Using PPI to offer a lump sum towards the repayment of my debts

Ceciliaid · 9 November 2017 at 11:46AM

Hello all. this is my first post. I need some advice.

I was sold an IVA in August. It was accepted with payments starting at the end of October but I will probably not be able to face the next repayments. The IVA providers are asking me to agree to let a solicitors' firm check whether I am owned PPI. I had much rather claim it myself without intermediary and use that money (if any) to offer a lump sum toward the repayment of my debts. How can I do that? Would I have to get out of the IVA? I do not want to give any creditor money owed to me when I could use it to clear my situation. Thanks.

[Deleted User] · 9 November 2017 at 11:48AM

Any redress will automatically go to the creditor to clear any unpaid debt.

[Deleted User] · 9 November 2017 at 12:25PM

Ceciliaid wrote: »

I had much rather claim it myself without intermediary and use that money (if any) to offer a lump sum toward the repayment of my debts. How can I do that?

You don't have to use a solicitor/ claim firm to complaint about PPI, but any redress you are awarded will simply be offset against the existing debt of that particular lender. So how ever you decide to proceed, you won't be receiving any cash sum to offer to other lenders you owe.

The only advantage to complaining alone (in your case) is that you won't pay the "solicitor" any fees and the whole redress amount will go to your debt.

dunstonh · 9 November 2017 at 1:34PM

The IVA providers are asking me to agree to let a solicitors' firm check whether I am owned PPI.

You are not owed anything. That isnt how it works. If you were missold, you make a complaint stating as much. The firm then decides whether you have a case or not. If you do, they refund it to the IVA. If you dont, they reject it.

If a CMC is used, they get to take a cut off the redress earning them money. It also means it takes longer for you to come out of your IVA as they have taken some of the money.

The IVA providers are asking me to agree to let a solicitors' firm check whether I am owned PPI.

You are not in a position to receive the money or make an offer. The full refund, if the complaint is successful, should go to the IVA. You are free to make the complaints yourself though to avoid the CMC taking a cut.

The IVA providers are asking me to agree to let a solicitors' firm check whether I am owned PPI.

You will not receive the money, even when you are out of the IVA. (caveat being that if the refund was greater than the amount owed, then you could get the excess. Also, these comments apply to England and Wales. The rules are different in Scotland)

Using PPI to offer a lump sum towards the repayment of my debts

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