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  • FIRST POST
    • alison8
    • By alison8 13th Oct 16, 9:08 PM
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    alison8
    Banks to claw back PPI payouts?
    • #1
    • 13th Oct 16, 9:08 PM
    Banks to claw back PPI payouts? 13th Oct 16 at 9:08 PM
    Hi, my first post. Read online that banks are trying to claw back money paid out in PPI compensation. I have successfully claimed a PPI refund myself using the help of MSE. Worried now that bank may try to take back some or all of the compensation some of which I have spent. Surely this can not be legal for them to just demand the money back. Thankfully I have not heard anything from the bank about this but it is worrying. Anybody out there got any advice.
Page 1
    • Moneyineptitude
    • By Moneyineptitude 13th Oct 16, 9:31 PM
    • 17,243 Posts
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    Moneyineptitude
    • #2
    • 13th Oct 16, 9:31 PM
    • #2
    • 13th Oct 16, 9:31 PM
    If you agreed a full and final settlement of your complaint, then that is legally binding.

    Where exactly have you read this nonsense about Bank's trying to "claw" the money back?
    • alison8
    • By alison8 13th Oct 16, 10:02 PM
    • 5 Posts
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    alison8
    • #3
    • 13th Oct 16, 10:02 PM
    • #3
    • 13th Oct 16, 10:02 PM
    Hi, thanks for your reply. I first heard about it on the TV show Rip off Britain saying it was being reported in the Daily Mail (which I don't read.) I then searched for it online and found it on the Daily Mail website This is Money. According to that some customers have received shock bills because the banks have discovered they have made PPI refund mistakes during routine reviews. It has happened to some people who have received payouts from more than 4 years ago. I did agree to a full and final settlement so I hope it is legally binding on the bank.
    • Moneyineptitude
    • By Moneyineptitude 13th Oct 16, 10:09 PM
    • 17,243 Posts
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    Moneyineptitude
    • #4
    • 13th Oct 16, 10:09 PM
    • #4
    • 13th Oct 16, 10:09 PM
    Sounds like typical Daily Mail hyperbole.

    If this were widespread then it would be widely reported. It's not.

    Of course, if an obvious overpayment had been made by a Bank, then they could certainly REQUEST the recipient pay it back. It would have to be a very obvious mistake (for example, a double payout) though.
    • alison8
    • By alison8 13th Oct 16, 10:28 PM
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    alison8
    • #5
    • 13th Oct 16, 10:28 PM
    • #5
    • 13th Oct 16, 10:28 PM
    Thanks, I agree with you regarding the Daily Mail which is why I don't read it. I just checked it out online because of what I heard on Rip off Britain. I feel sorry for the people it has happened to. One of the banks that had demanded money back was mine (Halifax) so it was a little worrying. It doesn't sound legal to me though and if it does happen to me I will just appeal to the financial ombudsman. Although according to the online article someone who had spent most of the money on a holiday and home improvements did appeal to the financial ombudsman and they were ordered to pay back whatever was left over which sounds absolutely mad to me.
    • Moneyineptitude
    • By Moneyineptitude 13th Oct 16, 10:34 PM
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    Moneyineptitude
    • #6
    • 13th Oct 16, 10:34 PM
    • #6
    • 13th Oct 16, 10:34 PM
    according to the online article someone who had spent most of the money on a holiday and home improvements did appeal to the financial ombudsman and they were ordered to pay back whatever was left over which sounds absolutely mad to me.
    Originally posted by alison8
    Without all the details it's impossible to make a judgement on this, but it sounds as if the complainant must have known full well he has been overpaid if the Ombudsman ruled he had to pay it back.
    • Nasqueron
    • By Nasqueron 14th Oct 16, 9:05 AM
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    Nasqueron
    • #7
    • 14th Oct 16, 9:05 AM
    • #7
    • 14th Oct 16, 9:05 AM
    Thanks, I agree with you regarding the Daily Mail which is why I don't read it. I just checked it out online because of what I heard on Rip off Britain. I feel sorry for the people it has happened to. One of the banks that had demanded money back was mine (Halifax) so it was a little worrying. It doesn't sound legal to me though and if it does happen to me I will just appeal to the financial ombudsman. Although according to the online article someone who had spent most of the money on a holiday and home improvements did appeal to the financial ombudsman and they were ordered to pay back whatever was left over which sounds absolutely mad to me.
    Originally posted by alison8

    IF (big if) there was an obvious overpayment, like a double payment or much more than the settlement letter, anyone spending it should expect to have to pay it back and serves them right if they knowingly spent money that wasn't theirs
    • societys child
    • By societys child 14th Oct 16, 9:14 AM
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    societys child
    • #8
    • 14th Oct 16, 9:14 AM
    • #8
    • 14th Oct 16, 9:14 AM
    It doesn't sound legal to me though and if it does happen to me I will just appeal to the financial ombudsman. Although according to the online article someone who had spent most of the money on a holiday and home improvements did appeal to the financial ombudsman and they were ordered to pay back whatever was left over which sounds absolutely mad to me.
    Originally posted by alison8
    So you think it's wrong someone has to repay money which has been mistakenly paid out to them? (or they've knowingly claimed money to which they weren't entitled)

    It works both ways . . .
    Last edited by societys child; 14-10-2016 at 9:16 AM.

    • dunstonh
    • By dunstonh 14th Oct 16, 10:10 AM
    • 85,128 Posts
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    dunstonh
    • #9
    • 14th Oct 16, 10:10 AM
    • #9
    • 14th Oct 16, 10:10 AM
    Basically, the banks are going back over old payments to make sure people received the right amount. The reason they were told to do this was because a number had under paid the level of redress. However, in a small number of cases, it was found that some people had been paid too much.

    An error does not entitle you to keep the money.

    When someone receives money they are not entitled to, there is a set process involved. If the person had reasonable expectation that the figure was correct then they do not have to refund the money if it has been spent. However, if there is not reasonable expectation then they do have to refund the money whether it was spent or not.

    In the case of PPI redress, reasonable expectation would largely be down to the size of the refund vs the size of the loan taken out. If you borrowed £5000 then it would be unrealistic to think that a £10,000 redress payment on the PPI premium was reasonable expectation. Whereas if a refund was £1300 but the correct amount should have been £1100 then reasonable expectation would apply.

    I feel sorry for the people it has happened to.
    Don't be sorry for them. The people that can't show reasonable expectation would have figures that they knew couldnt possibly be correct. They were hoping to get away with it.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Mersey
    • By Mersey 14th Oct 16, 1:57 PM
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    Mersey
    It's rare, although has happened.


    Although in the article you refer to, the FOS actually sided with the claimants in most of the cases, eg in one a bank took back ie charged £1,552 to a person's credit card.


    They had to return this plus pay £300 compensation.


    www.thisismoney.co.uk/money/news/article-3833245/Banks-snatching-PPI-payouts-we-paid-25bn-years-mis-selling-say-mistakes.html
    Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.
    • alison8
    • By alison8 15th Oct 16, 12:47 PM
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    alison8
    No I don't think it is wrong that people have to pay back money that is wrongly paid to them. In the article I read it mentioned nothing about the payment being more than the person expected and it did not occur to me or seem that that was what had happened in the examples it used. if I had received more than was in the letter from the bank I would call them immediately to check it was correct.
    • alison8
    • By alison8 15th Oct 16, 1:35 PM
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    • 4 Thanks
    alison8
    Thank you to the person who said to be polite to original posters (OP) as some of the replies above were a little impolite. As for morality, it was very immoral of the banks to originally miss sell customers. They have been found in the wrong and have been made made to repay customers.
    Last edited by alison8; 15-10-2016 at 1:36 PM. Reason: Grammer
    • dunstonh
    • By dunstonh 15th Oct 16, 1:56 PM
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    dunstonh
    n the article I read it mentioned nothing about the payment being more than the person expected and it did not occur to me or seem that that was what had happened in the examples it used.
    You dont expect the media to present the facts do you?

    The FOS use the same method for overpayments that they use for any overpayment in any area. So, this is not new or unusual. It just makes a good headline when the paper spins it as it did. It would be nice if the journalists would explain why things happen so you learn why. However, that wouldnt make such a good sensationalist article.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • welshgasman
    • By welshgasman 15th Oct 16, 11:27 PM
    • 291 Posts
    • 83 Thanks
    welshgasman
    I know of *honest* people that have reported back to a bank that they have received a second or extra payments for the same PPI claim.

    I also know of *dishonest* people who have had that happen to them, but did not report it.

    The first, restores your faith in human nature, the second?, well it speaks for itself.
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