My PPI was never activated and now im in debt...HELP!

spunkymunky17

I need some advice please! I took out a loan through Welcome Finance back in February 2008 for £1000. Once I had paid back quite a large chunk of it I was offered a "top up" loan whereby I took on a new loan, paid off the old one and had some cash left over to spend. the following year I was made redundant and defaulted on my loan. I contacted Welcome to inform them of my financial situation but they were unhelpful - a couple of months later they sent my loan to their collections department. I again explained the situation but offered to pay them back at a rate of £60 per month. This was declined and so it went on. I received all sorts of nasty letters for a few months but again they were demanding that I paid back a rate I could not afford. Eventually just before Christmas 2011 a letter dropped through my door from Welcome in conjuction with the FSA saying that I was mis-sold PPI! I WAS NOT EVEN AWARE THAT I WAS PAYING TOWARD PPI!!! I duly completed the claim form and returned. it is going through the process now but i have been told that any compensation will be offset againt my debt. My question is - I was unaware I had PPI, It was never activated when I was made redundant, was never mentioned to me and all the while my debt with them has increased. How the heck can they use any compensation due like that when it was their fault I got into the financial mess in the first place? if they had activated the PPI i would have been protected from the offset. Has anyone had this problem before and how do i sort it?

amersall

This is what the FSCS are doing with Welcome loans at the moment,if you are in hardship and need the money for other priority debts,council tax,gas and electric etc,then give FSCS a ring and explain this to them,it may help.