DAS and PPI Refund

ybc

Hi Everybody....just a quick question here...my OH and myself both hold a Debt Arrangement Scheme where we pay our monthly amount to an agent and they distribute it between our creditors (separate account with the agent). My Husband has now started to re-claim PPI and it looks that he is due a few thousand pounds. The initial idea was to pay a lump sum into the DAS and keep a little for ourself to get the things we had to save up for the last few years with it being quite strapped for cash paying off the DAS. Do we have to declare how much we are getting in PPI or can we just offer the agent a lump sum? Or even worse will they take all of it off us?

If somebody had any knowledge about this it would be greatly appreciated.

Thanks,
YBC

Nasqueron

Are any of the people you are complaining about PPI to in the DAS?

ybc

#Nasqueron, no, none of the people are in the DAS and it is only my husband who is claiming for PPI.

Phoned Citizen's Advice and they told me that all refund would be taken?!

Nasqueron

I know nothing a DAS I'm afraid (it's a Scottish thing right?) it's just if you/your husband had a debt to a bank and won a PPI complaint against them the bank can offset the amount of the refund against the debt.

I would suspect you will need to notify the DAS people and tell them about the windfall but probably best start with someone like Scotland Debt on 0800 063 9250 (again assuming you are in Scotland) - you may well have to give up all the refund to your creditors but I wouldn't like to say either way

Insider101

ybc wrote: »

#Nasqueron, no, none of the people are in the DAS and it is only my husband who is claiming for PPI.

Phoned Citizen's Advice and they told me that all refund would be taken?!

Citizens Advice are worse than useless when it comes to this sort of stuff. But AFAIK they are correct here. The DAS should have an insolvency practitioner dealing with it. The money will likely go straight to them.

coolcait

If you're in the Debt Arrangement Scheme, then it should work like this:


- you have a money adviser who helped you set it up. Maybe for free, if you went through CAB, or the Council money advice team or a debt charity. Maybe for a fee, if you went through an Insolvency Practitioner, or other private company.


- you pay your money to a Payments Distributor, and they pay your creditors.


- if you get a PPI refund, and the creditors are included in the DAS, they'll probably set off the PPI against the debts in the DAS.


- if you get a PPI refund, and the creditors aren't included in the DAS (so the DAS started before 13 December 2014 - because all debts have to be included in a DAS started after that date), then they should send the money to you.


- if you want to use the PPI to pay a lump sum into the DAS, just call your Payments Distributor and make the payment.


- if you want to try to get a full and final settlement sum from the creditors first, you can do that yourself, of your money adviser can help with it.


- once you have the FF figures agreed, your money adviser should apply to the DAS Administrator for a 'variation' of the DAS. Once that's agreed, you can pay the Payments Distributor.