Credit agreements void if credit amount includes PPI premiums

[noomill060]

On the Radio 4 programme, You and Yours, about a month ago, concerning the unenforceabillity of of the vast proportion of credit agreements due to not being properly set out, a solicitor specialising in PPI reclaims was interviewed and said, virtually in passing, that if PPI was included in the credit amount , the entire contract was void and unenforceable.

 

I have a recording of this interview. If anyone wants it, send me a PM with your email address.

[noomill060]

By credit amount, I mean if the premiums were debited to the amount borrowed.

[noomill060]

Hang on, I'll listen to it again to make sure Im getting it right.

[noomill060]

To paraprase what the solicitor (Mr Keith Turner from Turner,Coulson Solicitors) is saying, the premiums are often added to the amount borrowed and interest then charged on them.

 

In many cases, he says:

 

"this will make the agreement unenforceable because the information will be in the wrong column, interest is added to the premium, which is ILLEGAL" (His choice of word) and in many cases, makes the agreement itself UNENFORCEABLE as well as making it possible to get back the PPI premium as well as all interest charged on it"

[gemspan]

That's my thinking exactly. What I am concerned about though is if you have already claimed on the PPI you are not entitled to claim on it. However, it has still been mis-sold and you have still paid a hugely inflated price for it; you are still told that your interest rate will be lower if you take the PPI etc., etc.,

 

I had PPI and had to claim on it for an unfortunate illness. It took them 3 months to pay out and in that time the finance company registered 3 late payment markers against my name. Now, my argument was that I had taken the insurance out to prevent that. I then found out afterwards that this prevented me from claiming the interest etc., I paid. The loan was settled early.

 

Gemspan

[mnrbig]

I think there was a court case that ruled something similiar. I just cannot remember the details.

 

I however could be wrong.