PPI reclaim when have a charging order

Jasper_Cat_2

Having recieved an offer letter for ppi reclaim from RBS, I just wanted to ask if anyone has been in a similar situation or may know the answer - Having had a RBS loan with PPI in 2000 , I was then off sick from work in 2002 and when I tried to claim the PPI was told had pre existing medical condition when took out loan so unable to claim. This was the basis for my ppi claim which seems to have worked as recieved offer of over £9,000.
However, when I went off work and was unable to claim the ppi, i spoke to the bank, kept them informed all the time ( they even tried to get me to take out further loan to consolidate!) but as it was I did not return to work until 2006, part time. Throughout all this time I managed with the help of citizen advice bureau to negotiate payments and kept to them , however RBS took me to court to try and get higher payments than i could pay, the court kept the payments to the same i had originally offered ( but of course the court costs were added to my balance), then RBS applied for charging order on my house in 2009 (AGAIN COURT COSTS ADDED). This was done and court set £30 a month payment until loan paid off. All dealings now with irwin mitchell. I have gradually increased this monthly payment to £60 a month. I currently own approx £13,000. I am now aware that the ppi offer will probably automatically go to pay off debt , ( never had it so wont miss it and if it pays off rbs - great ) but do you think it is possible to negotiate a settlement figure with irwin / rbs , . If i carry on at current £60 a month = 17 years. or if ppi goes to pay off it is 75% paid. Would they possibly settle for this or would it just go as part payment and still take further 5 years to pay off as there is still the charging order on the house.
I have not sent the signed offer letter yet as not sure if should phone irwin to see if chance of settlement or just not make waves !
It would be great to be rid of one debt as still others to deal with
Advice would be greatly appreciated

dunstonh

I tried to claim the PPI was told had pre existing medical condition when took out loan so unable to claim. This was the basis for my ppi claim which seems to have worked as recieved offer of over £9,000.

You couldnt ask for a more solid complaint reason and a payout is clearly the right outcome.

I am now aware that the ppi offer will probably automatically go to pay off debt , ( never had it so wont miss it and if it pays off rbs - great ) but do you think it is possible to negotiate a settlement figure with irwin / rbs ,

They are allowed to use the redress payment against the debt so you should be prepared for that. However, nothing stops you asking if they will accept that as settlement. Maybe if they dont first agree, suggest that you give them the interest payment from the PPI refund (they keep the capital payment but should pay you the interest). They may accept it then.

It wont make waves and if you dont ask you dont get.