PPI & DMP Help Needed please....

missangel_2

My debts have been mounting due to various changes in my circumstances and I took the decision this year on the 16th November that my only option was to start a DMP, which I have done with Payplan. I have openend a new bank account and stopped payments to my creditors etc and Payplan are now in the process of contacting each of my them to negotiate a new payment plan which will hopefully, if they agree be in place around December/January. My total debt is in the region of £40,000.00 and £23,000 of this debt is for a loan I took out with Northern Rock back in 2005.

A few months earlier in September though before I even thought of doing a DMP I wrote to Northern Rock saying I thought they had miss sold me their payment protection insurance. They initially sent me the standard letter in October saying we're looking into this. On Monday 23 November I received a letter from Northern Rock offering me a refund of my PPI for the amount of £1360.32 which they will desposit into my account once I have signed a new credit loan agreement which will be without the insurance.

Obviously I feel I am entitled to this refund but surely I can't sign the new loan agreement as Payplan have or will contact Northern Rock about starting a DMP? Can Northern Rock not give me this refund if I don't sign the new loan agreement? Sorry if the answer seems obvious but I really don't know what to do? If anyone can help me I would really appreciate it.

Thanks

I

di3004

missangel wrote: »

My debts have been mounting due to various changes in my circumstances and I took the decision this year on the 16th November that my only option was to start a DMP, which I have done with Payplan. I have openend a new bank account and stopped payments to my creditors etc and Payplan are now in the process of contacting each of my them to negotiate a new payment plan which will hopefully, if they agree be in place around December/January. My total debt is in the region of £40,000.00 and £23,000 of this debt is for a loan I took out with Northern Rock back in 2005.

A few months earlier in September though before I even thought of doing a DMP I wrote to Northern Rock saying I thought they had miss sold me their payment protection insurance. They initially sent me the standard letter in October saying we're looking into this. On Monday 23 November I received a letter from Northern Rock offering me a refund of my PPI for the amount of £1360.32 which they will desposit into my account once I have signed a new credit loan agreement which will be without the insurance.

Obviously I feel I am entitled to this refund but surely I can't sign the new loan agreement as Payplan have or will contact Northern Rock about starting a DMP? Can Northern Rock not give me this refund if I don't sign the new loan agreement? Sorry if the answer seems obvious but I really don't know what to do? If anyone can help me I would really appreciate it.

Thanks

I

Hello and welcome.;)
Good luck with the DMP, I'm sure it will all work out for you in the end.

In regards of the PPI refund, did NR just sent this letter out to you automatically? Or did you write to reclaim?

If you were mis sold the PPI, then your entitled to reclaim on this with the reasons you have, so also check on this link here as well:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

And there is also another thread where many in the same situation as yourself post, called the debtfreewannabe thread which is here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=76
Many in this position have reclaimed on the PPI and have been successful.
However the refund is then normally refunded towards the debt, to bring the owing amount down, if there is anything remaining of the refund, they should refund to you.

I would make sure there is no more owed in what NR have offered as well if you can.

But it makes no difference when on DMP, loads of others have reclaimed.

I would though as well post on the above thread, and check what others have done about this, so this way you will definately know where to go from here.

Good luck and please keep us posted, and ask for help when required.;)

missangel_2

Thank you so much for replying to my post.

I wrote to Northern Rock myself to reclaim before I started my DMP with Payplan. I would obviously prefer to get this refund rather than it be taken off my debt but do you think this is possible? To do this I have to fill out their Acceptance Declaration Form, which has to include my bank details and signature. Once Northern Rock receive this back from me they then send out a new loan agreement which I have to sign and return and then they deposit the money directly into my account.

I guess I'm worried about giving Northern Rock my new account details and whether signing the new loan agreement will affect the negotiations Paylan are currently negotiating.

Any help would be fab....

Thanks

di3004

missangel wrote: »

Thank you so much for replying to my post.

I wrote to Northern Rock myself to reclaim before I started my DMP with Payplan. I would obviously prefer to get this refund rather than it be taken off my debt but do you think this is possible? To do this I have to fill out their Acceptance Declaration Form, which has to include my bank details and signature. Once Northern Rock receive this back from me they then send out a new loan agreement which I have to sign and return and then they deposit the money directly into my account.

I guess I'm worried about giving Northern Rock my new account details and whether signing the new loan agreement will affect the negotiations Paylan are currently negotiating.

Any help would be fab....

Thanks

Hi there and your welcome.;)

I know what you mean here, and because you have been put out of pocket due to being mis sold here, the money is really rightfully yours.

You could write to them and tell them if you were not mis sold the PPI in the first place, then you would not have been in this position now, and the money belongs to you and not for them.
You could try to argue your case here, but normally it is what they do is refund the ppi back on to what is owed etc.

So there is no harm in trying, and again do post on the debtfreewannabe thread as well, so others who have also reclaimed the PPI, should have some answers on this one for you, good luck.;)