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PPI and debt management plans

This has been glossed over by this site. There is no information that definitively answers this question. There are vague attempts but it is clear you do not know the answer so can you please answer the actual question. Which is; I cleared a debt management plan a year ago. I made reduced offers on all outstanding amounts and got debt free. I am out of reach of my ex creditors, I think on time barring. If I go for PPI reclaim, which came about from those debts, is it possible that my creditors can treat this as reopening my debt and chase me for another six years. I have heard this said. Are you aware of any cases? It has also been stated that my ex creditors may keep any money I get to put against the shortfall of what I owed and what I paid. I did go to a national PPI advertiser and they dropped me when I asked them these questions. This aspect of PPI is clearly in the public interest and will benefit many people in my position. Thank you.

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    davec47 wrote: »
    ...
    If I go for PPI reclaim, which came about from those debts, is it possible that my creditors can treat this as reopening my debt and chase me for another six years....

    No, once a debt is statute barred it cannot be revived.
    davec47 wrote: »
    ...
    It has also been stated that my ex creditors may keep any money I get to put against the shortfall of what I owed and what I paid.

    Yes they can. Once a debt is statute barred it only prevents the creditor from seeking recovery through the courts. Other forms of recovery continue.
  • dunstonh
    dunstonh Posts: 121,299 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I did go to a national PPI advertiser and they dropped me when I asked them these questions.

    That is good to hear. Some of the less scrupulous ones would have carried on and you could have ended up with a bill despite not receiving the money personally. They bill against the redress. Even if the redress goes against the debt that went unpaid.
    This aspect of PPI is clearly in the public interest and will benefit many people in my position.

    Which is why the rules are well documented.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thank you for this advice. Now clear _ no claim. Hope this helps others.
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