DMP v PPI

Beansprouts

Hi all, I have been paying a dept management plan for 3 years now. My mortgage will be paid off next year. I took a loan out 4 years ago with the TSB for £25000. I have not claimed for the PPI on the loan yet. I also have another loan and a couple of credit card depts on the plan. My question is the mortgage will be paid off next year, if I claim forthe PPI on the loan, is there any way the bank can force me to sell the house to pay my outstanding depts?

Anondebtadvisor

When you are in a DMP there is nothing to stop creditors taking legal action against you and this includes obtaining a charge over your property. Reclaiming PPI will not affect this but may reduce your unsecured debts, which can only be a good thing

MusicalLawyer

What are you claiming on the PPI? That is was mis-sold?
You can only claim this, if it was actually mid-sold, simply having PPI doesn't mean you'll get a refund.

Beansprouts

Hi MusicalLawyer, Yes we was going to claim mis-sold, as I do not remember being asked about PPI when we took out the loan. Having said that, I can’t remember much about it other than being pressurised by the TSB for 3 ½ to 4 hours, to take a loan for £25,000. We only went for £12,000 at the time to pay off the shortfall on the main part of our endowment mortgage. By the time we got out of our local bank, whose doors had been locked for ages, our heads were spinning and it was nearly 6:00pm. It wasn’t till later, we realised they had added another £8,000 on as PPI, paid up front and just added to the loan. Making a grand total of £33,000. I know you could say that it is our own stupidity for not realising this at the time, but we had been with the same bank for over 20 years and we trusted them.