Tesco Loans PPI puzzle

[tandlehill]

I am currently pondering whther to submit a claim for mis sold PPI to Tesco for a number of loans

I have held with them over about 10 years or so.

 

The PPI was always included in the loan (front loaded),

I was never advised of alternative products,

never aksed if I had adequate cover in place already

and also advised that it would make the success of my application more likely should I opt to take thier PPI.

 

A number of loans were rolled over & I need to do some calculations about the exact amounts (probably after sending SAR),

however things got a little complicated last year.

 

I had two loans (Loan 1 & Loan 2) running at the time (bear with me here as I may start to ramble a llittle!),

we were struggling financially (although not enough to claim through the PPI even if we had wanted to)

& I had asked Tesco for help by reducing payments (Loan 1).

 

Tesco refused & we fell behind on Loan 1.

 

Tesco then issued a defualt notice for both Loan 1& Loan2, quickly followed by issuing of court papers.

 

Now I intended to fight all of the way, tooth & nail as one of their "customer service agents"

had told me that they automatically place ALL accounts into default as soon as just one of them is in default??

(Go figure!)

 

As the papers flew through the mail system I received a statement from one of their "representatives"

which clearly stated that their automatic system was "foolproof" & " didn't make mistakes",

 

however further in the statement he admitted that a default notice HAD been issued by mistake

& that as a result of this admission they would be discontinuing that part of their claim against me (Loan 2) but pursuing Loan 1.

 

I managed to borrow the money from my in laws & paid off Loan 1,

 

my understanding was that Tesco had rendered Loan 2 unenforceable due to unlawful recission by way of admitting

they issued a default notice on an account which was not in default.

 

However, after around 6 months I received a statement from Tesco out of the blue which showed the balance of Loan 2

PLUS all of the legal costs from the court action relating to Loan1,

this now amounting to something like 14k!!

 

My questions are:

 

1. Should I be worried about this paperwork they have now started to send through

(I have never acknowledged any of it but i wonder if they are trying to get it to the point when they can argue

that they did issue a default notice which was in full compliance before pursuing me for it)?

 

2. If I do submit a claim will Tesco try to pursue me for this Loan 2?

Or if they do offer redress can they try to offset it against the amount they claim is owed on Loan 2?

 

3. Am I opening a really messy can of worms??

 

As a footnote once all of the amounts have been claculated & had interest included the amount could be fairly substantial...

..but it is money that they are not entitled to keep or use surely??

 

Any thoughts or advice greatly received.

[tandlehill]

Bump??

[dx100uk]

court costs

 

so you DID goto court?

 

when

if that was more than 6yrs ago then its statute barred anyhow.

 

so SAR time then?

 

hope you can get everything!!

 

dx

[ims21]

Hi

 

I wouldn't like to comment on the unlawful rescission part but it certainly seems that you have been treated unfairly by the bank I would say. They appear to have lumped the legal fees etc onto loan 2 and will be charging interest at the rate of loan 2 on them.

 

Was the interest rate for loan 1 less than loan 2?

 

Is interest actually being charged on these legal fees?

 

Is loan 2 either in arrears or terminated?

 

As far as setting off is concerned, they can only set off against notified arrears on an account so if loan 2 is not in arrears then no set off can be made regarding that loan. I would suggest that they can set off for the legal fees relevant to loan 1 though.

 

It might be an idea to go through and calculate what the PPI redress would be so that you can see how it compares against the indebtedness to the bank.

 

Have a read of no.1 in my signature which will help you with the maths. There are also spreadsheets at the end which will help you further.

 

If/when you get stuck, shout here.

[tandlehill]

Some changes on this recently;

 

Tesco made a payment on the account which showed on the "sporadic" statements they continue to send through amounting to just over £6k

(which probably would reflect the legal costs they originally added to the loan, and which I feel was totally illegal).

 

Therefore the loan account is now somewhere near where it was at the date they issued their defective default notice.

 

I have decided to bite the bullet & go after them for the mis-selling of the PPI which was rolled over into a number of other consecutive loans,

 

the gamble being that the redress will outweigh any monies they try to take to off set the outstanding loan amount.

 

Of course if they do attempt to of set I will fight them all the way.

 

Will keep posting here to update.

[t18con]

have you SARed them yet? that should be your first priority.

[dx100uk]

you REALLY need to sar Tesco's as advised long ago in april.

 

and what are these legal fees you keep going on about?

 

if Tesco's did not file a claim, they CANNOT charge them.

 

dx

[tandlehill]

Hi dx100uk;

 

The legal fees just appeared out of the ether after we had settled the loan, they were related to the solicitors they employed & nothing to do with any court proceedings (we didn't go to court as it was paid before any cut off date). I was going to argue with this but as they had added it to the account I think they unlawfully rescinded (by virtue of placing it in default when it was up to date) I didn't want to rock the boat.

 

As a background at the same time as this action I was fighting Lloyds over a credit card for O/H along with a couple of others & to be honest was knackered after burning lots of midnight oil (quite alot of it on here researching).

 

Now, in of terms of SAR I have tracked the accounts I had with them & have the original documentation from them, so will be using the excel template to calculate the rollover amounts; my main concern was whether or not Tesco could begin proceedings against me again in terms of the account that they discontinued proceedings on?

 

Next step is to do the maths anyway. Apologies if the thread was a little frustrating!

[dx100uk]

well as long as you have all the statements you have all the info.

 

so a court case was scheduled, and you settled beforehand.

 

in otherwords you got the n1?

 

dx

[tandlehill]

Yes got an N1; I was originally going to enter into a Tomlin but thankfully was able to borrow the money from my in laws to pay it off.

 

This link should give you some idea of what I am waffling on about.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?254956-Me-v-Tesco-Triton-Incasso

 

They have never really done anything with the account related to the claim they discontinued, other than the sporadic statements & the adjusting of legal fees (which interestingly were not being pursued on the Tomlin), I just want to be sure that if they play funny & I fight them I have a clear understanding of why I am fighting them!!

 

As it stands there are at least 4 loans which roll over into one another so the money could be substantial (but slightly less if they attempt to offset it!)

[dx100uk]

okso the legal fees are legit.

 

follow link 1 below to do the PPI & the rollover.

 

post it up when done

 

dx

[tandlehill]

Actually, having had time to reflect on things I think I will SAR them anyway, better to be safe than sorry & may be an interesting exercise to see what they actually have.

 

Will post up when I receive something from them.

[tandlehill]

Ok so after allowing Tesco a VERY generous amount of time to respond to my SAR I have today sent off my LBA.Clock is now ticking.

[tandlehill]

Received a bundle from Tesco recently & having calculated the total amounts (including the roll over PPI - thanks for the brilliant guide dx100uk) sent off my claim.Got a letter back telling me they will gather all information from their end then investigate & write back with decision, waiting to see which game we will be playing!

[dx100uk]

hey great news

 

dx

[tandlehill]

finally received a response from Tesco today with an offer of redress,

nowhere near the actual amount calculated & provided to them (around 50% less!);

 

they do say that they will refund all of the premiums

but their figures don't tally with the information they sent me from the SAR.

 

I think they are trying to muddy the waters because some of the amounts are due to the "rollover" effect,

but this does not explain how they arrive at a totally different calculation to the information they sent me?

 

They also want to offset against the alleged arrears on the outstanding loan account,

which I still feel they unlawfully rescinded by issuing a defective default notice

on an account that clearly wasn't in default at the time of issue.

 

I still have their expert witness testimony stating categorically that it was issued by mistake

& the account wasn't in default or arrears.

 

They also only offer to offset against this loan but don't actually state what the alleged arrears are,

just that they will offset the refund against this.

 

I am thinking of writing back to them to give them 14 days to reconsider their offer

before issuing court proceedings to recover it all as I think they have calculated incorrectly

or supplied me with false & inaccurate data for the SAR.

 

Opinions welcome!!

[dx100uk]

you need to ask them for a complete breakdown

inc the printout of the spreadsheet used showing every figure.

 

you obv to need to put them correct about the off set too.

 

dx

[tandlehill]

Thanks dx100uk

 

Will prepare my letter later this evening;

 

you mention putting them correct regarding the offset too,

 

do you mean pointing out that they unlawfully rescinded?? (hope that isn't a dumb question!!),

 

I know there are some who aren't 100% sure on this but my thinking is if they didn't think they had dropped a booboo

they would have pursued me for the alleged debt straight away.

 

They haven't,

 

they just send infrequent statements about it;

they discontinued that part of their claim when I settled the others

 

(I am assuming on the back of my contesting it on the basis of the defective default notice).

[dx100uk]

I think in hindsight having re read the thread

 

you need to question 'what arrears' they are referring to concerning the offset.

 

the issue of a defective default notice, can sadly be rectified by them sending a another one

 

you indicate you have been getting 'paperwork' on this loan

 

I assume these letters are 'NOSIN' letters [notice of sums in arrears]?'

 

dx

[tandlehill]

Thanks dx100uk

 

The paperwork has consisted of a letter detailing that the personal loan account is in arrears, that they are obliged to send it under the CCA & will send further letters every 6 months. It isn't a default notice (at least I don't think it is as I don't think it fits in with the prescribed terms), on the second sheet it just gives a break down of the arrears (which is now the full amount of around £8.8k).

 

They have never pursued me for this or done anything else with it since they discontinued their claim for the loan (this after they admitted they issued a defective default notice). I have never paid a penny towards this account following that admission, whether foolhardy or not I had had just about enough of them at the time & had already agreed to clear the other account completely by borrowing from my OH parents.

 

I probably wouldn't be too fussed if they did offset to be honest (despite the principle that they made the mistake not I) but the fact that they have somehow arrived at a different calculation to the figures they sent me as a result of my SAR just hacks me off royally.

 

I have simply calculated what part of the monthly payment was used to finance the PPI & then entered this into the spreadsheet which calculated all of the amounts including 8% interest. In any case the interest continues to accrue & as of yesterday the amount they need to return to me is in excess of £12k, maybe that's why they are playing hardball?

 

Will work on my letter today in any event & get it sent off, doesn't help being signed off with work related stress & trying to fight all corners.......but I won't lie down & take it from these ******s.

[tandlehill]

By the way they only offered £5k.

[dx100uk]

so confirmed they are sending what I though nosin letters.

 

that's all they could offset then.

 

lets see what the breakdown brings.