PPI, Credit rating and trust deed.

[Sonsub]

Hi,

I have been reading the forum with interest and thanks to all those who input.

I had to enter a trust deed (IVA) 4 years ago which has been settled. Around four years ago I had a breakdown with divorce, fighting for access for my kids and a large amount of credit card debt...a large chunk I did not know about. Divorced now so water under the bridge.

I had income and mortgage protection policies wich covered the basics and they were really good ...paid out no problem...phew!!
BUT After paying PPI for years on the credit cards I was shocked even more to find out that if I claimed on them it would reduce my income and mortgage monthly allowances from the independant policies I had
. Basically it was income and mortgage paid or Credit card balance reduced only...one or the other. It was a no Brainer and I entered a trust deed to cover the debts on credit cards.

Only this week I have started chasing for the PPI refund...so thats 'fine' ongoing MBNA,EGG,MINT,

What does 'bother' me is that my credit rating was smashed to bits and was 'forced' into the Trust deed by the PPI being null and void....although I had paid literally thousands over a 12 year period.

Bit angry now however my question is...... would there be any way of having my credit score improved by pursing the card companies that had my credit report tarnished i.e. from the non payment of the PPI that wasnt valid / any use when I needed it the most?? Is it possible to have them remove the black mark against me before the 6 years on credit file has run its course??

Bit long winded but seems a good place to start...Thanks for any pointers.

[Bill-K]

Re: PPI, Credit rating and trust deed.

Hi and welcome to you, Sonsub. You've had a tough time, and it's good to see you getting back on your feet. Getting credit records repaired can be a tough job, and that area is not my 'forté,' I'm afraid. Like yourself, I have a discharged Trust Deed "the noo" - but I managed to avoid divorce and nervous breakdown - albeit narrowly !!! We all have a T-shirt to wear here, I guess - but I count my blessings when I see others who have suffered more than myself.

I've been helping with PPI reclaims, and I'm glad to see that you appear to have that aspect in hand. This may be of use to you in your quest. Last year, the FSA published a Policy Statement designated as PS 10/12. Within this document was the 'PPI Redress Handbook,' which contained the guidelines for PPI redress claims - to be used by the FOS. A particular paragraph in this document encapsulates the FOS stance on PPI, and I think it is a central element. I'm always quoting it:

DISP APP 3.7.2 Where the firm concludes that the complainant would not have bought the payment protection contract he bought, and the firm is not using the alternative approach to redress (set out in DISP App 3.7.7 E to 3.7.15 E) or other appropriate redress (see DISP App 3.8), the firm should, as far as practicable, put the complainant in the position he would have been if he had not bought any payment protection contract.

In the FOS's own words: "In the majority of cases, we are likely to tell the financial business to put the consumer in the position he or she would have been in if they had taken out all of the loans without any mis-sold PPI - and to compensate them if they have been out-of-pocket in the meantime."

If you would not have had this adverse credit rating, had you NOT taken out the PPI, then the FSA guideline suggests that this should be amended.

But this is an ongoing battle - which also covers other aspects of 'consequential loss.' The principle seems to have been enshrined in PS 10/12's DISP APP 3 - but the acceptance of that principle seems to be a problem.

I don't know if I've helped - but you're welcome to my efforts.