PPI claiming whilst on a DMP

lornao1

This is my 1st post on this subject so I hope someone can answer a question I have. I am on a DMP with CCCS and have just made a complaint against Capital 1. The question I have is I owe £500 to them. If I win my case against them and the payout is more than I owe what happens to the balance, will this go to CCCS to pay off some other debts or will the balance come to me ?

Hope this makes sense

Thanks

amersall

They will use redress towards the DMP, if you win and get the 8% you keep this amount.

lornao1

Thank you for your prompt replay, I am sorry if I am being a bit dim but would Capital 1 send any money that was left over after paying off the debt straight to CCCS ?

amersall

To get concrete evidence on this, you need to post the question here

http://forums.moneysavingexpert.com/forumdisplay.php?f=159

They know more regarding this.

magpiecottage

amersall wrote: »

They will use redress towards the DMP, if you win and get the 8% you keep this amount.

Not quite true - the redress, including any interest awarded on it (less tax) will constitute a debt owed by the lender to the OP. This can all be set off against a debt owed by the OP to the lender. Only after that would any surplus be released.

amersall

magpiecottage wrote: »

Not quite true - the redress, including any interest awarded on it (less tax) will constitute a debt owed by the lender to the OP. This can all be set off against a debt owed by the OP to the lender. Only after that would any surplus be released.

Thanks for that

dunstonh

There have been a few cases where the 8% interest has been paid out though but the capital element retained. I think that is why there is some confusion. Some banks/firms don't always do what you expect them to do.