Can I reclaim PPI whilst in a Debt Management Plan?

Written by Payplan Ryan on 12 September 2012

A question that regularly crops up from our clients is “can I reclaim mis-sold PPI?” The answer is quite simply, yes. Being in a DMP does not make the reclaiming process any more complicated, as opposed to those that are not in plans or have cleared the balance on the account in question.


In April 2011 UK banks lost a judicial review, which ruled in favour of the consumers and allowed people to claim for mis-sold Payment Protection Insurance. This, at the time, was predicted to cost the banks more than £4 billion.

Was I mis-sold?

The mis-selling of PPI may be defined as one, or more, but not limited to the following:

  • You did not ask for the policy
  • You did not want the policy
  • You did not need the policy
  • You were self-employed, retired or unemployed
  • You were told the policy was compulsory
  • You have a pre-existing medical condition

Whether you reclaim PPI yourself or through a claims management company you need to be aware that if you make a successful claim then the funds may be used to pay off what you owe the Lender.

With this being said, the creditors do work on a case by case basis and may send you the full payment.

If you believe that you were mis-sold PPI and would like to look into reclaiming, you can either do it by yourself or through a claims management company. To find out more about this then please speak to your case officer if you are already a Payplan client, or log into your Payplan Plus account.

Filed under Living in Debt

This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.

17 thoughts on “Can I reclaim PPI whilst in a Debt Management Plan?”

  • Gemma

    October 10, 2012 at 4:30 pm

    Being on a DMP doesn’t affect your ability to reclaim PPI that was mis-sold to you. I believe the information that you received in the past was incorrect and you should look into this.

    Reply Report comment

  • margaret townsley

    November 11, 2014 at 12:36 pm

    How do I go about claiming ppi whilst on debt management plan

    Reply Report comment

    • Rich Wells

      November 18, 2014 at 8:38 am

      We no longer offer the service of claiming back PPI through our Associated company Stake your Claim. We do have information available on the Payplan website in relation to claiming back PPI which may be of use. Alternatively, you are able to seek advice through Citizen’s Advice Bureau in relation to PPI.

      Reply Report comment

  • Laurence stead

    October 20, 2015 at 2:26 pm

    Ive been out of debt managements since 2009 can I
    Claim back the PPI that I paid for the 4 years I
    Was in the payplan debt management

    Reply Report comment

    • Jane Clack

      October 21, 2015 at 10:16 am

      Who were you paying PPI to during a debt management plan? If it were for debts in the debt management plan then of course you can try and reclaim it but if you were paying a subscription plan to protect the payments into the debt management plan if you lost your job or were unwell then this is unlikely.

      Reply Report comment

    • Amanda Bossio

      January 17, 2018 at 8:37 am

      Hi Lauren I had sent management plans yeah ago and all load off.. Can I claim back ppi and not owe any thing to anyone as I’ve paid all the d plans back.. it’s over 10 years ago they were paid xx

      Reply Report comment

      • Jane Clack

        January 22, 2018 at 12:08 pm

        I do not know who Lauren is – the blog was posted a long time ago. You can reclaim mis-sold PPI if you are in a debt management plan anyway but as everything is paid back you can certainly do so and keep the money yourself. It is only if you were in an IVA or bankruptcy and it was owed that it would go elsewhere.

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  • William Binns

    September 9, 2016 at 3:53 pm

    I had a barclays account still paying through debt management am I entitled to ppi I had own business finished in 1998

    Reply Report comment

    • Jane Clack

      September 13, 2016 at 12:10 pm

      You may well be entitled to this – you need to write and find out. It does take time though. You could then use this to reduce your DMP if you wished – looking at full & final settlements perhaps – as they should give you this money and not offset it against your debt.

      Reply Report comment

  • Beverley Williams

    November 4, 2017 at 4:29 pm

    I completed an iva a couple of years ago my husband claimed back ppi on an account included in iva two questions can they keep the money theyve awarded us to ofset the unpaid loan even though iva completed.,and are claims for you still able to bill us for 30 percent even ifbank takes back the money

    Reply Report comment

    • Jane Clack

      November 7, 2017 at 1:02 pm

      Whether it’s due to IVA depends on what the proposals says – if a lender offsets and client is unhappy about that, they may complain to Financial Ombudsman SERVICE. It’s up to client to check terms of agreement with Claims Management Company – they may well be able to bill in case of offset as they have done the job they were employed to do you see.

      However, was your husband in an IVA too as you say you were in an IVA but your husband claimed back PPI. It is not very clear.

      Reply Report comment

  • Andy

    November 17, 2017 at 9:36 pm

    I’ve got very bad credit an had numerous credit cards and loans which I’ve defaulted on but could I still claim ppi

    Reply Report comment

    • Jane Clack

      November 22, 2017 at 10:11 am

      You can and if you do it yourself – they should not set it off against your balances owing but they could

      Reply Report comment

  • Dan

    April 10, 2019 at 2:08 pm

    Hello, can I claim PPI on defaulted loans and cards?
    Thank You

    Reply Report comment

    • Jane Clack

      May 6, 2019 at 6:54 pm

      Yes, you can. However, the money may be deducted from the money you owe them although you should be given the choice.

      Reply Report comment

  • Jo

    May 20, 2019 at 7:55 pm

    Hello, I have recently applied for ppi with a ppi firm.and has come back with confirmed ppi on 5 accounts. I was about to proceed further but they then asked me if I had ever had a debt relief order which I had 5 years ago. I told them this and they then said they couldn’t continue with the case. They then referred me to their partner firm and said they would help me and they are free but the firm that referred say they charge a referral fee. I sent the signed email to then but then found out they don’t take on cases with people who have a debt management plan which currently I do. None ofthisstuff was previously askedwhen I startedthis. My question iswhat happens with my rights to find out what companies have confirmed ppi so I can do this myself. And do I have to pay fees. to these people as they dropped the case and I wasn’t aware of these questions until today after 2 months of applying. Thanks.

    Reply Report comment

    • Jane Clack

      May 20, 2019 at 10:20 pm

      You can do it yourself but the money does not belong to you if it was an asset at the time you did the debt relief order ie it was from the debts you had included in it. It is better that they are honest now as otherwise you could end up with the debt relief order being revoked if the sum was big enough and you end up with a bill from the company who did it as none do PPI reclaim for free. If you have built up debt since and are in a debt management plan it is slightly different but the creditor may decide to offset the amount from what you owe them – they may not and you can choose whether to use it to repay your debts but you will have another bill to pay and they may well deduct it before they send you the money.

      Reply Report comment

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