Can a PPI Payment be used to pay anything else?

speycaster

This has probably been anwered elswehere but can a PPI payment, in this case to cover a loan whilst I was unable to work be used other than to pay the loan?
My bank have been paying "sundry accounts" which I believe are their charges with the money specifically paid into my account to pay my loan. This put me in debt on my loan account. Am I right in saying that PPI or any other insurance payments are allocated as a crossed cheque would be and can only be paid to the account thay are allocated to? Surely if I got access to this money and used it for a holiday in the Bahamas I would be charged with insurance fraud or misappropiation of funds?

di3004

speycaster wrote: »

This has probably been anwered elswehere but can a PPI payment, in this case to cover a loan whilst I was unable to work be used other than to pay the loan?
My bank have been paying "sundry accounts" which I believe are their charges with the money specifically paid into my account to pay my loan. This put me in debt on my loan account. Am I right in saying that PPI or any other insurance payments are allocated as a crossed cheque would be and can only be paid to the account thay are allocated to? Surely if I got access to this money and used it for a holiday in the Bahamas I would be charged with insurance fraud or misappropiation of funds?

Hi there

To my knowledge it's only used for instance for sickness and unemployment and life cover is that is included in the insurance, but not for anything else.

I'm sure someone will confirm.;)

speycaster

Is there anybody out there who can help me on this?
Are the bank breaking the bankingcode/law?