Reclaimed PPI - Can I use for full and final payment?

[d1ngle]

Hi,

My bank is sending me £1600approx on a PPI reclaim against a Credit Card. I was hoping to use this to offer full and final payment against the debt of £3300, which is on the same CC and that I am in a DMP with. How likely is this to be accepted?

I am also in more debt with others banks so would it be deemed treating other this creditor with preference and so not a good thing to do (or should I offer less of the £1600 toward this debt and so I can offer the other creditors a % too)?

I guess a more general question would be does anyone know the likely % of total debt that banks/CC's/loans take when offered full and final payments of accounts in DMP's?

Thank you for your help.

D

[labman]

Re: Reclaimed PPI - Can I use for full and final payment?

It is highly unlikely the bank will actually send you the money. 99.9% of the time they will use the ppi reclaim to offset the balance owing.

In terms of working out F&F's, there is a formula for doing so. I've attached this for you.

[d1ngle]

Re: Reclaimed PPI - Can I use for full and final payment?

It is highly unlikely the bank will actually send you the money. 99.9% of the time they will use the ppi reclaim to offset the balance owing.

In terms of working out F&F's, there is a formula for doing so. I've attached this for you.

Thanks Labman,

That's what I thought, but the woman phoned me and asked if I wanted to use it to pay the balance or if I wanted it to be sent to me so I opted for the latter. It looks like the account is active so I need to send them another letter reminding them I'm in a DMP with them.

Either way looking at your formula you have to offer equal to all and not pay off the debts you think will accept?

Thanks again
D

[d1ngle]

Re: Reclaimed PPI - Can I use for full and final payment?

Just as an update, they did send me the money!!

[FlamingParrot]

Re: Reclaimed PPI - Can I use for full and final payment?

Just as an update, they did send me the money!!

Well done! :whoo:

[TUTTSI]

Re: Reclaimed PPI - Can I use for full and final payment?

Excellent news :cheer2::cheer2::cheer2: are you going o share this with all your creditors?

[debtisbad]

Re: Reclaimed PPI - Can I use for full and final payment?

What I would be inclined to do is first of all receive the PPI, then start a negotiation with them about a full and final. Personally, I previously settled at 10%,although it took some persistence, as they will always reject first. It's like a dancing game. Keep offering over and over again, without making any interim payments. It may take some weeks or months. Give them a hard luck story, you know, massive debts, unemployment, business failure, mother died, family member has cancer, I feel suicidal over my debt and will end it all tomorrow, etc. Lay it on thick. Beat them down. And they will eventually agree a figure. Try offering 5% as a goodwill gesture first, despite your "hardship" and then when they refuse, reiterate your hardship. Make it sound like things are getting worse and you may not be able to pay them at all. Eventually agree a full and final. Keep the rest of the PPI refund and enjoy it! Please look over my threads elsewhere on this site and see how I wrote off my debts. I now live the enviable life of being totally debt free. You can have the same. Good luck. Please let me know if you have any questions.