More mess from Barclays: Where should PPI refunds go?

[Deleted User]

Hello,

I've got another thread here about my PPI complaint:

http://forums.moneysavingexpert.com/showthread.html?t=2020069

I've got a query regarding all of these PPI refunds, however.

I've just received a 2nd PPI refund from Barclays (I received a refund in 2006 and I've got the remainder last week) which they've credited to my current account.

I think this is really quite unfair, as I can't overpay on my loan, so although I've received money, Barclays are still enjoying quite lucrative interest on the balance that I can't reduce.

So, my question is this: how do other banks handle PPI refunds? Shouldn't any refund go towards the loan balance rather than cash to the debtor?

[Deleted User]

Or, put more simply - how can I force Barclays apply refunds of PPI to the loan rather than my current account?

marshallka

Deleted_User wrote: »

Or, put more simply - how can I force Barclays apply refunds of PPI to the loan rather than my current account?

If they have refunded the PPI in full then you should be allowed to make a lump sum payment ( I would think) towards the loan account without any penalty. I would write and ask that they allow this refund to be paid towards your loan and if they do not then make another complaint as they are not treating you fairly perhaps.