Ppi & dmp help 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 opened 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 deposit into my account once I have signed a new credit loan agreement which will be without the insurance.

I would rather 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 Payplan are currently doing? I haven’t told Payplan about the offer, do you think I should? Any help would be useful….

Thank you

Tixy

Hi

I'm not sure whether you can have the funds back - but I would have thought you should be able to - after all if they have agreed it was missold then its your money.

I would talk to Payplan about it and maybe ask on the reclaim board as someone there should know whether others have got the money paid back to them.

Charco_2

For a £23,000 loan, £1,300 sounds like a pitance... if you don't mind me saying so. Does this accurately reflect the amount of PPI you have paid over the course of thew loan?

Also, I would look carefully at what is contained in the new agreement you are going to sign... banks have been using this tactic recently to clear up any discrepancies there may be in your previous loan agreement!