PPI Pay back!

kayleigh_c1985

Hi,

I have recently put my complaint in against Barclays for paying PPI and have managed to get nearly £900 back. However barclays are saying that because there are arrears on the account (only very slight and i pay back a monthly payment) they are going to take the £900 off my outstanding balance. I have debts that i could clear with this money with higher interest rates but Barclays are refusing to give me the money.

Is there anything i can do to get this money back? The arrears that i have are from many moons ago and there is a monthly payment being made.

I dont see how they can take this money off you and then decide how they pay you back!!

Any help would be much appreciated!

di3004

kayleigh_c1985 wrote: »

Hi,

I have recently put my complaint in against Barclays for paying PPI and have managed to get nearly £900 back. However barclays are saying that because there are arrears on the account (only very slight and i pay back a monthly payment) they are going to take the £900 off my outstanding balance. I have debts that i could clear with this money with higher interest rates but Barclays are refusing to give me the money.

Is there anything i can do to get this money back? The arrears that i have are from many moons ago and there is a monthly payment being made.

I dont see how they can take this money off you and then decide how they pay you back!!

Any help would be much appreciated!

Hi and welcome

First of all well done on your success.:beer:

Unfortunately, this seems to be the way it works with most banks, but if there is anything remaining once the arrears are paid, you should receive the remaining plus interest if any as well, maybe someone else will also clarify on this one.;)

kayleigh_c1985

So, the arrears will be paid off and then i should recieve the rest?

I have spoken to Barclays and they have said that nothing can be done, the decision has been made to pay the arrears off, so if i want to go to the Financial Ombudsman then i can, but really what will this gain?

dunstonh

I dont see how they can take this money off you and then decide how they pay you back!!

It it quite normal for financial redress to be paid back into the product in question. In some cases it can be paid direct but where there are arrears or write offs, then the lender can use the redress to clear those first.

Remember that the debt is higher because of the PPI. You are complaining you shouldnt have the PPI. So, to put you in the position you would have been had you not had the PPI requires them to pay it off the debt. If they do not, you would effectively be borrowing money they did not initially agree.

so if i want to go to the Financial Ombudsman then i can, but really what will this gain?

The FOS will agree with Barclays as they are correct.

marshallka

dunstonh wrote: »

Remember that the debt is higher because of the PPI. You are complaining you shouldnt have the PPI. So, to put you in the position you would have been had you not had the PPI requires them to pay it off the debt. If they do not, you would effectively be borrowing money they did not initially agree.



The FOS will agree with Barclays as they are correct.

That is a good way of putting it Dunstonh.

I assume this is to safeguard the paying back of their own loans first and foremost just in case they were having to be written off.

dunstonh

marshallka wrote: »

That is a good way of putting it Dunstonh.

I assume this is to safeguard the paying back of their own loans first and foremost just in case they were having to be written off.

It is. The OP said they wanted the money to clear other debts. That isnt in Barclays interests.

marshallka

dunstonh wrote: »

It is. The OP said they wanted the money to clear other debts. That isnt in Barclays interests.

Don't think it would be in any "business" interests TBH I guess!!!