Halifax credit card PPI success but can they keep the money?

LouB2

Hi I'm new to this and seem to have posted in the wrong place so hopefully 3rd time lucky.
I am reclaiming a number of charges for a friend who is in financial hardship, the CCCS have advised him to take an IVA but he is keen to try to sort things out himself. I have arranged token payments on his 2 credit cards which has helped free up some money to pay of other debts. He has just had a letter from the Halifax saying they will refund his PPI which was missold due to him being self employed they are refunding £2153 which includes interest and the 8%:beer: BUT they are going to take the money directly off his credit card rather than send him a cheque Although the refund is fantastic it would have been really useful right now to have been able to use it to pay of more urgent debt ie. the tax man. Does anyone know if they are allowed to do this? I can't help thinking that his debt problems would have been less if he hadn't been paying the PPI so for them to keep the money seems a little unfair.
Thanks so much for all the info and resources on the site, wouldn't have known where to start without it. Will keep you posted on the other 5 claims!

di3004

LouB2 wrote: »

Hi I'm new to this and seem to have posted in the wrong place so hopefully 3rd time lucky.
I am reclaiming a number of charges for a friend who is in financial hardship, the CCCS have advised him to take an IVA but he is keen to try to sort things out himself. I have arranged token payments on his 2 credit cards which has helped free up some money to pay of other debts. He has just had a letter from the Halifax saying they will refund his PPI which was missold due to him being self employed they are refunding £2153 which includes interest and the 8%:beer: BUT they are going to take the money directly off his credit card rather than send him a cheque Although the refund is fantastic it would have been really useful right now to have been able to use it to pay of more urgent debt ie. the tax man. Does anyone know if they are allowed to do this? I can't help thinking that his debt problems would have been less if he hadn't been paying the PPI so for them to keep the money seems a little unfair.
Thanks so much for all the info and resources on the site, wouldn't have known where to start without it. Will keep you posted on the other 5 claims!

Hi there and welcome.;)

Think I may have posted back to your post yesterday, well done to your friend and for you helping him.
:beer:

Unfortunately this seems to be the way they do this, if any money is owing, arrears etc, but I know what you mean, being in hardship, the money would have been a help in other ways.

There are many who have been in the same situation on the "debtwannabe" thread, if you've not done so yet, perhaps it would be a good idea to post about this on there to see what others have done, good luck.
http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Good luck with the other claims as well.;)

LouB2

Thanks, the first letter said they would take back anything owed over his limit and send him a cheque for the rest but in the second letter it said they would keep it all. will see what else I can find out. Thanks again

PaulinWeston

Did you specifically ask for the refund to be made by cheque? If you did then you have a good chance of getting the money (even if you have to complain to the FOS to get it).

Alternatively, if they insist on using the money to offset the money owed on your credit card – I would write back and say that you require interest on the premiums paid at the APR on the credit card (which is probably going to be higher than the 8% statutory amount).

Say something like: “pursuant to the County Courts Act 1981 section 69 at the APR of x%. It is just and equitable that interest be repaid at x % because the money paid would otherwise have gone towards discharging the indebtedness under the credit card agreement.”

Hope this helps

melorablack

PaulinWeston wrote: »

Did you specifically ask for the refund to be made by cheque? If you did then you have a good chance of getting the money (even if you have to complain to the FOS to get it).

Alternatively, if they insist on using the money to offset the money owed on your credit card – I would write back and say that you require interest on the premiums paid at the APR on the credit card (which is probably going to be higher than the 8% statutory amount).

Say something like: “pursuant to the County Courts Act 1981 section 69 at the APR of x%. It is just and equitable that interest be repaid at x % because the money paid would otherwise have gone towards discharging the indebtedness under the credit card agreement.”

Hope this helps

Halifax always give you a refund of premiums paid, interest at the rate of the card charged on these premiums and 8% so there is no need for this.

PaulinWeston

melorablack wrote: »

Halifax always give you a refund of premiums paid, interest at the rate of the card charged on these premiums and 8% so there is no need for this.

"Always" ????

melorablack

PaulinWeston wrote: »

"Always" ????

with PPI reclaims - yes, always.