PPI Claims in a Trust Deed – all your questions answered…
When you sign a Trust Deed, you agree to use your assets to repay your debts.
Any payouts you get from mis-sold Payment Protection Insurance (PPI) claims are classed as an asset, so you will have to pay these into your Trust Deed. This applies regardless of whether you get the payout(s) before or during your Trust Deed.
Why do I have to pay this money to my creditors?
Think of it this way – your creditors are agreeing to write off a significant proportion of your debts. It wouldn’t be fair to expect them to do this if you were allowed to keep a lump sum of money you receive as compensation for mis-sold PPI.
You could even complete your Trust Deed early!
For some of our clients, a PPI compensation payout has enabled them to complete their Trust Deed early, and get on with living their life. For this to happen, your payout would have to be enough to cover not only your outstanding debts, but also any Trust Deed fees and statutory interest. In the event of a successful PPI reclaim, your Trustee will be able to work this all out for you.
How will PayPlan Scotland deal with my PPI reclaim?
At the time when your Trust Deed was protected, your Trustee will already have appointed Credo Claims Limited to work on their behalf.
What is the process with Credo Claims Limited?
Credo Claims Limited will send you some initial paperwork to complete and return to them as soon as possible, so they can start investigating any potential PPI claims which could be made.
Once you’ve completed and returned this initial paperwork, Credo Claims Limited will then do all the rest of the hard work for you.
What about any fees and charges?
Credo Claims Limited do charge a fee for this service, but this will be paid out of any successful PPI claims, before the remainder is paid into your Trust Deed – so you won’t have to pay a penny of your own money in fees and charges for this service.
And if your PPI claim is unsuccessful, no fee is charged.
What will happen if I don’t send the paperwork back to Credo Claims Limited?
If you don’t co-operate with Credo Claims Limited, this will prevent your Trustee from carrying out his responsibilities under your Trust Deed arrangement.
This will lead to delays in completing your arrangement, and could mean you have to adhere to your Trust Deed obligations for longer than originally planned.
What happens if I can’t find the initial paperwork from Credo Claims Limited?
If you have lost the initial paperwork from Credo Claims Limited – or you didn’t receive it – simply call them FREE on 0800 197 0509 to ask them to send it to you again.
What if I want to do my own PPI claim?
You can choose to make your own PPI claim instead, but you will need to do the following:
- Provide your Trustee with valid proof of the PPI claim(s) you have made, and the outcome(s)
- Pay any refund(s) you receive into your Trust Deed, normally via bank transfer