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Archive for tag: PPI and Debt

PPI and Debt

Many people are in arrears and debt, but it remains a hidden problem. PPI compensation may not solve your debt crisis entirely but claiming your money back could significantly ease your financial burdens. This is what you need to know.

Debt

Many people are struggling with debt. The boom on the late 1990s and early 2000s was great in so many ways but the banks did not budget wisely. When the banks hit trouble in 2008, it meant trouble for the rest of us and not just here in the UK.

Slowly, the economy is getting better but there are still stops and starts, as well as austerity measures that are still hurting.

But, for many people, their personal finances will take longer to improve. They are still struggling with debt and claiming back PPI compensation is something theythinkthey are entitled to do but are unsure. Will claiming PPI compensation open a can of worms linked to their debts?

You can still claim PPI compensation - even with debts!

Many people think that the door to claiming PPI compensation is firmly closed because they have debts which feel or seem insurmountable.

But this is not the case. If you have been mis-sold PPI and have debts, you are still able to claim compensation.

What happens to the money?

If you do have a successful claim, what you may find happens are two things:

  1. The compensation amount is deducted from your outstanding arrearswith the bank or lender. On one hand, you may not be in receipt of a huge lump sum, but the likelihood is your debt could either be wiped out or significantly reduced. This could also have a positive impact on your credit rating, placing you in a better place to secure loans at an improved interest rate (always seek professional, independent financial advice before committing to any products!)
  2. If you have an IVA, your debt management company will receive the money to spread across outstanding creditors. Depending on the size of the compensation awarded, you could finish your IVA arrangement early. Talk to your debt advisors before lodging a PPI compensation claim as the circumstances can be complex and vary from one person to another.

Do you have debt and want to make a PPI claim?

Payment Protection Scotland may be able to help if you have a genuine claim for PPI compensation. Some claims can be more complex that others but we charge the same flat fee to all customers.

Why not see if you have an eligible claim and how you can claim back this cash with our help? All you need to do call us and we can get the compensation ball rolling…

Can You Claim PPI Compensation If You Are in Debt?

PPI has been in the headlines more or less continually since the start of the 2001 when the first batches of PPI compensation were made.

First was the announcement that it had been mis-sold to thousands of customers across the country, will billions of pounds in compensation possible owed. From here on in, there were numerous headlines of people receiving pay outs but also banks being fined for delaying payments, not dealing with claims in a timely manner and not calculating the right level of compensation.

The PPI stories in the media are like boomerangs - just when you think there are no more headlines, more appear and about another problem, like the amount of commission people were paid on the sales of PPI policies.

In amongst all this are people with real-life stories. Some people have claimed their money back, but there are a group of people worried that this will not be possible for them. And this is because they are in debt or arrears with their bank or lender.

We're here to tell you different…

We advise that you take time to check over all the details. If you spot PPI or one that sounds suspiciously like it, call our team.

Some people assume that because they are in arrears they are not entitled to make a claim but this is not the case.

PPI was Expensive

The cost of PPI could have been added in one lump sum on top of the amount you borrowed. Or every month, the payment you made was a combination of the loan repayment, PPI and then interest too.

A £5,000 may have been affordable but with a chunk of PPI added on top, the monthly interest the monthly payments you would make would significantly increase.

Some customers tell us that the monthly amount was outside of your budget and you may have struggled to make these repayments.

To make matters worse, you were probably paying for something you didn't need or want, but felt you had to buy.

You CAN Claim PPI Compensation

Any PPI compensation due to you must be paid to you and not added to your account. It is your money and you can do what you want with it. It may be that the bank or lender as part of the claim, wipe out the arrears but again, you need firm solid advice about this and you need to be confident that the bank is acting within consumer law and your rights.

You can claim your money back even if you are in debt or arrears to a bank or lender. Call us to find out more about our no win, no fee service and how we can help you.

 

PPI and Personal Debt – is it Worth Claiming?

Many people who have debts or accounts in arrears with various banks etc., do worry about making a claim for PPI compensation. But, as you will see, it is very much in your interest to make a claim for mis-sold payment protection insurance because you are no less worthy to claim your money back…

Is being in debt or arrears an issue when it comes to claiming compensation?

Everybody's situation is different and thus, rather than make a blanket statement and saying that it applies to everyone, it would be a prudent move to sound a warning bell as this point - everybody's situation when it comes to debt and arrears is different and thus, how and when PPI compensation is applied will vary from case to case.

Is your account in arrears? PPI premiums could have been responsible…

The first thing customers with debt and arrears need to bear in mind is that PPI was an expensive policy; in fact, shopping around for a similar product on the open insurance market would have yielded far better results, and far better policies too.

However, the application of PPI to your account meant two things: it made it more expensive and it made affording the loan or whichever product you had far more difficult.

Credit limits and PPI

For some customers, they found that when they account was pushed over the credit limit or, they missed a payment due to affordability issues, that the PPI premium was responsible for pushing them over this credit limit.

Why did you get in to financial difficulties?

There is, however, another question that needs to be asked, especially of those people who faced the fees and costs in addition to premiums and monthly payments on loans about why their account was in arrears.

If you had affordability issues because your income dipped, stopped or dropped, why were you unable to claim on your PPI policy? After all, this is why the policy is said to have existed in the first place.

With a successful claim rate of only 15%, it is in doubt whether your claim would have been successful or not.

Will you get any of the compensation money?

Many people assume that because their account is in arrears, or they have significant debt - possibly insolvency agreements or have been made bankrupt - that if they did make a claim for PPI compensation and if it was successful, that the money would not be theirs.

There are various scenarios that could happen…

  • Windfall- in the case of an insolvency agreement, any PPI compensation would be seen as a windfall and would be used to pay off your creditors; any surplus would then be yours
  • Bring your account up to date - if your account was in arrears, then the compensation could be applied to bring it up to date; any surplus would be yours
  • If the debt or arrears were not linked to that particular bank or lender with whom you were in debt, and that you were not in an insolvency agreement, you could technically spend the money as you wish.

Whether you are in debt or arrears - or not! - your paid for an insurance policy that you did not want and, in many cases, did not need. Claim your money back!

PPI and Your Debts

Here at Payment Protection Scotland, we help a wide variety of people claim back the payment protection insurance (PPI) owed to them. However, according to various respected consumer groups, there are still many thousands of people who have not claimed back the PPI premiums owed to them.

This can be for a variety of reasons but here at Payment Protection Scotland, we find that many people who are in debt are reluctant to make a claim. Again, there is a variety of factors why this is;

  1. Some people are frightened that making a claim will make their financial situation worse

If you are in debt, you may find yourself receiving call and call, or a multitude of text messages every day; likewise, people also receive a lot of official looking letters which tell them of the serious penalties they could face serious penalties if payments are received etc.

  1. People are not confident in dealing with banks, lenders and other financial institutions as this is not a harmonious relationship in which they feel the bank etc. has the 'upper hand'.
  2. Many people with debt problems find it difficult to trust the bank or lender
  3. The vast majority of customers also find the paperwork associated with writing to banks, asking for PPI compensation daunting
  4. We also find that many customers are embarrassed regarding their debts, unsure as to how they got into this position in the first place, as well as being unsure how to get out of the debt spiral.

How can Payment Protection Scotland Help?

Firstly, we need to make it clear that we are not offering a debt solution to your problem but, what we do understand is that the additional premiums you were paying for PPI on your credit cards etc. added a significant chunk of debt each and every month the premium was applied.

For many customers in debt, we find that this added a considerable sum to their already existing debt; without PPI premiums, their payments may have been more manageable.

The fact is, no matter whether you in debt to your lender, or even behind with payments, if you were sold PPI, the likelihood is that it was mis-sold to you, just like it was to thousands of customers across Scotland and the UK.

Here's how making a claim will work with your debts:

  1. As with all other claimants, there is no distinction between you or any other customer - you complete the same simple forms giving us permission to act on your behalf
  2. Once we have verified you have PPI on your account(s), we create a letter of complaint, asking for all PPI premiums to be returned
  3. If your bank etc. make an offer of compensation, we will check it thoroughly on your behalf that this is the correct amount of PPI compensation
  4. Depending on your situation, the PPI compensation amount may be deducted from the amount owing to the bank or lender; again, we can help with this.
  5. You may also be in for a pleasant surprise! Some customers found they were owed money, even after their debt was cleared, enjoying a small windfall of fortune for a change
  6. Or, if you do receive a large compensation payout, you could choose to take advice from a debt advice organisation to help you with the best way forward.

If you are debt and think you are owed PPI compensation, call Payment Protection Scotland now!