What will happen to me - will I end up in jail?

gordongekko said:

A quick question are they still charging you for the payment protection?

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I don't know. My branch manager said that I was entitled to a refund and that 'they' would contact me but 'they' never did.

That in itself is grounds for a complaint to the [broken link removed]and the [broken link removed]. I suggest you put it all in writing to BoI* first, explain that you want a written response pdq from their internal complaints division, and indicate that you will then be referring it to the above offices...

I had a small problem with BoI a few years ago and that's how I got satisfaction, anyway!

*Customer Care Unit
Bank of Ireland
Head Office
Lower Baggot Street
Dublin 2

you should also find out how much you have paid todate in payment protection- get it back and knock it off the loan. Also point out to the bank that you took their advice on payment protection, while obviously the bank employee who advised you off this was ignorant of the full conditions. That should give you some leverage.

wexford said:

you should also find out how much you have paid todate in payment protection- get it back and knock it off the loan.

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You should also make sure they refund interest on the payment protection payments.

Great respect and all that for MABS. As soon as a Bank hears MABS are involved ..you are regarded as bad news, and you are probably downgraded in their credit systems to a notch above write off.
1. Were you on contract when you took out payment protection?
2. If they knew immediately look for a mis-selling settlement;
3. Go immediately to the branch that you dealt and put your case showing them what progress you made.
4. Threats with solicitors letter is only to get honest folk like you to pay ('decent honest but squeezed'); There is no doubt in my mind that you will pay so..
stand 7 foot tall and sort it.

WizardDr said:

Great respect and all that for MABS. As soon as a Bank hears MABS are involved ..you are regarded as bad news, and you are probably downgraded in their credit systems to a notch above write off.

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What's to stop somebody going to MABS, getting advice and then pursuing the matter themselves without having MABS act as an intermediary thus not divulging to the financial institution that this contact was made? Also - surely while the MABS contact may be noted for credit purposes by the financial institution(s) involved this information is not recorded in one's ICB credit records so other financial institutions with whom one has not yet transacted business will never know? Personally I would be more inclined to recommend that somebody deal with MABS one way or another than to prevaricate further for fear that this will have some knock on effect on one's credit rating with the situation presumably getting worse all the while...

I think IFSRA might have some interest in the contents of your latest post.

My my personal experiences the banks can be dissmissive of the approaches of MABS. I also found that MABs were not acting in my best interests at all times. They wanted other ppl in my house to help pay my debts, something they are not legally obliged to do. In some ways there are acting as frontmen for the banks.

bond-007 said:

My my personal experiences the banks can be dissmissive of the approaches of MABS.

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Interesting - I have no direct personal experience with them and always assumed that they would be the first and maybe best port of call for people experiencing debt problems.

I also found that MABs were not acting in my best interests at all times. They wanted other ppl in my house to help pay my debts, something they are not legally obliged to do. In some ways there are acting as frontmen for the banks.

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Can you expand on this at all? Why did you think that they were not acting in your best interests? What was your domestic situation and who were they asking to help defray your debts? And how do you consider that they were acting as frontmen for the banks? Did you voice your concerns and challenge any allegedly inappropriate behaviour or advice on their part?

I was in a bit of bother a while back with a few grand owing to a bank. I said that I could offer x to them ,but mabs said they won't accept that and asked if my parents could help pay. It was my debt and my parents didn't incur it. Why should they pay?

as for my frontmen comments, they didn't explain all my legal options availble to me such as letting the bank get an installment order where I could demonstrate my inabilty to pay etc. They just kept saying get the money from other ppl.

Thanks for the feedback. Can you say when this was? Maybe they were less funded/resourced and therefore more constrained in terms of the quality of the advice that they were able to give to people at the time? In relation to asking your parents to contribute is there any possibility that this was simply one potential strategy that they advised/investigated? I'm not familiar with "installment orders". Can you explain or link to info about them?

When a person owes money to a bank or other creditor they can go to court and get a judgemnt against you for the money you owe.

If this is still not paid they can ask the court for an installment order. The debtor can then tell the court their circumstances and the court will then decide how much you can afford to pay if any.

Thanks for that explanation.

What will happen to me - will I end up in jail? Part 2

Many thanks to all who offered advice. I am looking for more advice as a result of the latest development.
First of all let me recap....

I got a loan years ago. On three occasions over the years I got a top up on the loan. I had payment protection from the beginning. When I applied for a top up on the existing loan, what happened is the old a/c was closed and a new one opened. On the last 2 occasions that I applied for a top up I was asked if I wanted payment protection. Of course I said yes, thinking it would be of some benefit. I supplied letters from my employer stating how much I was earning and the letter clearly stated that I was on a contract. Do I have a case for recouping payment protection on that basis?

My contract came to an end in March 2003. I was working in Dublin. I was pregnant. My partner was in Galway. I moved to be with him. I couldn't get work due to being pregnant. I became a stay at home mum. I am mother to a 2 year old. I was claiming U/B. My payment protection was worth nothing as anyone on contract is not entitled to have their loan paid for them.

I was out of work for over a year and a half. I now work part time but my wages are low and certainly not a patch on what I got in Dublin. All the while I stayed in contact with my bank and did my best to pay back what I could.

My loan had grown to 10K. This year I managed to pay a lump sum of 5K.
My local branch manager said he would ask head office to restructure the loan. This was refused. They stated that they wanted to receive original payment installments of over €232 pm. This is impossible for me.

For over two and a half years I have received constant phone calls and letters from Bank of Ireland staff demanding increased payments despite me paying a regular sum every month. All my payments have been constantly cancelled out due to interest being added. It's like I've paid nothing and I never will be able to pay it off if they keep adding interest.

Today I met the branch manager (I didn't get the loan from him) and he said that his hands were tied and he was as frustrated as I was. He said that there was nothing he could do for me and that I should contact a solicitor at this stage. Is this correct? I don't know who I should contact in the bank if I do go to a solicitor.

Is this the usual route? I would welcome any advice. I am really gutted and feel that all my efforts have meant nothing.

Clare

Re: What will happen to me - will I end up in jail? Part 2

Fist of all prepare a budget for yourself and then WRITE to the bank, no good call or phoning it must be in writing and record it is possible as they will probably say that they never received it from you, after you have done a budget taking everything into ie rent payments and child care with everything else including birthday presents do not leave yourself short, tell the bank that you can pay them half of what you are able to as they will always want more. If they refuse to accept then you can up it a bit more and if they refuse that then tell you cannot pay and they cannot get blood from a stone but they will try. It would seem best for you for to let the bank take you to court and they will decide what you can affort to pay. Remember the court will be on your side as you have made every attempt to pay but the bank was been very unreasonable. The court will maybe decide that you can only pay lets 5 euro per month for the rest of your life. You must put everything in writing to the bank as it is proof of how you have been trying to resolve your debt with the bank to no avail. Best of luck - Do not worry about it as the bank are not going to easy but they are machines and do not take it personnally as they treat all debtors in the same way.

Re: What will happen to me - will I end up in jail? Part 2

As, royrogers just said, let them make the next move. You have done all you can, let a court decide that you can pay and if it's only €5 a month the bank will look stupid and they will not get their costs.

Don't let them frighten you. Hold your ground and you will be fine.

Re: What will happen to me - will I end up in jail? Part 2

I think you have good grounds for a refund of all the payment protection premiums, plus interest (at the loan rate). The product was not suitable for you - misselling. You declared that you were on contract before accepting the insurance proposal, so the whole insurance contract should be null and void.

Moreover, some banks (used to?) calculate payment protection as a lump sum. They pay this to their insurance subsidiary at the start of the loan. They then add this lump sum to the loan amount and lend it to you. This way you pay interest on the cost of the payment protection! Worse, even if you repay the loan early, you end up paying what payment protection would have cost for the whole term.

Each time you topped-up the loan, the bank chose to cancel the original loan and start again. You took out payment protection three times. It's possible you have actually paid full-term payment protection for the original loan amount three times! If this is what happened, a refund of all payment protection premiums (plus interest!) could be very significant in the context of the remaining principle.

Unfortunately, I am not financially or legally qualified. I'm not sure who you should complain to. I expect a solicitor could be costly. I would write a letter asking for the total cost of all payment protection premiums (plus interest) to be refunded, on the grounds I have outlined above. You need to address this to the insurance company, not the bank. The insurance company is probably a subsidiary of the bank. If they have a customer complaints procedure, you need to exhaust it, in writing. At that point you should be able to bring a complaint to the Insurance Ombudsman ([broken link removed]).


As Roy Rogers has said, you also need to write to the bank setting out your financial situation and once more repeating your offer to pay what you are already paying as a restructuring of the loan. I think this needs to be separate from any payment protection complaint, to avoid the complaint as a whole not coming under anyone's jurisdiction.

Good luck!

Re: What will happen to me - will I end up in jail? Part 2

No you won't go to jail.
But as long as this is hanging over you you're in a sort of Jail.

Contact MABS immediately. If you haven't already.
www.mabs.ie
-Rd

Re: What will happen to me - will I end up in jail? Part 2

Maybe go to your credit union, get a loan from them and clear the bank loan. They are much more understanding about this sort of stuff and although you may not have any savings history with them, they will usuaslly look at every case individually..