Can PPI refund be taken from loan balance?

Erv

RBS made an offer on PPI, but only on the basis that it be taken off my loan balance rather than paid to me. This goes against the FOS guidelines, so I complained to FOS and they upheld it.

Now RBS are recalculating their offer as they had not included the 8% interest (Loan started in 2000!). But they are saying that they may still not offer to pay it back to me, and may remove it from my loan balance - the reason for this is my CCJ.

I foolishly took out this loan when I was 21yrs old. I defaulted and entered into a Tomlin Order. My landlord at the time was extending my flat and the roof caved in (but it was the rain that did the damage!). In my haste to find somewhere else to live, I missed a payment. It went straight to CCJ in 2004. In those 6 years I have not missed a single repayment to them (about £6/7k repayed).

They are saying that under the CCJ agreement, they may be able to avoid repaying me the PPI. Normally I would be inclined and happy to reduce my balance, but having been made redundant for the first time in my life - having the extra cash means I can continue making regular payments to them.

Any advice on how to fight this? Many thanks

di3004

Erv wrote: »

RBS made an offer on PPI, but only on the basis that it be taken off my loan balance rather than paid to me. This goes against the FOS guidelines, so I complained to FOS and they upheld it.

Now RBS are recalculating their offer as they had not included the 8% interest (Loan started in 2000!). But they are saying that they may still not offer to pay it back to me, and may remove it from my loan balance - the reason for this is my CCJ.

I foolishly took out this loan when I was 21yrs old. I defaulted and entered into a Tomlin Order. My landlord at the time was extending my flat and the roof caved in (but it was the rain that did the damage!). In my haste to find somewhere else to live, I missed a payment. It went straight to CCJ in 2004. In those 6 years I have not missed a single repayment to them (about £6/7k repayed).

They are saying that under the CCJ agreement, they may be able to avoid repaying me the PPI. Normally I would be inclined and happy to reduce my balance, but having been made redundant for the first time in my life - having the extra cash means I can continue making regular payments to them.

Any advice on how to fight this? Many thanks

Hi there

Sorry to hear about your issues here and hope its all resolved soon.

However if any arrears I am aware they are able to do this but this may vary depending on how the bank works and your reasons.

Do you have a good MP?
Just a thought as they will also need your votes soon as well, but otherwise hopefully someone else may have some good advice for you on this one, good luck, please keep us posted.;)