refunding PPi but taking it off outstanding borrowing????

philfoster

if we are successful in reclaiming the PPi from a loan or credit card are the company then allowed to for instance with credit cards refund the money back onto the card? i owed £3000 and had never missed monthly payments after enquiring about been mis-sold the ins was told i would recieve a full refund of £3067 they paid the card in full and credited me with £67 is this right? are the allowed to do this as i said i did not want the money coming off my card and they just ignored my request

:(

di3004

philfoster wrote: »

if we are successful in reclaiming the PPi from a loan or credit card are the company then allowed to for instance with credit cards refund the money back onto the card? i owed £3000 and had never missed monthly payments after enquiring about been mis-sold the ins was told i would recieve a full refund of £3067 they paid the card in full and credited me with £67 is this right? are the allowed to do this as i said i did not want the money coming off my card and they just ignored my request

:(

Hi there

Well done to you anyway.:beer:

If there were no arrears, then you could request they refund directly because you have already been deprived and out of pocket due to this in the first place.

If they confirmed it was all coming back to you, then I would write to them and ask what is going on.

Did they confirm this in writing?

Good luck.

marshallka

Can you not just draw the money back off the card again?

dec22

It would probably be treated as a cash advance and you would then pay exorbitant cash interest rates. Barclaycard were the only ones to give me the option of refunding directly to me, all the others refunded baack onto my card and the FOS seemed to think this was ok.

Write or phone them as Di says or send a complaint to the FOS. Shouldn't be so long at the FOS as it is only a query regarding redress not an misselling complaint.

Well done anyway and good luck with sorting out the refund!!

marshallka

PPI_Help wrote: »

Unfortunately they are allowed to use the redund on credit cards to reduce your outstanding balance. This is because they are putting you back into the position you would have been in if you had not taken PPI.

With a loan this means refunding you the money directly, because if you hadn't had PPI the loan would have been for less, and you would have had more cash.

For a credit card, you are not paying for the the PPI premiums directly, they are just adding it to your outstanding balance. Therefore if you did not have the insurance, your outstanding balance would be less but you would not have any more cash.

You should be able to spend back up to your limit though, which in affect is the same as if they refunded you directly.

Ben - helping out where he can

Thanks for that one Ben, I know that in cases like this before FOS have sometimes allowed it this way. I see what you mean also and it explains it well.