HELP! Reclaiming PPI on a defaulted debt...?

[stressball]

hi...


I have a debt, originally with Egg, that I stopped paying nearly 5 years ago. I am in Scotland, so it hasn't quite reached the statute barred timescale yet, but probably 5-6 months away.


This debt was to combine 2 Egg cards into a single loan, and I was, quite categorically, told that I had to take the PPI in order to qualify. I was, and still am self employed, and so the PPI was most definitely mis-sold.


But here's my problem... I stopped paying the loan after 2-3 years, as I suffered catastrophic losses due to a dodgy business partner. And i was fed up with the greed from the banks and card companies. The loan was officially defaulted, and they tried a few DCA to recover it, but I ignored all correspondence - essentially not acknowledging the debt, and hoping for statute barred status.


The loan has since been sold on, and Egg no longer exist. I received a letter from Canada Square, who were the people who, apparently, managed the PPI for Egg, stating that I was identified as someone who was, potentially, mis-sold PPI. I was DELIBERATELY mis-sold PPI, as the policy does not cover me as a self employed person...


So, here's the question... I know that there's now been a PPI deadline declared (am I correct there? Can someone clarify?) So I want to claim this NOW - BUT... how does this stand with the outstanding debt? Surely, in claiming the PPI on the debt, it's as good as acknowledging the debt? Or will this me a safe bet, as I am dealing with Canada Square and not the original lender (who do not exist any more anyway)...? Would Canada Square have any reason to get in touch with the current DCA who owns the debt??


Help all you financial Eggheads! (no pun intended) Can you all pitch in your 2 pennies worth please...?

[Kati]

Re: HELP! Reclaiming PPI on a defaulted debt...?

A deadline for reclaiming PPI is certainly being considered - http://www.legalbeagles.info/forums/...r-%96-BBC-News

The financial regulator, the Financial Conduct Authority (FCA) is considering a deadline for claims over mis-sold payment protection insurance (PPI). It anticipates that PPI customers would have at least until 2018 to claim compensation.

so you've got a bit of time at the minute.

I don't, however, have any advice on reclaiming it or whether that would stop the SB clock :sorry:. I'm sure some of our knowledgeable Beagles will be able to advise you tho :nod: xx

[FlamingParrot]

Re: HELP! Reclaiming PPI on a defaulted debt...?

I have a debt, originally with Egg, that I stopped paying nearly 5 years ago. I am in Scotland, so it hasn't quite reached the statute barred timescale yet, but probably 5-6 months away.

This debt was to combine 2 Egg cards into a single loan, and I was, quite categorically, told that I had to take the PPI in order to qualify. I was, and still am self employed, and so the PPI was most definitely mis-sold.

But here's my problem... I stopped paying the loan after 2-3 years, as I suffered catastrophic losses due to a dodgy business partner. And i was fed up with the greed from the banks and card companies. The loan was officially defaulted, and they tried a few DCA to recover it, but I ignored all correspondence - essentially not acknowledging the debt, and hoping for statute barred status.

The loan has since been sold on, and Egg no longer exist. I received a letter from Canada Square, who were the people who, apparently, managed the PPI for Egg, stating that I was identified as someone who was, potentially, mis-sold PPI. I was DELIBERATELY mis-sold PPI, as the policy does not cover me as a self employed person...

Hi
I also have an Egg card which is also about 5 months away from SBd even though I'm in the Sunny South (last paid Jan 2010). :grin: It was sold to Barclays and I also had PPI. I've been hiding out and not heard from anyone in all these years so I'm not attempting to reclaim because I don't want to open a can of worms.

PPI reclaims on defaulted accounts are a bit tricky because sometimes the redress is paid out directly to the debtor as it's the original creditor who mis-sold the PPI not the debt purchaser, however, there can be buyback clauses which can be used to offset the redress from the outstanding balance even if the debt has been sold.

It would be very unfortunate if your redress ended up being set off and you'd managed to restart the clock in the process. Especially when you consider that, unlike down here, in Scotland a SBd debt is extinguished, i.e. it no longer exists, so it could not be bought back or anything offset from something that no longer exists. :thumb:

So, here's the question... I know that there's now been a PPI deadline declared (am I correct there? Can someone clarify?) So I want to claim this NOW - BUT... how does this stand with the outstanding debt?

It says that the FCA anticipates you to have AT LEAST until 2018 to reclaim. If you are just months away from SBd, I'd certainly wait. In fact, I know I certainly WILL wait to start on my rotten Egg. :ranger:

The financial regulator, the Financial Conduct Authority (FCA) is considering a deadline for claims over mis-sold payment protection insurance (PPI). It anticipates that PPI customers would have at least until 2018 to claim compensation. So far more than £20bn has been paid out in compensation for PPI mis-selling to more than 10m consumers.

Surely, in claiming the PPI on the debt, it's as good as acknowledging the debt? Or will this me a safe bet, as I am dealing with Canada Square and not the original lender (who do not exist any more anyway)...? Would Canada Square have any reason to get in touch with the current DCA who owns the debt??

As above, it would depend on the terms of the contract between them.

Help all you financial Eggheads! (no pun intended) Can you all pitch in your 2 pennies worth please...?

I'm happy for you to call me an Egghead, since I'm also a fellow owner of one of them bad Eggs... :lol: :lol: :lol:

[Debt Camel]

Re: HELP! Reclaiming PPI on a defaulted debt...?

I agree with Flaming Parrot. I would let sleeping creditors lie undisturbed until at least 6 months after the date at which you think it is statute barred. Then claim.

[stressball]

Re: HELP! Reclaiming PPI on a defaulted debt...?

Cheers FP! - I'm certain the statute barred period has passed, but won't hurt to wait until the New Year, I guess, as long as there's still time to claim. I think my last acknowledgement of the debt, or any communication, would be June/July 2015 - but to wait a wee bit longer wouldn't hurt now, would it!

[stevemLS]

Re: HELP! Reclaiming PPI on a defaulted debt...?

In OP you said you thought it was still inside the relevant period, now you are certain it has passed - have you found something else out?

[FlamingParrot]

Re: HELP! Reclaiming PPI on a defaulted debt...?

Cheers FP! - I'm certain the statute barred period has passed, but won't hurt to wait until the New Year, I guess, as long as there's still time to claim. I think my last acknowledgement of the debt, or any communication, would be June/July 2015

You mean 2010...

- but to wait a wee bit longer wouldn't hurt now, would it!

No, it wouldn't, especially in view of the fact that the FCA states that claimants will have until at least 2018... :thumb: