If you have finished your Trust Deed you may now be wondering whether or not you are eligible to claim for PPI mis-selling.
The fact that you have been discharged from your Trust Deed and were not in a position to repay all of your debt does not prevent you from making claims.
You may still have been mis-sold PPI and the extra payments you made to pay for it could have even contributed to your financial difficulties. For this reason it is certainly possible to make a claim for mis-selling compensation now. However there are a number of things you need to think about.
Are both you and your Trustee discharged?
Although you may have paid your last Trust Deed payment, you are not fully free from the conditions of your Trust Deed until you have been formally discharged by your Trustee. Your Trustee will send you a letter confirming your discharge normally about 4-6 weeks after your last Trust Deed payment has been made.
In addition to your own discharge you must also make sure that your Trustee is also discharged from your Trust Deed. The Scottish Register of Insolvencies will show the date of your Trustee’s discharge which is available through the Accountant in Bankruptcy website (see the “Related Links” box above).
This is extremely important because if you make a claim for PPI mis-selling before your Trustee is discharged any PPI compensation you are paid could still be treated as a windfall and would still have to be paid into your Trust Deed.
For this you should not to start the PPI claims process before you are sure that your Trustee has been discharged from your Trust Deed as well as yourself.
Has your Trustee already asked you to make PPI claims?
If your Trustee requests that you make PPI claims before you are discharged from your Trust Deed, you must comply with this request.
Where this happens any compensation that is payable will be paid directly into your Trust Deed as a windfall and you will not benefit from the claims personally.
You cannot refuse to make PPI claims if your Trustee asks you to do so. If you do refuse then this could be seen as not co-operating with your Trustee and there is a risk that your whole Trust Deed could fail even after you have made all of your agreed payments.
How long ago did your Trust Deed finish?
It does not matter if your Trust Deed finished even a number of years ago. There is no time limit beyond which you are no longer allowed to make a PPI claim.
The bottom line is if you were mis-sold PPI even many years ago you are still eligible to make a claim for compensation.
The key to making your PPI claims is that you must be able to remember the list of creditors you owed money to and the account numbers. Some people keep their old creditor paperwork which will show this information. However if you are not one of these you can normally find this information on your old Trust Deed paperwork.
If you do not have your original Trust Deed paperwork and it is less than 6 years since your Trust Deed finished you can contact your old Trustee and ask them to send you a copy. You could also get a copy of your credit file and all of your old debts should still be listed there too.
If the original creditor who sold you the PPI subsequently sold your debt to another collector you will need to make your claim against the original bank who you had your loan or credit card with and who sold you the PPI.
Could a bank still withhold your compensation payout?
One of the potential issues with claiming for PPI miss-selling after you have been in a Trust Deed is the possibility that you are eligible for compensation but the bank argues that they are allowed to withheld the payment from you.
If the bank you claim against was involved in your Trust Deed it is possible that they will try to argue that they are allowed to keep any compensation that you are due to offset against their debt that was not repaid in full during your Trust Deed.
Another argument against sending you your compensation directly that the banks may try to use is that the compensation should be treated as an unrealised asset of your Trust Deed. As such they will say it should be paid to your old Trustee for distribution to the creditors who were originally part of your Trust Deed.
Arguing with the bank against these actions is possible however it is not easy unless you really understand the legal arguments. As such this is where the help of a specialist PPI claims management company is really useful.
Can you get help to make your PPI claims?
After both you and your Trustee have been discharged from your Trust Deed you can claim for PPI mis-selling if you have not already done so.
You always have the option of making the claims yourself if you wish. However because you were in an Trust Deed the banks you claim against may try to withhold the compensation you are due.
Unless you are confident that you will be able to successfully argue your case with the banks, it will be beneficial to get the help of a specialist PPI claims company who understands the fact that you have been in an Trust Deed.
They will be able to present the correct legal arguments to the banks in the event that any compensation due to you is withheld. Sometimes this may even require the intervention of a solicitor’s letter which such specialists can provide.
Clearly you will need to surrender a percentage of your compensation to pay for this service. This could be around 30% of any compensation you are paid. However reputable claims specialists will not charge you anything unless you are actually in receipt of your compensation funds.
As such you really have nothing to lose and will be far more likely to receive PPI compensation after you have finished your Trust Deed by using this type of service.
Beat My Debt is not a Claims Management Company. We are unable to help you with your PPI claims. If you want help you need to use a claims company regulated by the Ministry of Justice.