Can I claim for PPI mis-selling after my Trust Deed has finished?
We consider whether you can make a claim for PPI mis-selling after your Trust Deed has been completed and if successful what happens to any compensation cash paid.
If you are in a Trust Deed and you receive a PPI compensation payment this money will almost certainly have to be paid into the Arrangement.
Once you are discharged from your Trust Deed you are still eligible to claim for PPI mis-selling and if you do, any compensation that you receive should be yours to keep. However there are a number of things you will still need to consider.
Are you allowed to claim for PPI after your Trust Deed?
If your Trust Deed has finished, this means that any outstanding debt you owed to the banks has been written off. However this does not change the fact that you may have originally been mis-sold PPI.
You are eligible to make a claim because n the same way as if you had paid off your debt in full and it no longer existed, the mis-selling of PPI is a separate issue to whether or not you have paid your debt back in full. Your claim must still be considered and compensation paid if appropriate.
Clearly the advantage to you personally of making your PPI claim after your Trust Deed has finished is that any payouts which you receive are yours to keep.
BMD Tip: You must just make sure that both you and your Trustee are discharged. It is not enough to have simply finished paying your monthly payments. If your Trustee has not been officially discharged any windfalls received must still be paid in to them.
Do you want help claiming for PPI after your Trust Deed has finished? Give us a call on 0800 077 6180 or complete the form below to speak to one of our experts
Can I delay my PPI claims until after my Trust Deed?
Because you can keep any compensation money paid to you after your Trust Deed has finished it would normally be sensible to delay any PPI claim until then.
Given the size and extent of the PPI scandal, it seems unlikely that there will be any time limit set within which claims must be presented to the banks. Or at least any such deadline is unlikely to be set for a good while to come. As such, there seems little risk that by waiting until after your Trust Deed has finished you will miss the opportunity to make a PPI claim.
You might be prevented from delaying your claim if your Trustee asks you make the claim during your Trust Deed. If this happens you cannot refuse the request.
You are obliged to cooperate with any reasonable requests your Trustee makes to ensure you maximise the payments you make to your creditors. Any refusal to do this could ultimately result in the failure of your Trust Deed.
BMD Tip: More and more Trustees are asking people in Trust Deeds to make PPI claims before they are discharged as any compensation can then be used to increase the return to all the creditors involved in the Trust Deed.
Will the banks refuse to pay out PPI compensation if I have been in a Trust Deed?
It is possible that if you have been in a Trust Deed and then make a PPI claim, your creditors will try to argue that they should not have to pay you any compensation you are awarded.
Instead, they may try to say that the money should be used by them to off-set the outstanding debt that they were not paid in full due to you having been in a Trust Deed. Alternatively they may try to argue that the money should still be treated as part of your Trust Deed and handed over to your old Trustee.
If this happens and you are trying to make a claim yourself you will probably struggle to take your claim any further. For this reason it is recommended that you use a specialist service to help you make your claims.
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