with PPI redress on a Dmp, is the whole PPI removed from the loan

Icandothis2

with PPI redress on a Dmp, is the whole PPI removed from the loan?

Thanks in advance

Insider101

Icandothis2 wrote: »

with PPI redress on a Dmp, is the whole PPI removed from the loan?

Thanks in advance

Generally speaking, any refund offer would only be what you have PAID up until the point your loan defaulted. If, for example, your loan was £15,000 with the £3,000 PPI you have quoted on your earlier post, that £3,000 does not come directly out of your pocket at the start. It is added to the loan balance and you repay it as part of your monthly repayments. So if you only paid 1/6 of the repayments before your loan defaulted then the offer of £500 would be right (broadly speaking, it is a bit more complex than this in reality as interest is charged on the PPI premium and the monthly payments towards the PPI are not level).

However, when you first started missing monthly payments then the policy should have been cancelled automatically and the other £2,500 should have been rebated to your loan to reduce the balance. Might be worth checking your statements to see if this happened. If not then ask them to confirm that the other £2,500 will be reduced from the loan balance (this won't go directly back to you, but then if you are in a DMP they may also keep the £500 you have been offered to offset against your arrears).