PPI decision overturned?

kirlou80

I wrote to welcome finance 2 years ago about being mis-sold PPI. They very quickly returned my letter and turned me down. I was going to go to the Ombudsman but I was going through a very touch and go pregnancy and really could not afford extra stress.

Yesterday I received a letter telling me the decision had been overturned as they were unsatisfied with the decision and could not prove that I was not mis-sold afterall. However, the fun and games now start...I found out a while ago that more interest was being added to my account every month than what my monthly repayment was..I was never asked to up my monthly repayments so was unaware until this interest, now classed as ARREARS was on my account. Now my award of £5,251,36 will be used against my arrears of nearly £6000.
Can they do this?? And what can I do about being charged all this interest? Is it not against the law to charge me more interst than my monthly repayment and not tell me??
Thanks guys

dunstonh

Can they do this??

yes they can.

And what can I do about being charged all this interest?

The redress should include an interest calculation. i.e. PPI premium plus interest.

Is it not against the law to charge me more interst than my monthly repayment and not tell me??

No its not.

As long as they are refunding the premium plus any interest that has accrued from that premium then you are not out of pocket because of it. They are allowed to use any redress to cover any debt written off previously, any arrears or reduce your current outstanding borrowing.

steveimp

I agree. It's a result to be honest and you have less debt with them.

Superstylin_2

I thought this would be the case with my lloyds claim, but when i spoke to them and asked them outright if it would be used to pay any agreements i have with them they said no, the money would go into my current account and was mine to do what i wanted with. I think that makes sense to be honest, it would be my money to do what i wanted with if they hadnt taken it in the first place!!

Superstylin_2

Bottom line is i suppose that you should use it to try and clear debt though, so them using it to pay off most of your loan is no bad thing, then you'll have x amount extra every single month, good times.