Re Claiming PPI on an account that is settled but was not fully paid

harveymail

A quick question if you do not mind. I am trying to help a friend and the case is this, he had a catalogue and paid PPI on it, got into difficulties and could not afford to pay, requested a CCA and all that goes with it, the catalogue company agreed they could not enforce the debt and ceased colllection activity. The account is also marked as settled on his credit file, due to drop off some time this year (6 years since he last made payment).

So could he reclaim the PPI as he did have existing medical conditions when he opened the account and paid PPI which can be verified by his GP if needed?

Also do you need to know how much you are reclaiming or do the company just work it out as he does not have any statements to refer to.

Many thanks for any help

dunstonh

So could he reclaim the PPI as he did have existing medical conditions when he opened the account and paid PPI which can be verified by his GP if needed?

He can complain yes. However, if successful, they can use the redress payment against the debt owed and not pay him a penny unless the PPI amount is greater than the debt.

harveymail

dunstonh wrote: »

He can complain yes. However, if successful, they can use the redress payment against the debt owed and not pay him a penny unless the PPI amount is greater than the debt.

Even though the debt is marked as settled and they have told him they cannot enforce the debt and then marked it as settled?

Thank you for your time

magpiecottage

harveymail wrote: »

Even though the debt is marked as settled and they have told him they cannot enforce the debt and then marked it as settled?

Yes - the fact that they cannot recover the debt from him does not prevent them from setting any redress they owe him against that debt.

harveymail

magpiecottage wrote: »

Yes - the fact that they cannot recover the debt from him does not prevent them from setting any redress they owe him against that debt.

Ok thank you, at least we know for certain now. Thank you for your advice and taking the time to reply.

dunstonh

he still owes them money. They just cannot collect it from him via court. So, if they decide to refund him (Assuming his complaint is successful), they then owe him money. So, they can just offset it.

Also, seeing as the court cases on unenforceable credit were only done a couple of years ago and these set some ground rules in place, he may be better to let sleeping dogs lie on this one if it is about to drop off his credit file. The stance nowadays is to leave the credit showing as unsettled and in arrears and not just for 6 years from the date of arrears began.