Ombudsman has ruled in my favour but.....

mikeb222

Ombudsman as ruled in my favour re: PPI with black horse.
Now I have a feeling that BH will simply deduct the amount from my existing loan, but I had to pay the PPI with cash.
There is nothing on the ombudsmans letter that says they will have to pay me back with cash.

If they do try to deduct it from my loan, have I got a case to have it as cash?

Sol00

Hmmmm I'm not sure tbh, I think they probably can do this. Are you in arrears?

AverageJoe_4

mikeb222 wrote: »

Ombudsman as ruled in my favour re: PPI with black horse.
Now I have a feeling that BH will simply deduct the amount from my existing loan, but I had to pay the PPI with cash.
There is nothing on the ombudsmans letter that says they will have to pay me back with cash.

If they do try to deduct it from my loan, have I got a case to have it as cash?

NO. The bank MUST repay you in cash/cheque re: PPI - but:

1 - they will try to OR actually tell you that it is their policy to reduce outstanding arrears/balances with it

2 - you must NOT accept it as this another cheating way of gettin around paying you. Unless you complain about it, they will go ahead and do it like that as you would have not challeneged it.

3 - you can CHOOSE to agree and have it reduce your balance but they cannot force it to be so. Only bank charges and CC charges can be refunded this way.


Dont forget, what the bank tells you is their "policy" does not mean that it is the law. It's hard to justify - simpler version:

They do not HAVE to pay you in cash, but they are NOT ALLOWED to tell you that you CANNOT have it in cash. If you want, it can be paid into your account arrears, but like I say, it cannot be forced this way. Their policies may suggest otherwise, but having a company policy like this is not breaking the law, remember, their poilicy will say "it is company policy where clients that have outstanding balances or arrears shall receive PPI refunds as an account credit" No law broken there - why? Cos there is a choice of refund method and they choose this as a standard policy - it does not mean that you cannot have it any other way, but you will have to ask for it - once they refuse, then they have a problem on their hands. Don't call up and ask for it, rec.del a letter or if you are going to phone, then record it.


I checked this out with my lawyer and another claims firm too and was told and confirmed by the BANK that this is the case. The bank only confirmed it when I demanded my charges be paid to me - then they let slip about PPI to uphold their right on not paying the charges back..

Oh and the proof? I was paid paid out via cheque after querying it, NO bank would write a cheque of they knew they didn't have to.

AJ.

~Brock~

AverageJoe wrote: »

NO. The bank MUST repay you in cash/cheque re: PPI - but:

1 - they will try to OR actually tell you that it is their policy to reduce outstanding arrears/balances with it

2 - you must NOT accept it as this another cheating way of gettin around paying you. Unless you complain about it, they will go ahead and do it like that as you would have not challeneged it.

Don't agree, and neither does the law, or indeed the Ombudsman.

If you are in arrears they have the right to offset any credits against those arrears.

AverageJoe_4

~Brock~ wrote: »

Don't agree, and neither does the law, or indeed the Ombudsman.

If you are in arrears they have the right to offset any credits against those arrears.

Sorry mate, in this case they cannot force it. PPI is a separate product which has been proven to have been mis-sold (in the successful case) and therefore the money should never have been spent in the first place - hence why you get back interest to compensate you for your loss. The bank cannot then force you to then spend that money including the interest they just paid out to you, with their company for the benefit of their business. It is not company money and they have no juristriction or control over it.

Charges are different, ever wondered why you don't get interest on bank charge refunds..??

Phone a solicitor or a PPI claims firm and they will tell you the different between charges and PPI claiming.

You have to be sharp in assessing their policies on how they are worded. I have this information from a bank itself when I queried my own case.

AJ

mikeb222

Well, got 1 month arrears and about £180 in charges, so probably owe £440.
They should be refunding me £1200 so even after taking off what owed, still leaves £760.
I am in hardship as they already know and need this money, so I'm kinda hoping Joe is right!

~Brock~

I agree that what you say would apply if the refund was due from a separate company, but if the FOS ruling is for the actual bank to make the refund, then they have the right to offset.

AverageJoe_4

~Brock~ wrote: »

I agree that what you say would apply if the refund was due from a separate company, but if the FOS ruling is for the actual bank to make the refund, then they have the right to offset.

There all are separte companies, the bank gets a commission for selling it.

Where does it state that banks are not obliged to pay ppl out in cash?

EVERYONE is getting paid out in cash, NO ONE is getting paid out in cash for charges on active account unless it outways the account itself.

They cannot keep it from you - they would of they could but they know they can't which is why they haven't been able to.

Seriously, phone a few firms and get back to me in say 20 mins....

AJ

~Brock~

AverageJoe wrote: »

There all are separte companies, the bank gets a commission for selling it.

That's the point. If the bank is the seller, and the FOS say it was missold, it is THEY who have to refund - not the insurance company.

AverageJoe_4

Brock - I am only arguing my point as i have had first hand information and experince at it. I am yet to find a bank that has refused to pay out a person in cash and stuck by it all the way to the bitter end and succeeded with that stance.

They try to, but they get nowhere. Charges are different.
Halifax refunded my PPI in full but refused to pay out on charges. I have it in black and white.

"We are not obliged to make direct cash equivelient payments when refunding bank charges"

This was thier letter to me. There was no such letter for the PPI which was considerably more money too btw.
I phoned them and asked them politeily to refund me via cheque, got put on hold and told OK 2 mins later - no argument, no bother.

Neither if us are lawyers, but I am passing on information from one directly, a claims firm directly and a Bank Collections Manager directly. They told me the same thing and as far as this forum goes, that's good enough for me.

~Brock~

Not sure that you realise this, but I do agree with most of what you said, which is why I only quoted part of your original post.

Banks are not obliged to pay out cash over and above clearing arrears on loans or unauthorised overdrafts. That's the bit I am talking about, and appears to be confirmed by the Ombudsman page that I linked to.