PPI, Defaults and Trust Deeds (Scotland)

batpb1

Hi there,

I am looking into my mothers finances as she has got herself into some difficulty.

She had a number of loans, cards etc some with PPI on them, they are from the correct time scale etc for reclaiming.

Around a year ago she defaulted on several accounts and eventually these were wrapped up into one payment in the form of a "Trust Deed" (Scotland)

My question is can I try to get any PPI costs back on her behalf even though she has defaulted on the accounts in question and is not in a Trust Deed, if so would any funds recovered go towards paying off the defaulted accounts or straight to her and would I need to involve the administrators of the Trust Deed at all?

She is very reluctant to recover any this as she feels she has 'cheated' the banks by defaulting!

Thanks for any input.
Regards,
batpb1

di3004

Hi and welcome

I'm sure someone will have the correct answers here and will post up soon or maybe tomorrow now.


I understand in my opinion you can make a reclaim on her behalf with her permission, where your mum will also have to sign as well as yourself.

Do you know if your mum was mis sold the insurance (PPI)?

I would check for more details on the link below, which takes you to the reclaiming questionnaire - you complete whoever set up and sold the policy from the start, as they are the ones responsible, keep copies of everything you send and receive, if your not happy with the final outcome, then you can make a complaint to the financial ombudsman service (FOS).
The bank/loan/credit card company will confirm a final decision in a letter with details of the FOS.

Hope this helps for now, but hopefully someone else will give some advice on this too.
Good luck.

Reclaiming guidelines.....
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#checklist

Reclaiming questionnaire to send to whoever mis sold/set up the policy.
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#reclaim


If the accounts are still active, and your mum had a payment plan, the ppi does not help, as its added to the debt balance of the loan, and in this case also worthless as well.

Good luck.
Please keep us posted and fingers crossed someone will be along to give further advice on this too.;)

Common_Sense_2

If you claim back PPI on any of the agreements included in the Trust Deeds then any refund will be offset against the companies losses when your mum went into a trust deed. That's because they lost money when she defaulted and so they have a right to claw some of that back.