Do I have to repay an outstand debt with a PPI claim?

falko89

I am on a DMP with Payplan, when I signed up they asked could they pass my details to Stake Your Claim to see if I had any PPI, I said OK.

Last week stake your claim got back to me saying they got an offer from welcome finance and welcome also sent me out a letter. Basically its as follows

Debt Owed £909
PPI Owed £950


So they gave 2 options,

Option 1 - Repay the debt and receive the rest in cash.
Option 2 - Take cash at £750

Now either way I owe Stake Your Claim £150 in fees so option 1 would put me in debt as I can't afford the fees, But since Payplan got wiff of this they have been torturing me daily via email and phone about repaying the debt, I had actually thought about using the money to fill our oil tank as last winter we where living on the drums of emergency heating oil which you pay over the odds for.

Any advice?

[Deleted User]

I don't think you'll be buying any oil..

dunstonh

I assume option 2 is you getting £750 and the debt getting the rest? If not, then there is theft involved in there.

falko89

dunstonh wrote: »

I assume option 2 is you getting £750 and the debt getting the rest? If not, then there is theft involved in there.

I don't have the list in front of me but its something to do with fees or what ever.

falko89

Moneyineptitude wrote: »

I don't think you'll be buying any oil..

Fly's around dung springs to mind, In theory option 1 would be the best option would it not be for putting me into debt.

amersall

I thought you had to be told when on a debt plan that you may end up
"in debt" ? if you win a mis sell with the fees to be paid to the company that claimed.

[Deleted User]

falko89 wrote: »

Now either way I owe Stake Your Claim £150 in fees so option 1 would put me in debt as I can't afford the fees

Aren't you already in debt :huh:

As I see it, option 1 will just leave you in a lot less debt.

[Deleted User]

amersall wrote: »

I thought you had to be told when on a debt plan that you may end up "in debt"?

It's the administrator of the Debt Plan who suggested complaining through the company concerned. Now Payplan are telling the OP to pay off the large part of his debt, leaving only the CMC's commission to pay.

It's difficult to see how the OP "cannot afford" the £150 to the CMC, since he can arrange to pay this instead of his current debt plan which will be wiped.

Bedsit_Bob wrote: »

As I see it, option 1 will just leave you in a lot less debt.

Exactly.