PPI on barred statue debt

[Bella 2018]

If I claim PPI for old barred statued debt can it reset the 6 year clock? I don’t mind the money going to pay off the debt but I don’t think the amount will be enough to pay off the full debt so don’t want to be in the position of acknowledging the debt and restarting the 6 years. Thanks

[jaguarsuk]

No, reclaiming a mis-sold financial product is separate to anything relating the debt being owed. The limitation still applies and you should receive the PPI refund, it won't go to the debt.

[Diana M]

If I claim PPI for old barred statued debt can it reset the 6 year clock? I don’t mind the money going to pay off the debt but I don’t think the amount will be enough to pay off the full debt so don’t want to be in the position of acknowledging the debt and restarting the 6 years.

How certain are you that this debt is Statute Barred? Are you relying on the last payment you made, or the Default Notice or the Termination of the account etc etc?

What was the account such as a credit card, loan, bank overdraft? This can impact on the SB date.

Is the debt still with the original creditor or has it been assigned to a debt purchaser? This may make a difference as to how you manage this situation.

Di

[Bella 2018]

It is no longer on my credit file so my assumption is over 6 years. It was a loan and a CC. I’m almost certain it is over 6 years. Is there a way to find out without contacting them? Thank you

[Bethiboo40]

I'm wondering the same Bella

[Diana M]

It is no longer on my credit file so my assumption is over 6 years. It was a loan and a CC. I’m almost certain it is over 6 years.

The CRA file entry vanishes from sight six years to the day from when the Default was registered regardless of whether payments are made afterwards. It is not evidence for a debt becoming Statute Barred.

You say there were two accounts (a loan and a credit card) so have both of these debts been assigned to a debt purchaser or are they still owned by the original creditor because that will make a difference to any potential PPI reclaim.

You need to establish whether the original creditor has the ‘’right of set off’’ if they still own the debts which would make the PPI reclaim pointless.

If the debts have been sold on then you could send a Subject Access Request to the original creditor to establish the PPI situation but I wouldn’t do that unless you’re 100% certain both those debts are really Statute Barred in case they have the option to recall the debt from the debt purchaser.

Di

[Diana M]

I'm wondering the same Bella

Debt Camel explains the potential risks here > https://debtcamel.co.uk/risk-reclaiming-old-ppi/


If the debt has been assigned to a debt purchaser things may be different but there could still be a risk of clawback in some cases.

Di

[Bethiboo40]

My debt was passed (or sold I'm not sure) to Moorcroft back in December 2008 and the last I heard from them was in Feb 2009. I received letters from Fredrickson & Co (if my memory serves me correctly) and from Bryan Carter (same again from memory) and the last I heard was a 50% offer.
At the time I had lots of debtors and simply couldn't keep up with what was going on and stuck my head in the sand and stopped opening the letters, I just kept putting them in a carrier bag meaning to shred them (at some point) I wasn't working at the time and suffering from depression and anxiety.
Fast forward to 2014 I decided I was going to try and pull myself together, get a job and get on with my life. I got a full time job, started making new friends and slowly but surely piecing my life back together but there had always been a gnawing panic still in the pit of my stomach I couldn't bring myself to face. October last year I had to quit my job due to family and relationship problems and so the old grey mist and fog descended clouding my mind. I eventually went to the doctors in January and started anti-depressants again and I'm glad to say they're working a treat. I'm determined not to get as low as I was last time and decided to do something to make me feel better.
I opened all my post from the carrier bags that I'd been hoarding in the top of my wardrobe (all 11 of them)
I felt sick, shaky and full of panic and it took almost 2 weeks to organise - but I did it.
I have had no correspondence regarding any of my debts at all since 2015. I have since checked my credit file and there is nothing on there at all.
Going through old Littlewoods statements I found I was paying for Extra Care Advantage, I do not recall ever being "sold" the cover and have worked out I had been charged £3817 over the years for it. My outstanding balance was £3265 with them. What do I do now?
I understand it might "wake" the debt but the refund of premiums would still wipe the debt and leave a little something left over. Is it worth the hassle?