Credit file and PPI claims

linkasi

I have just begun the process of submitting claims to lenders for mis-sold PPI, but I am worried about the consequences in relation to debts I have on the products in question. I have checked my credit file with Experian and the credit agreements I am claiming PPI for are all in default and their current status is 'Default/Ended' (there are three of them). However they all have an entry for 'Account Settled' followed by a date, even though only one of them shows a current balance of zero. The others all show the default balance. They were all defaulted less than 6 years ago.

I have done some reading up on the wisdom of trying to claim PPI when you are in default on the product you are claiming for, and it seems that basically it is still worth pursuing the claims as long as you are prepared for the possibility that the lender will subtract your debt from anything they owe you if your claim is successful. As I am not currently being pursued by these lenders or by credit agencies and I have not had any correspondence for more than 18 months regarding the debts, I am wondering:

Is this because they are regarded as 'settled' by the lenders and does this mean they are likely to leave me alone until 6 years have passed since they were defaulted and they become statute-barred?

Will my PPI claims lead the lenders to begin recovery proceedings against me in the event that I am unsuccessful or if I am successful and the amount I am awarded is insufficient to cover the debts? And will this then re-start the clock as far as the 6 year period after default is concerned?

I believe I am owed a significant amount in mis-sold PPI and should be able to prove it but I am not that confident that it will be more than the balance on these defaulted accounts, if I am successful. I don't want to end up being chased for debts that currently don't seem to be 'on the radar' and I am happy to sit it out for the remaining years until they hopefully become statute-barred; but on the other hand I do want to make the PPI claims as I am pretty confident of success.

I have just sent claims enquiries to the relevant banks using the 'Which?' online tool and intend to pursue the claims myself and not with a third party agent.

Any help with these questions will be much appreciated, thanks in advance!

boo_star

I wouldn't chase a PPI refund myself unless it was going to come close to paying off the debt and I was prepared to pay the rest off.

I'm not sure how you can claim for PPI and not reset the clock on the debts.

National_Debtline

Hi linkasi and welcome to the forum


You do need to be cautious about making a PPI claim on a debt that is not yet statute barred. You may find that your request could be classed as a written acknowledgement of the debt and restart the 6 year limitations period.


It is also possible the contact will prompt your creditors to start pursuing you for the remaining balance. I would weigh up the pros and cons before proceeding.


Best wishes


Susie
@natdebtline

linkasi

Thanks for the responses. That's kind of what I was thinking myself...

I don't think I can withdraw my initial claims enquiries but I guess I can stop pursuing them and hope that the lenders accept that!

Can anyone shed any light on the meaning of the term 'Account Settled' on my credit file? Does this actually mean that those lenders have accepted the small amount I paid towards the debts in the past as full and final payments and is this what they have not been pursuing me?

Also for one of the debts, the current balance is zero. I know it sounds crazy but I actually can't remember now whether I paid the debt off in full (it wasn't a huge amount) and that's why the balance is zero; or again, whether it's because it has been written off by the lender. This is the only one that is showing a current balance of zero. Does this mean that I should perhaps limit my PPI claim to this lender? Surely if there is no longer a debt with them this shouldn't be a problem?

Thanks again for your help!

Nasqueron

If you have debts, even if written off, they still exist, just the lender agrees to not chase them any more (or is SB from doing so).

They are allowed to offset any PPI refund against unpaid debts and the remainder (if any) can come to you. There are some circumstances this won't apply e.g. if they sold the debt on with no way to recall it.

Remember also it is a complaint, not a claim. You say you were miss-sold, you present your evidence and see if they agree - if they can allocate the money and offset and clear their balances though they probably will just pay out

Make sure you do not use a claims firm to do this as you may get no money but still have to pay the claims firm

National_Debtline

linkasi wrote: »

Thanks for the responses. That's kind of what I was thinking myself...

I don't think I can withdraw my initial claims enquiries but I guess I can stop pursuing them and hope that the lenders accept that!

Can anyone shed any light on the meaning of the term 'Account Settled' on my credit file? Does this actually mean that those lenders have accepted the small amount I paid towards the debts in the past as full and final payments and is this what they have not been pursuing me?

Also for one of the debts, the current balance is zero. I know it sounds crazy but I actually can't remember now whether I paid the debt off in full (it wasn't a huge amount) and that's why the balance is zero; or again, whether it's because it has been written off by the lender. This is the only one that is showing a current balance of zero. Does this mean that I should perhaps limit my PPI claim to this lender? Surely if there is no longer a debt with them this shouldn't be a problem?

Thanks again for your help!

Hi again linkasi


I'm afraid it's very unlikely a creditor will write off the debt or accept a full & final settlement without you having asked them to do it. But it is quite possible that the original creditor has sold the debt on and updated the entry on your credit file to show that you no longer owe them anything.


The debt collection agency (DCA) that bought the debt can add their own entry on your credit file showing that you now owe them the money. They do not have to register the debt which could explain why it is not showing, or they may have used one of the other credit reference agencies.


Have you checked your credit file with all 3 of the credit reference agencies? It may be worth doing that to find out exactly what is showing.


Best wishes


Susie
@natdebtline

sourcrates

Hi Linkasi,


Sometimes debt collection can take a long time, if a debt is showing as settled, and you know you have not settled it, then its likely the company have sold the debt on, as you can appreciate, there will be many hundreds of thousands of accounts such as yours.


The new owner has to decide which debts may be recoverable fairly quickly, which may take longer, and which may be unrecoverable for whatever reason.


For example, they may not have a full name, or the address details may be incorrect, or any one of 100 reasons why they cannot currently chase you, the PPI claim may just give them the piece of the jigsaw they need, or may just wake them up, so i would advise caution.

linkasi

Thanks so much for the help and advice! That makes it all a lot clearer now...