Ppi & dro

Bubblesmoney_2

Hiya I'm hoping someone might be able to offer me some advice. I have recently spoken to National Debtline to try and get help with my debts and they have advised my best option is a DRO. I have received the application to fill in but have not yet completed it. Today I got a letter from HSBC offering to repay my PPI, I know if I had the DRO it would be affected but as I haven't yet applied do I have to use this money for debts? It is not enough to clear my debt by any means otherwise I would. Basically am I able to accept the offer and use the money how I wish and then apply for a DRO?
any advice would be gratefully received!

caz2003uk

As far as I am aware if you receive any "windfalls" they would need to paid across your creditors evenly, so not to make a preferential payment to any creditors.

You are not allowed any savings etc of more than £300 for a DRO

I'm sure if I'm wrong someone will correct me but that's how I believe it to be!

Shak1rak

caz2003uk wrote: »

As far as I am aware if you receive any "windfalls" they would need to paid across your creditors evenly, so not to make a preferential payment to any creditors.

You are not allowed any savings etc of more than £300 for a DRO

I'm sure if I'm wrong someone will correct me but that's how I believe it to be!

That's correct

National_Debtline

Hello there, should you wish to continue with the DRO you will need to use the PPI refund to make pro-rata payments to all of your creditors; this will ensure that you have treated everyone fairly - and like caz2003uk has mentioned ensure that you don't treat anyone with a preference.

Depending on the amount of the refund you could consider making an offer of Full & Final settlements to your creditors; more information about that can be find via our fact sheet:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Best wishes,

National Debtline.