Mis-sold PPI

[modeste]

I have a couple of credit cards that defaulted and have now been taken up by collection agencies.

I am thinking of reclaiming any mis-sold PPI on these, but am led to understand the credit card companies will probably withold any payment that may be due to me, against the original debt.

Given that these debts were sold on, can this mis-sold PPI be used to relieve the defaulted amount with the collection agencies?

[boxtops]

I don't know the legal position but it seems reasonable that you would want to put any money reclaimed into settling the outstanding debt. I'm not sure that the debt companies can put any hold on the monies though, since the PPI is usually organised by a different arm of the CC companies.
Either way it's to your advantage - either you get the money back, or you can pay off some of your outstanding debt.

[Hopkirk]

It would be a bit rich to claim, if you defaulted on what you owed them.

[modeste]

I don't really care about the moral side of it.

If they can afford to sell a debt for pennies in the pound, while happily taking PPI from me then I shall pursue it.

[hc4361]

In what way was the PPI mis-sold?

[factor-fiction]

"If they can afford to sell a debt for pennies in the pound, while happily taking PPI from me then I shall pursue it."

Does this mean you carried on paying PPI after you stopped repaying the loan?

[factorfiction]

modeste is right- morals is not regarded as an issue regarding these PPI claims. I'm not sure mis-selling is the right term either