PPI claim after DRO. 14 February at 10:39PM in Reclaim PPI & Other Insurance 7 replies 102 views

Trousers321

HI,

I have applied for a PPI claim with Santander. I took out a £3000 loan with them and got into serious arrears and ended up in a DRO.
Can I still claim for PPI even if I still didn’t pay back the £3000 because it was all written off in the DRO?
The DRO ended over a year ago.
Thanks,

T

SonOf

You can complain about a PPi missale.  However, if successful, they do not need to pay you the redress as it would go against the amount written off.  Only any excess over the written off value would become yours.

Moneyineptitude

Trousers321 said:

Can I still claim for PPI even if I still didn’t pay back the £3000 because it was all written off in the DRO?

Regardless of how long ago the debt was "written off", the Bank have the right to off set that (still existing) debt against any PPI redress you might be awarded. 

However, if the PPI redress exceeds the amount still owed, then you will receive anything additional to that...

Trousers321

Well I just spoke to Santander and they said I will receive the PPI refund and the bank will take nothing because the debt has been written off. So there is no debt.

So according to them. You are both wrong.

robber2

Just out of interest when did your PPI complaint get submitted to Santander?

Moneyineptitude

Moneyineptitude said:

Trousers321 said:

So according to them. You are both wrong.

We both apologise for our gross error. 

However, please post again when you actually  receive a refund..

SonOf

Trousers321 said:

Well I just spoke to Santander and they said I will receive the PPI refund and the bank will take nothing because the debt has been written off. So there is no debt.

So according to them. You are both wrong.

We are not wrong.
The rules do allow the lenders to set off the redress against unpaid debts involving write offs.  Indeed, we have seen people post on this site saying that has happened.  Including those from Santander.     

So, the rules allow it and it has happened to others.     There are people that have received the full amount and not had set off but there is no way to know in advance what will happen to yours.   And I wouldn't rely on the Santander telephone line staff to give you the absolutely correct info.  You may get lucky but dont bank on it.

Trousers321

Ok. Thank you.