Reclaimed PPI gone towards debt - Advice required

Paul_Blue_2

Hi all,

I recently claimed back PPI from an outstanding Halifax Credit Card which I can no longer use. I was told that I was owed roughly £400 from this insurance that was mis-sold to me at the time of taking out the credit card.

However, I have now been informed that this payment will not be issued to me, but instead has been put towards the debt I owe to the credit card balance!!

I have defaulted on this account since I took out the credit card. I lost my job awhile back, and have not been able to keep up the agreed payments. I wouldn't mind but I couldn't even claim on the PPI as I was not covered in the terms and conditions!!

Obviously I'm a bit in the dark and would like to know if the Halifax are right to do this, and can they take such an action without my consent??

I'm really irate over this as you can imagine. Any help would be most appreciated.

Yours P

marshallka

As this was credit card PPI your PPI charged (that was then refunded??) would have gone onto your balance and your balance would have increased by that amount so in effect you have not paid the money out so they are entitled to put the refund towards the debt you owe. It then reduces the debt so not all lost.

DId you ask for the 8% statutory interest and was the amount ALL the PPI you had on the card?

Paul_Blue_2

Hi marshallka, thanks for your reply.

I never asked for the statutory interest, as I don't know what this is nor was it ever explained to me. When you say was the amount all the PPI on the card, do you mean did it cover the balance owed?? :huh:

If so, no it hasn't I still owe debt on the card although this has now been reduced.

I'm sorry if I cannot be more specific, I just find it all really confusing...