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Answers to all your PPI claims questions if you are in or have been in a DMP or IVA or Bankrupty
By DizzyG
I have just been awarded ppi refund, the girl never mentioned anything abut paying off any arrears but I am in arrears with my loan, will my refund be used to pay this off?
Hi there DizzyG and welcome to the forum

May I ask who the loan is with? In general it is unlikely you would receive the PPI compensation if you are in arrears with the loan company, they can use something called the offset rule to recoup their money from the compensation.

However, if you have not heard anything about this you may yet receive the money but this will be a matter of sitting and waiting. If you do receive the money it may be better to use it to repay your debts anyway.

Do you have other unsecured debts?
Hi DizzyG

As Melissa has said if you are in arrears with a debt that you owe to the same bank then it is very likely that they will keep any PPI they are awarding you to repay the debt. The issue is that the PPI department and the collections department are two different functions. Normally the PPI department will confirm to you that you will be getting a PPI refund and they may even tell you that the cheque is in the post. However before they actually post it they will check with the collections department re the status of any other accounts you have with them. The cheque will be intercepted at that point.

There is no guarantee that you will not get your money but do not get your hopes up too high.....