Halifax PPI Reclaim

Lola2806

Hi,

I recently put in a claim with Halifax for mis-selling my PPI on my credit card. They replied to me 2 weeks ago & basically weren't admitting liability, but as a "valued customer" they were going to make me an offer. Today I get a letter telling me the amount they were offering, but also stated that as I had defaulted on the account they would credit the amount to my debt with them!
Now, I am disputing this debt as they do not have an enforcable credit agreement for it, although Halifax haven't been dealing with me directly, I've been passed onto 3 debt collectors. Are Halifax allowed to do this, or can I get the money paid directly to me?

di3004

Lola2806 wrote: »

Hi,

I recently put in a claim with Halifax for mis-selling my PPI on my credit card. They replied to me 2 weeks ago & basically weren't admitting liability, but as a "valued customer" they were going to make me an offer. Today I get a letter telling me the amount they were offering, but also stated that as I had defaulted on the account they would credit the amount to my debt with them!
Now, I am disputing this debt as they do not have an enforcable credit agreement for it, although Halifax haven't been dealing with me directly, I've been passed onto 3 debt collectors. Are Halifax allowed to do this, or can I get the money paid directly to me?

Hello and good one on your success.:beer:

I think Melorablack would be the one to respond to this one, hopefully she will be along soon, but unfortunately this does happen.
However there is no harm in disputing this, give it a go and if it does not go your way, you can take this to the financial ombudsman service (FOS).

Hope Melorablack will see this post soon, good luck.;)

Lola2806

Thanks, I'll keep an eye out for any more replies. I'm currently drafting a letter to send them.I'm hoping it will work cos I wanted to use the money to pay off some other debts.

finatra26

Hi Lola, I am afraid they are perfectly within their rights to do this if you have been in arrears

melorablack

They are entitled to use the redress to reduce any outstanding debt. It can work out in your favour as you will be charged less interest/receive less in charges if the outstanding debt is lower.

Lola2806

Well that's annoying to hear, lol! Seems stupid really, this is money that they never should have had from me (as if I'd known PPI was optional I wouldn't have taken it!) so I would have preferred to decide how it gets used. I was hoping to split it between a few debts to reduce/clear them rather than let Halifax have it all! It wont make a difference in interest/charges as the account has been frozen so nothing extra is being charged.