or just to those with a credit licence?