Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • LCDT
    • By LCDT 19th May 19, 10:04 PM
    • 1Posts
    • 0Thanks
    LCDT
    Can applying for PPI affect my historical partial debit payment with them?
    • #1
    • 19th May 19, 10:04 PM
    Can applying for PPI affect my historical partial debit payment with them? 19th May 19 at 10:04 PM
    I realised today after a talk that PPT is applicable to credit cards so now looking to apply. But then here is my question.

    8 years ago I had stage 4 cancer. I had credit cards and loans. I was so ill and i was not able to pay limited payment. Phoned my banks, they defired for 6 months but one bank Lloydstsb would not discuss any minimal payment even 1 unless I did not pay. Only then it would activate a no payment and put me in the black then they would talk to me though their debit recovery department. This got me in so much trouble financially when I was in no state to undersand or comprehend (massive morphine swigging every day and 37 other pills a day). One question i remember was "how bad is your cancer" and to my sister they asked "is she dying" one person asked.

    My family finaliy realised my financial problem and got together the money and contacted the banks and helped agree a one off payment to the banks on my outstanding debt.

    My question: -- I dont know if i had PPI on those banks. Now if I contact them to claim back the PPI would this then lead them to asking me to pay back the other percentage of money that I had not paid? Even though they accempted the partial payment?

    Please note I was in no state to be aware or of clear mind to read anything even now I have memory laps due to the treatments.

    thanks -- LCDT
Page 1
    • Moneyineptitude
    • By Moneyineptitude 19th May 19, 10:11 PM
    • 24,747 Posts
    • 14,284 Thanks
    Moneyineptitude
    • #2
    • 19th May 19, 10:11 PM
    • #2
    • 19th May 19, 10:11 PM
    I dont know if i had PPI on those banks. Now if I contact them to claim back the PPI would this then lead them to asking me to pay back the other percentage of money that I had not paid? Even though they accempted the partial payment?
    Originally posted by LCDT
    You can't have it both ways I'm afraid.

    The Bank accepted your partial payment , but technically you still owe this money even though you'll never be chased for it.

    As such, of course the Bank can (and will) offset any PPI redress (should it be awarded) against this unpaid debt.
    Might be wise to let sleeping dogs lie..
    • dunstonh
    • By dunstonh 19th May 19, 10:25 PM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    • #3
    • 19th May 19, 10:25 PM
    • #3
    • 19th May 19, 10:25 PM
    My question: -- I dont know if i had PPI on those banks. Now if I contact them to claim back the PPI would this then lead them to asking me to pay back the other percentage of money that I had not paid? Even though they accempted the partial payment?
    Yes. The banks are allowed to set off PPI redress against any unpaid debt. Including those with agreed partial settlements.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • -taff
    • By -taff 20th May 19, 8:13 AM
    • 10,508 Posts
    • 14,714 Thanks
    -taff
    • #4
    • 20th May 19, 8:13 AM
    • #4
    • 20th May 19, 8:13 AM
    If they accepted a partial payment/reduced settlement as a full and final payment, you won't start the clock again. If you successfully complain about PPI they will use it to offset against amounts owing that you didn't pay.
    • shearski
    • By shearski 23rd May 19, 5:55 AM
    • 4 Posts
    • 0 Thanks
    shearski
    • #5
    • 23rd May 19, 5:55 AM
    Similar situation
    • #5
    • 23rd May 19, 5:55 AM
    Hi

    My wife is in a similar situation with partially paid off debts. Her ex-husband left her with a lot of debt and after a number of years on a debt management plan her parents lent her money in 2007 to make settlement offers. These were accepted as full and final payment.

    I understand that if she is awarded any PPI reclaim that they can use it to cover the outstanding debt but I assume she would be awarded anything above and beyond this amount. Is this correct?

    Unfortunately in the last 12 years we have lost the paperwork. Some of the payout stories that are reported far out weigh the difference between her debt and the accepted settlement figure. As the process for checking and claiming has been simplified are there any risks to making claims in the off chance that the claims would pay off any outstanding debt and provided a payout?
    • -taff
    • By -taff 23rd May 19, 7:46 AM
    • 10,508 Posts
    • 14,714 Thanks
    -taff
    • #6
    • 23rd May 19, 7:46 AM
    • #6
    • 23rd May 19, 7:46 AM
    Yes
    No
    .......
    • shearski
    • By shearski 23rd May 19, 4:36 PM
    • 4 Posts
    • 0 Thanks
    shearski
    • #7
    • 23rd May 19, 4:36 PM
    • #7
    • 23rd May 19, 4:36 PM
    Thanks.

    So as i see it there are 4 possible outcomes.
    1) The check shows that my wife didnt have PPI
    2) She took out PPI but wasnt missold and so is due no payment.
    3) She was missold PPI but the redress goes towards the difference between original debt and settlement figure.
    4) As 3) but there is some remaining which is returned to my wife.

    It suggests that while there is only a chance that she will recieve a payout it is probably worth checking
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

146Posts Today

1,655Users online

Martin's Twitter