Looking for a little advice please

malkyh

Hi all,

My wife took out a loan in 2004 with Lloyds. She was told at the time that without accepting the PPI she would not get the loan. She got into a bit of financial trouble and ended up on a DMP though Payplan. Lloyds froze the interest and charges and she has been paying this back each month (small amount as currently she is out of work).

My question is, can she claim back the mis-sold PPI even if she is in a DMP?

If so, I understand any successful money claimed will go towards the loan balance due which is quite understandable. However, if the amount received is not enough to clear the loan balance, will Lloyds be able to cancel the agreement with payplan and demand the oustanding balance as a whole?

Payplan_company_representative

Hi malkyh, you she can try and claim back any PPI that was mis-sold to her when she is in a DMP. However she may find that Lloyds will take the PPI settlement off her debts with Lloyds.

malkyh

Thanks for your reply. Is there a danger Lloyds could then decide to cancel the arrangement through Payplan?

amersall

Ring Lloyds and ask, or the people your friend has the plan with, that way they will know for sure, get it from the horses mouth.
I would have thought that the debt would be reduced and if your friend continued the plan then the debt would clear faster, if she cannot afford to pay this now then why would she be any better off after the redress?.

malkyh

amersall wrote: »

Ring Lloyds and ask, or the people your friend has the plan with, that way they will know for sure, get it from the horses mouth.
I would have thought that the debt would be reduced and if your friend continued the plan then the debt would clear faster, if she cannot afford to pay this now then why would she be any better off after the redress?.

I don't quite get where your coming from. If the debt was say £4k and she got £1k back from the PPI then she'd only have to pay back £3k through her current arrangement so yes, she would be better off, technically as she'd pay off £1k less.

She is paying it off, albeit slower than hoped due to the reduced payments now being made due to being out of work for the moment.

amersall

I meant that if the redress was taken off the loan balance why would the bank cancel the agreement that is already in place?, your wife will not be in a better position financially than she was before the redress so they should keep to the agreement they have with her now, if they do cancel the arrangement she should ring them back up and tell them she needs a new arrangement as she is still in the same financial position as she was previous.

malkyh

Ah, I get you now. Thanks for the advice. Appreciated.