Can I Claim PPI if I’m on a Debt Management Plan?
For those people on a debt management plan who aren’t sure if they can claim PPI, we’re here to tell you that you can — and here’s how to do it.
Claiming against mis-sold payment protection insurance has never been so important. The Financial Conduct Authority (FCA) has set a deadline for all PPI claims. They must be submitted to the bank or lender before 29th August 2019. Although this date seems far off, many consumers are yet to make a claim. The FCA is encouraging people to make a claim as soon as possible rather than put it off. Having a deadline in place allows the banks to recover from the vast amount of money they have repaid for mis-selling the insurance.
Collectively, the banks have paid over £30 billion to consumers in seven years. This is on top of fines to the FCA and paying for the deadline campaign. PPI was sold alongside numerous financial products. Many people were unaware that they ever bought PPI due to it being added automatically to many financial products. Even those who are now on a debt management plan may have purchased PPI and can make a claim.
If you’re in a debt management plan (DMP) or still have some outstanding debts to pay, it’s worth taking the time to find out if you were mis-sold the insurance.
Claiming PPI With Debt
Even if you still have outstanding debt such as a loan or credit card, you can make a PPI claim. But, it’s important to understand that the bank may take your refund to pay off any money you owe them. If you’re making a claim against a different lender, you should still receive the money.
If you decide to use a reputable claims management company to handle your claim, be sure to let them know about any debts and find out how much you will pay for a successful claim.
Claiming PPI on a Debt Management Plan
Can you claim PPI if you’re on a debt management plan? The short answer is yes, you can. The fact that you’re on a debt management plan will not hinder your chances of making a successful claim. However, there are some important things to note when making your claim while in a DMP:
- If your PPI claim is successful and the bank is one of the creditors in your debt management plan, then it’s likely that the money will go straight to them.
- This is perfectly legal and known as ‘set off.’
- Although it may seem inconvenient, having the bank take the PPI refund is beneficial, as it means your DMP will be paid off sooner.
- If your PPI refund is not from a bank or lender who you are paying in your DMP, you should receive the money directly. You can use it to pay off your debts if you wish.
You may find that PPI claims companies will not handle cases when you are in a DMP. This means you will have to manage the claim and contact the bank yourself.
But, you should start your claim as soon as possible. The banks are likely to be busier handling more claims due to the deadline, meaning it may take longer to be resolved. With just over a year left to make a claim, it’s not worth missing out on the opportunity to pay off some of your debt.
Logican’s claims management software is helping companies to retrieve money for thousands of consumers. If you want a company to manage your claim, find the best claims company that offers a no win no fee service.