PPI Success.. Can lender demand that award is deducted off loan

mrmaximum

If you have been missold PPI on an existing loan and are successful in your reclaim from the lender, can you request by law that you receive a refund by cheque/payment into bank and not have the amount deducted off your loan..?

If they deduct it off your loan surely they are altering your terms and conditions without your consent...?

Any compensation should be paid to you and if you wish to pay it off your loan then ok but you should be given the choice... !

Any one know the legal arguments for this please..

Thank you..

di3004

mrmaximum wrote: »

If you have been missold PPI on an existing loan and are successful in your reclaim from the lender, can you request by law that you receive a refund by cheque/payment into bank and not have the amount deducted off your loan..?

If they deduct it off your loan surely they are altering your terms and conditions without your consent...?

Any compensation should be paid to you and if you wish to pay it off your loan then ok but you should be given the choice... !

Any one know the legal arguments for this please..

Thank you..

Hi and welcome

If there are no arrears then yes you can request that they refund you, as you have already been deprived of your money, so why should it go back to them sort of thing (although onto your account to deduct), if they do not do this for you then you can complain, if they do not resolve this then move on to the FOS.

Good luck.;)

network_analyst

mrmaximum wrote: »

If you have been missold PPI on an existing loan and are successful in your reclaim from the lender, can you request by law that you receive a refund by cheque/payment into bank and not have the amount deducted off your loan..?

If they deduct it off your loan surely they are altering your terms and conditions without your consent...?

Any compensation should be paid to you and if you wish to pay it off your loan then ok but you should be given the choice... !

Any one know the legal arguments for this please..

Thank you..

I got my PPI back from Northern Rock with 8% intrest and that was paid into my savings account or i could have been sent a cheque. And they altered the payments ,so no problems.

mrmaximum

still think that you should be able to demand they pay in cheque or into bank but wondered if there was legal arguments to support this...

dunstonh

If the PPI was added to the loan then any rebate would in theory be logical to rebate to the loan. Financial services redress is based on putting you in the position you were before the transaction took place. This is interpreted in different ways. Some may pay out, some may adjust the contract.