Outstanding bill (under 6 years) and claiming PPI

CLLC

Hello,

My mother has a few outstanding credit bills that have fortunately not tried to chase her debts in the past several years (she really couldn't afford to pay it back right now).

I was wondering if she tried to claim PPI, may they reignite these debts? may it be considered a form of acknowledging the debt and therefore restarting the 6-year non-enforceable rule?

I don't want to start claiming PPI for her to then find she gets nothing back and then a load of credit companies start chasing her again.

Any advice would be greatly appreciated.

thanks

dunstonh

I was wondering if she tried to claim PPI, may they reignite these debts?

If they are not statute barred, then yes, it could remind them that she has a debt.

if they are statute barred, then they cant.

However, whether they are statute barred or not, if a PPI complaint is successful, the redress can be used to set off the unpaid debt.

[Deleted User]

CLLC wrote: »

I don't want to start claiming PPI for her to then find she gets nothing back

If she makes a PPI complaint to a lender to whom she owes outstanding debt any redress (should it be awarded) would simply be offset against the debt.

Probably wise to let sleeping dogs lie.

CLLC

dunstonh wrote: »

If they are not statute barred, then yes, it could remind them that she has a debt.

if they are statute barred, then they cant.

However, whether they are statute barred or not, if a PPI complaint is successful, the redress can be used to set off the unpaid debt.

Risky business! I may chase the ones that i know are over 6 years for her. really don't want to cause her any hassle

[Deleted User]

CLLC wrote: »

Risky business! I may chase the ones that i know are over 6 years for her. really don't want to cause her any hassle

As said, any redress will simply be offset against the unpaid debt.

So, unless she owes considerably less than the likely amount she might be refunded, the whole exercise will be a waste of time.

CLLC

Moneyineptitude wrote: »

As said, any redress will simply be offset against the unpaid debt.

So, unless she owes considerably less than the likely amount she might be refunded, the whole exercise will be a waste of time.

Even if it is statute barred?

[Deleted User]

CLLC wrote: »

Even if it is statute barred?

Yes, "statute barred" just means that the debt can no longer be chased through the courts. It doesn't mean the debt no longer exists.

dunstonh wrote: »

whether they are statute barred or not, if a PPI complaint is successful, the redress will be used to set off the unpaid debt.

CLLC

Moneyineptitude wrote: »

Yes, "statute barred" just means that the debt can no longer be chased through the courts. It doesn't mean the debt no longer exists.

Thank you! Just another question: Sorry

My mother had a barclays loan several years ago for £15k which has been paid off, if we get PPI back on that.

can they use that money to clear another one of there products. I.e barclaycard (which she owes money on)? or will it be treated as 2 seperate entitities.

dunstonh

CLLC wrote: »

Even if it is statute barred?

Statute barring does not mean the debt has gone away. it still exists. It just means they cannot use the courts to recover it.

The PPI redress rules allow lenders to offset the redress against debts that are statute barred and debts previously written off (as well as arrears and defaults). All quite common sense really as why should they refund something that wasn't actually paid for in the first place.

My mother had a barclays loan several years ago for £15k which has been paid off, if we get PPI back on that.

can they use that money to clear another one of there products. I.e barclaycard (which she owes money on)? or will it be treated as 2 seperate entitities.

Unrelated PPI redress cannot but used against other debts.