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Claiming back PPI while on a Debt Management Plan

Hi

At the moment I am on a DMP with the CCCS and have been for the last few years.

I have just found paperwork for an RBS loan - loan of £4000 and PPI loan of £1556.32 - I don't remember discussing PPI or asking for it.

Because of the DMP, I am obviously on reduced payments and interest has been frozen. Is it possible to claim back mis-sold PPI on a loan that is in arrears and reduced payments being made on? If I was able to claim back this £1500 I take it this would go straight to reducing the balance of the loan?

I'm worried that by being on reduced payments and then claiming back PPI that the bank will turn round and ask for payment in full from me - can they do this? I have been making regular monthly payments on the agreed date since my DMP was put in place.

Any help/advice would be great.

Cheers

Comments

  • dunstonh
    dunstonh Posts: 121,289 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is it possible to claim back mis-sold PPI on a loan that is in arrears and reduced payments being made on?

    yes. You can make a complaint irrespective of your financial position.
    If I was able to claim back this £1500 I take it this would go straight to reducing the balance of the loan?

    They can use any refund of premiums to reduce any defaults/arrears/amounts written off (by them). You get the interest if added.
    I'm worried that by being on reduced payments and then claiming back PPI that the bank will turn round and ask for payment in full from me - can they do this?

    No.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • thanks very much for this, will get onto it tomorrow
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