PPI reclaim on Full & Final Settlement Accounts

6spoonies

Hi All

Years ago my husband got into a financial whirlpool with credit cards and loans. We sorted in out in the end and reached first a payment scheme agreement with creditors and then when he was made redundant we offered a full and final settlement figure to the creditors which was accepted.
My question is. On the cards and loans he did pay insurance whilst active, but when a full payment was agreed he signed a full & final settlement agreement and his debts were closed and no further action was taken.

Does this mean he can not claim for PPI on these accounts where we paid a full & final settlement figure
Thanks for any advice

[Deleted User]

Any redress will be offset against any amount he did not repay.

6spoonies

So you don't think it is worth the hassle of trying to dig out the paperwork
Thanks

[Deleted User]

Unless the settlement figure was fairly close to the sum owed, I think you could probably spend your time doing better things.

dunstonh

How much debt was written off?
How much PPI premium did you pay?

The redress will go against the write off. So, only the excess, if any, will come to you.

6spoonies

Was quite a big difference I remember, on most of the cards and loans Id estimate around 40% of what was owed was written off.

simmo2002

Hi,

I was on a debt management plan and in the end offered a full and finall payment on all creditors of about 40%. These were all accepted and then a few years later I claimed ppi and it got paid in FULL to me paid by cheque. The key is what was in your full and final settlement offer. Did you put a phrase that said something like ‘this offer is on the understanding that you do not persue any further payment in the future’? If so then they definitely can not offset it against what the reduction was that they gave. You could argue though that a Full and Final Settlement is exactly that, FINAL!

Interestingly I have just received an offer from NatWest based on Plevin and that is only a percentage offer if the PPI, they have a statement saying this is a full and final offer, which then at the bottom states full and final offer means that I will not be able to claim any further of the ppi. So if it is good for the banks then it should apply to you.

As I said go for it you will be surprised.

simmo2002

I meant to say the banks that paid out on ppi were NatWest, mint, hsbc, capital one, Amex and northern rock loans. All were settled at way under the amount I owed and all paid out PPI in full

dunstonh

simmo2002 wrote: »

I meant to say the banks that paid out on ppi were NatWest, mint, hsbc, capital one, Amex and northern rock loans. All were settled at way under the amount I owed and all paid out PPI in full

Are you in England or Scotland?

If England, you got lucky unless your debts were sold to third party collection agencies.

simmo2002

I am in England, seeing that all my creditors did the same with no hassle then I would not say I was 'lucky!'. It was probably a 50/50 split with ones that had been moved to third party collectors. If you have made a Full and Final Settlement then that is what it is FINAL, any PPI claimed after that date should all be yours!

dunstonh

I am in England, seeing that all my creditors did the same with no hassle then I would not say I was 'lucky!'.

You were lucky as the rules on this are defined and where the debt has not be sold to a third party, the lender can use the redress against any amount written off as part of an agreed settlement. That is the usual outcome.

If you have made a Full and Final Settlement then that is what it is FINAL, any PPI claimed after that date should all be yours!

That is not how it is in England & Wales.