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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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I've claimed back PPI from a bank loan, the bank put a default on my account in 2008

Customer Question

I've claimed back PPI from a bank loan, the bank put a default on my account in 2008 the default I was told by experian was dropping off my credit file in Dec 2014, by claiming PPI back am I acknowledging a debt that is still outstanding? Even though now it's statue barred?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

I assume you did default on the loan?

Alex Watts :

Is the PPI less or more than the outstanding amount of the loan please?

JACUSTOMER-y8kzwyjf- :

Yes I did default on the loan.

JACUSTOMER-y8kzwyjf- :

The PPI is less than the loan outstanding

Alex Watts :

ok

Alex Watts :

Well the problem you have is this.

Alex Watts :

Just because it is statue barred does not mean they can not ask for it

Alex Watts :

Therefore if you put in a claim for PPI then they can apply it against the arrears.

Alex Watts :

But the real risk is by asking for PPI do you acknowledge the debt.

Alex Watts :

That is a real possibility and the Court may see you are being cheeky by trying to claim PPI and get out of the loan.

JACUSTOMER-y8kzwyjf- :

The loan is now statue barred, it's more than 6 years since the bank put a default on my credit file

Alex Watts :

Therefore if it was me, I would not try my luck because of that reason

Alex Watts :

However even if you did claim PPI the bank could just apply it to the arrears and there is nothing you can do about that.

Alex Watts :

I am sorry if this is not the answer you want and not necessarily the one I want to give you, but I have a duty to be honest

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-y8kzwyjf- :

The FOS told me because the bank sold the debt they cannot apply the PPI onto the outstanding loan

JACUSTOMER-y8kzwyjf- :

But the PPI I've claimed back is for the payments I had made on the loan, what's cheeky about that?

Alex Watts :

Because you run the risk of a Judge saying well you want PPI back but you wont pay the loan back

Alex Watts :

The Judge may well be infer that applying for PPI you accept there was a loan and therefore a debt.

Alex Watts :

But in any event the lender can just apply the PPI back to the defaulted loan amount and you are no better off

Alex Watts :

You can't make them pay you the PPI directly.

Alex Watts :

They can just apply it to the amount owing.

Alex Watts :

Even though that amount can't be enforced through the Court.

Alex Watts :

I would let sleeping dogs lie

Alex Watts :

I am sorry if its not the answer you want.

Alex Watts :

But I need to be truthful

Alex Watts :

Can I clarify anything else for you?

Alex Watts :

I need to drop offline for about 10 mins - but I will respond when I catch my next train

JACUSTOMER-y8kzwyjf- :

What you are saying is not the law! I have said the FOS have said, if the bank has sold the debt they cannot use the PPI against the debt, because the bank no longer has the debt. I'm not sure you know what your talking about.please answer the question, what is the law, can claiming the PPI acknowledge the debt and start the 6 year period again for the debt to be collected?

Alex Watts : Forgive me, when earlier did you say it had been assigned?
Alex Watts : i must have missed where you said that
Alex Watts : Shall we continue on the basis it has been assigned and I can give you the legal answer from that?
Alex Watts : If I missed it in your question I apologise
JACUSTOMER-y8kzwyjf- :

Yes, ive received the PPI from the payments I have made on the loan, by asking for the PPI to be refunded have I acknowledged the debt and started 6 year period again for the debt to be collected?

Alex Watts :

As long as you claimed the PPI back and never said that you acknowledged the debt you will be ok.

Alex Watts :

By asking for PPI you are not saying you are liable the debt.

Alex Watts :

You are simply saying and ONLY saying: You charged me PPI when you should not have, I want it back

Alex Watts :

If the loan was with the bank it wouldn't make any difference for the reasons above, they would just offset it

Alex Watts :

But as it has been assigned then you are o

Alex Watts :

ok

Alex Watts :

Sorry for the misunderstanding

Alex Watts :

Can I clarify anything for you about this today please?

Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.


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