Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

PPI / defaulted loan / off setting: advice needed

4 replies

Alice2014 · 10/04/2014 09:22

A long story but I'll cut it short - years ago my DH took out loads of loans for things for his mum. On one of these he didn't make payments and about 2 years ago he received a letter saying to that effect because it had defaulted years ago.

This was a Welcome Finance loan that had been sold to another company. I attempted to claim PPI back and asked the third party to give us a copy of the original documentation as my DH can't remember taking out this loan and says he didn't receive warning of a default / debt sold etc.

Neither Welcome Finance nor the new company can find the documentation - they supply documents dated a year earlier with a different reference. I believe that in this case they then can't continue to ask for the money and they should correct my DH's credit record.

The FSCS has investigated the PPI claim and said that my DH is owed 2k in compensation, but this will be off set against the defaulted account. But again because my DH doesn't remember any of this and they can't provide the documentation I think he should be paid what he is entitled to without any off setting.

I'm now stuck as to what I can do / should do. Any advice?

OP posts:
thewizenedone · 10/04/2014 12:59

Not an expert but I would think best case would be to accept the offset and ask for them to amend your dh credit history. Cant see that you could win the argument about writing off the loan as dh cant remember but still claim ppi refund. Also imo claiming the ppi back pretty much acknowledges the loan, although obviously not the specifics. Maybecpush for correction of credit file due to their inability to provide documentary evidence? How did FSCS investigate?

Alice2014 · 10/04/2014 16:01

The PPI refund was for other loans taken out with Welcome that we have the paperwork for and that were paid. I'm highly doubtful that this loan exists, why would he pay all the others religiously but not this one, and why would he have paperwork for all the others but not this one.

Welcome Finance went bust and the FSCS is dealing with older cases as a result.

OP posts:
thewizenedone · 10/04/2014 19:29

Oh I see, is there no payment book or maybe bank statements that might help? I have heard of Welcome I think they used to finance store cards too. In the meantime have you looked at dh credit file and put a notice of correction regsrding this disputed loan? Then maybe argue further with FSCS about ambiguities as you say why pay the others but not this one. Didnt realise PPI was for other loans sorry.

Alice2014 · 10/04/2014 20:05

It's quite ok - I should have pointed that out and thanks for your help. There is no payment info because like I say they can't provide any details of it and we have no info on it either.

I guess I shall just continue to stand my ground and continue to explain this to them. They don't seem to care about the fact they have no details of this account.

OP posts:
New posts on this thread. Refresh page