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What Can You Spend Your PPI Compensation On?

Of all the questions we are asked about claiming for mis-sold payment protection insurance (PPI), this is the one that gives us the most joy to answer.

Spend

In the main, you can spend your PPI compensation in a way that you see fit but, many people have all kinds of questions about the windfall that they receive, more so when the amount they claim back is substantial.

I am in debt. What should I do with my PPI windfall?

This is a good question, the answer to which should be explored with an independent financial advisor. Every person's situation is different and thus, this is only a summary of what you could do and is not meant as advice on your debt issue.

If you have an Individual Voluntary Agreement(IVA) or in a type of sequestration agreement, you may find that your PPI compensation will be seen as a windfall. In law, this means that it must be used to pay off creditors and agreements etc. Failing to do so could land you in trouble which is why we always strongly advise seeing a debt expert.

If your account is in arrears and there is no formal or legal arrangement as above, it helps your credit score to pay off these arrears, and bring any accounts back up to date. It also true to say that if you can afford to pay off the debt, this places you in a strong negotiation figure. Ask the bank or lender for a settlement figure, as this could be less than what you owe.

Can I spend it on anything?

Yes you can, but there has been some research about how people do spend their PPI windfall and the results are interesting:

  • The vast majority of people bought a brand new car. This in itself has proved a valuable boost to the care sales within the UK and thus, has had a positive knock-on effect on the economy.
  • The second largest spending category of PPI compensation was onhousehold goods such as freezers and so on, for the home. Again, this has proved a valuable boost to the economy.
  • Thirdly, people enjoyed a well-earned break, taking a holidayto foreign climes.
  • Many people chose to save their windfall, and some spent it on food, as well as buying clothes and shoes for the family.

Can Payment Protection Scotland help me claim money back?

We could if you have an eligible claim for compensation. Why not call now to find out more?

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