Reclaiming ppi if in arrears

FBBUK

I hope someone will be able to help me. I watched Martin on This Morning and understood from his interview that companies cannot take any PPI monies owed from the balance of a credit card if you are in arrears. They can, however, take it from the arrears only. ie - Credit Card Balance £10,000 with arrears of £1,200. PPI claims payment of £2,400 minus arrears of £1,200 = cash back of £1,200. I have agreed a payment plan with my credit card companies and interest has also been stopped. I'm worried that they will take any monies owed from the balance and not the arrears and I will still have to pay the PPI company that I'm using.

dunstonh

I watched Martin on This Morning and understood from his interview that companies cannot take any PPI monies owed from the balance of a credit card if you are in arrears.

If you are in arrears, defaulted or had amounts written off then the lender can use the capital refund against the debt. The interest element should be paid out.

You are not actually in arrears. You have defaulted and are on a payment plan. So, be prepared to see the whole amount used against the debt.

I will still have to pay the PPI company that I'm using.

You should never use a claims company when you are in arrears, defaults or had amounts written off. They bill you against the total amount of refund. Even if part or all of it is used against the debt. People have found they end up having to find money to pay the claims company as the refund they got personally did not cover it.

FBBUK

Thank you for clarifying.

I've now received a letter from Barclaycard (who I've been paying PPI to for approximately 8 years) stating that I submitted my application for PPI online so as no advice was given the process required me to select the specific type of cover I required. They have conducted a review and are satisfied that the documentation presentaed accurately described the scopy of the policy. They are therefore not able to uphold my complaint and the policy has now been cancelled. I genuinely thought it was compulsory when I applied for the credit card and it may have even been ticked at the time but unfortunately as it was so long ago I don't remember exactly.

dunstonh

I genuinely thought it was compulsory when I applied for the credit card and it may have even been ticked at the time but unfortunately as it was so long ago I don't remember exactly.

What you felt dosnt matter. No sales agent was involved. So, they didnt sell it to you. For online applications, the only real hope of success is if the application was pre-ticked to have it (or reverse ticked as in tick to not have it). However, your explanation appears to be that you thought you should have it. That indicates mis bought. Not mis-sold.