DMP with Payplan and PPI

bintie22

Hi

I had to enter into a DMP with Payplan about 6 years ago, and have stuck to religiously since the day it started.

When I started it I had about 20k of debt, 7k loan with Egg, 5k Barclaycard, 6k ish with Lloyds Loan and an overdraft. Egg definitely had PPI and I'm sure the Lloyds loan did too. I'm not sure about Barclaycard.

I had a phone call from Stake Your Claim (via Payplan) asking me if i would like them to investigate PPI-mis-selling on my behalf, I have said yes. I know that this is something i could have done myself, however i'm struggling to keep my head above water with running my own business and a growing family and all the paperwork that that entails without taking on anymore administration. :eek:

My question is (and i'm not sure if i should have posted here or on the Debt Free Wannabe Board), has anyone on a DMP claimed successfully. And did they get a cheque back or was it deducted from the amount outstanding on the DMP? I'd be happy for either to happen, but just curious to know what was the most common result.

Thank you in advance!

Cath

[Deleted User]

Even if you are successful, you'll also pay a huge proportion of any redress to Stake Your Claim. I'd cancel now if I were you and do it myself.

bintie22

I'm aware of their 12% fee, but I'm still interested in my original question.

-taff

The most common result is that the redress is paid to the debt. Then you're left with a bill from the claims company that you will still have to pay....

[Deleted User]

You could end up owing this 12% as an extra debt if your redress goes towards your DMP.

bintie22

Thank you, your advice is appreciated.

dunstonh

People in arrears, defaults or had amounts written off should never use a claims company. The CMC bills on the full amount of redress paid. Even if you never directly receive a penny (because it goes against debt)

magpiecottage

You should make a formal complaint to Payplan for recommending this as they know, or ought to know that you will end up with a further debt that you have no funds to settle.

Ironically, you can actually take Payplan to FOS over this as well because it is providing its (dis)service under a Consumer Credit licence.

bluevicky87

Hello there! :j

I used them last year after enquiring through Payplan about using Owl Claims (who were going to charge me 30% + VAT) and I paid them their rate of 10% plus VAT of the amount received back. I was sent the cheque directly from my bank and paid SYC immediately upon the amount clearing. The timeframe took less than 8 weeks to get a response which I was surprised about. I started the claim 28th June 2012 and received the response from my bank (dated on the 2nd) on the 10th August, with the cheque (just over £510 including the 8% interest) following 10 days later!

I am in a DMP and I was able to keep the money sent to me, Halifax did not detain the funds to offset the amount owed, the cheque was sent to me directly. After further investigation into my accounts; SYC were informed by Halifax (after enquiring about a completely different account) that I had PPI on another product I was not aware of and sent me the paperwork to fill in 5 weeks ago, I am expecting a response letter in the next few weeks as it has been 4 weeks since the complaint was sent off.

I paid SYC £62 as their fee (of 10% plus VAT), but had it been offset, they assured me that Payplan would organise a payment plan from the excess I would have had freed up from the amount paid to the DMP coming down, so I wouldn't have had to pay any extra.

You may or may not get your money back if you receive a refund but I thought I would tell you my story, hope you got what you were looking for in an answer.