DRO and PPI

jenniewb

I took out a DRO in 2009 and it was accepted. I used my DRO to deal with a loan I had with a bank and it was my primary reason for the DRO. It was accepted by the bank in 2009.

I was since written to a number of times this year, by the same bank asking me to make claims for PPI. Eventually I made the claim, it wasn't something I thought I'd be entitled to because of the DRO. However, I thought I may as well as I was a little curious and it would stop them sending me so many letters!

I've just had a letter back from the Ombudsman awarding me some money, to most its money they'd probably blow overnight on a holiday. To me it is a huge amount, it would be very useful right now. However, I don't know if I am entitled to this money, doesn't it go right back to the bank? It was the Ombudsman who told me, but on bank headed paper so I'm not so sure who is offering to pay me this but surely if the bank are aware of my debt relief order and any money would just be swallowed up by this.

I don't want to accept this money, have it arrive and use it only to find the bank writes to me a few weeks later and makes requests on the money which I'd be legally obliged to meet.

Does anyone have any answers or places to go for help? The people who helped me with my DRO have since had to close due to government cuts so I don't know where else to go.

fermi

Some info in this thread ---> https://forums.moneysavingexpert.com/discussion/4005043

jenniewb

Thankyou

wba31

Enjoy your windfall

I see a number of clients claiming back the PPI pre-DRO, which reduces the debt down. Often their debt was below £15k before, and the PPI simply reduces it further (thus not making much difference in the scheme of things...) I wish people would wait until the DRO is over, and then see the benefit of the refund for moving forward...

fatbelly

Spanner in the works time...

The final post in the thread Fermi linked to concerned 'post-moratorium offsetting' i.e.the creditor paid it against the debt even though the moratorium had finished and the debt 'discharged'. No-one responded to that post.

Over the past few days there has been a bit of discussion on the wiseradviser site and the following has just been posted by one adviser:

Thanks guys, had some feedback from the OR (not directly), offset post moratorium is acceptable as the PPI award is intended to reinstate the previous position, apparently FOS are also going with this line. Also some issues with lump sum awards post moratorium as the OR retains the right to revoke a DRO if they feel the client is in a better position. Looks like we need to be taking great care when advising on DRO and PPI claims.

Any hard info on this would be appreciated.