Reclaiming PPI whilst in Debt Management

dan1109

Hi

I hope you can help me as I am a Newbie on this site and this is my first post!

My husband is with a Debt Management Company for 3 debts he has with Natwest and whilst we've just been looking throw some old paper work we've just discovered that he had his loan protected which he was completely unaware of. This loan has now been defaulted on but we think he must still be paying the PPI amount. Is it possible that he could claim back this PPI? We understand that they may just take it off the outstanding debt and even if they do its still a bonus to us. Also is it easy to do ourselves or should we just use one of the companies that offer to do it for us for a fee?

Sorry if this is a common question!

Thanks

marshallka

dan1109 wrote: »

Hi

I hope you can help me as I am a Newbie on this site and this is my first post!

My husband is with a Debt Management Company for 3 debts he has with Natwest and whilst we've just been looking throw some old paper work we've just discovered that he had his loan protected which he was completely unaware of. This loan has now been defaulted on but we think he must still be paying the PPI amount. Is it possible that he could claim back this PPI? We understand that they may just take it off the outstanding debt and even if they do its still a bonus to us. Also is it easy to do ourselves or should we just use one of the companies that offer to do it for us for a fee?

Sorry if this is a common question!

Thanks

Hi, yes, if you have reasons for misselling then you can make complaints even when on a DMP. They do mostly take it from your debt with them.

If you need help in reclaiming then please ask away, otherwise there is a PPI reclaiming guide here


http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

You make the complaint to whoever sold you the insurance and then give the firm 8 weeks for a full and final response.
Send everything recorded delivery so you have a proof in case it has to go further. I would always try to do your own letter from the template with your own reasons etc.

kpwll

The first thing to do would be to cancel the PPI. The next is find out if you have a valid reason for claiming.
It will be taken off your outstanding balance and it is easy to do it yourselves. The amazing Big Guns (new name for you, lol) will be along soon and they will help with all your questions. Good luck.

dan1109

Thank you for your advice! Its worth a try we've got nothing to lose and even if the money is paid off the debt its still in our favour. Thanks again!

di3004

dan1109 wrote: »

Thank you for your advice! Its worth a try we've got nothing to lose and even if the money is paid off the debt its still in our favour. Thanks again!

Defo give it a go, good luck and keep at them.;)

new_to_the_game

Hi dan 1109,
I'm not sure about them taking it off your debt as the outstanding amount you owe surely needs to be recalculated as if it was'nt on it especially if it was loaded up front!
I have had correspondences from the FOS and in one of the paragraphs I am sure it states that the refund can not be taken and used to offset the balance by the lender, yet if you wish to use it to offset the balance then that is your choice.
What you need to remember is that if the PPI was mis sold then in theory you are paying for more than you originally asked for! and you are entitalled to do with any reimbersment made to you as to what you want.
They have to recalculate the loan had you taken it out without PPI and therefore your debt will already be lower, so anything you have been paying is more off the balance than they have calculated (if you get that).
so lets say you have £4k on the loan which has defaulted and you pay £100 pm just on this debt and £25 pm is for the PPI, then since you took the loan out prior to financial difficulties and say you have paid 12 months on a 60mth loan, then they have to recalculate the original loan without PPI, pay you back all of the PPI payments you have made +8% interest up till the settlement of your claim (and in my cases an additional £100 compo for the privelige of you being mis sold it in the first place) which you should then be able to decide wether or not you wish to pay it onto your balance or go out for a romantic meal. I beleive the choice should be yours.
However, I may be wrong in this case, but if I read the facts right from the FOS they are not legally entitled to use the payback for your debt to them.
I will dig out my correspondence from the FOS which states this and get back to you.

Regards Chopper