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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a credit card on which I owe more than £ 4,500. It is

Customer Question

I have a credit card on which I owe more than £ 4,500. It is now with a collection agency to whom I pay £100 per month with interest frozen. I also have a Payment Protection Insurance (PPI) on the card. Now I am being made redundant and expect a reasonable redundancy settlement. My questions are: 1) Will my PPI pay the debt once I tell the bank I have been made redundant or will the bank demand that I give them money from my redundancy settlement? 2) If the PPI will pay the debt, how long can the PPI company keep on paying? 3) If the PPI company agrees to pay the debt will they pay only the £ 100 I am currently paying per month or will they pay the normal amount based on the original APR? I am near retirement age and there is virtually no chance of me getting another job.
Submitted: 11 months ago.
Category: Law
Expert:  Ash replied 11 months ago.

Hello my name is ***** ***** I will help you with this.

Are you still Paying the PPI element?

Customer: replied 11 months ago.
The PPI was not cancelled, so I assume the £100 is going towards its contribution.
Expert:  Ash replied 11 months ago.

Then yes you would be entitled to payment. The debt won't get wiped off. I suspect your PPI only pays for the minimum balance.

Therefore it should get paid, but will probably be the minimum balance.

Can I clarify anything for you about this today please?

Alex

Customer: replied 11 months ago.
if the PPI was discontinued without my knowledge?
Expert:  Ash replied 11 months ago.

If you were not making payments to cover the PPI then you would still be liable and have to pay the debt.

If you did not pay the PPI element in full they would be entitled to end it.

Can I clairfy anything else for you?

Alex