PPI offer

natwatts

Can anyone offer me some advice?

My bank has has offered me a PPI refund, but because i still owe on the loan they are saying the payment i will recieve will go straight to my oustanding balance.

I am quite happy repaying the loan off.

Can they do that or can i choose to see a cheque through the post?

cheers
Nat

[Deleted User]

from what ive read they usually take it off the loan if theres still an outstanding balance,at least it should save you some more money in interest

amersall

Usually, they can only take this if you have arrears with this being a loan. If it was a cc then they can take it off the balance, if i were you i would give fos a ring and find out where you stand. You took a loan over x months and x amount and if they take your win off the loan (and it is not in arrears), then i think they have changed the agreement you signed for the loan. I could be wrong here, but that is how i see it.

crazyguy

natwatts wrote: »

Can anyone offer me some advice?

My bank has has offered me a PPI refund, but because i still owe on the loan they are saying the payment i will recieve will go straight to my oustanding balance.

I am quite happy repaying the loan off.

Can they do that or can i choose to see a cheque through the post?

cheers
Nat

You can get a payment via cheque on this even if the account is/was in arrears, they must adhere to the correct proceedures and telling you the payment must be put towards the balance is wrong.

Tell them you want it back in the form of a cheque or you will take the issue up with the FOS and FSA.

~Brock~

crazyguy wrote: »

You can get a payment via cheque on this even if the account is/was in arrears, they must adhere to the correct proceedures and telling you the payment must be put towards the balance is wrong.

Tell them you want it back in the form of a cheque or you will take the issue up with the FOS and FSA.

This is incorrect. Imagine you took out a loan and never made a penny back in repayments. You cannot then expect to be repaid additional premiums back in cash, because you never actually physically paid them in the first place.

A firm is only required to repay money actually paid, which is calculated as any overpayment once a loan has been restructured without the PPI.

EG

You have been paying £250 per month for 20 months, of which £50 per month is for PPI. The total amount paid so far is £5000 and payments are up to date.

Without PPI, the total repayable so far would have been £4000. Because you have so far paid £5000 you are entitled to get the extra £1000 back. Your payments will continue at £200.

Now, imagine it's the same situation but you are three months overdue. The total amount owing so far is £5000 but you have only paid £4250.

In this case, after restructuring the loan the amount due to date is £4000, but you are only entitled to £250 back. If after restructuring you are still showing as in arrears then you are not entitled to any refund.

This is entirely consistent with the FOS approach to these cases. Their published guidance is here but it does not make it clear about how defaulted loans are handled, which adds to the confusion.

This is also why claims companies don't like taking on clients who are in arrears with the loan they are claiming on, because they dont get a nice fat cheque from which to deduct their fee, and end up having to chase the customer who by virtue of the fact that he didnt pay the loan in the first place is likely to be skint.

crazyguy

~Brock~ wrote: »

This is incorrect. Imagine you took out a loan and never made a penny back in repayments. You cannot then expect to be repaid additional premiums back in cash, because you never actually physically paid them in the first place.

A firm is only required to repay money actually paid, which is calculated as any overpayment once a loan has been restructured without the PPI.

EG

You have been paying £250 per month for 20 months, of which £50 per month is for PPI. The total amount paid so far is £5000 and payments are up to date.


Without PPI, the total repayable so far would have been £4000. Because you have so far paid £5000 you are entitled to get the extra £1000 back. Your payments will continue at £200.

Now, imagine it's the same situation but you are three months overdue. The total amount owing so far is £5000 but you have only paid £4250.

In this case, after restructuring the loan the amount due to date is £4000, but you are only entitled to £250 back. If after restructuring you are still showing as in arrears then you are not entitled to any refund.

This is entirely consistent with the FOS approach to these cases. Their published guidance is here but it does not make it clear about how defaulted loans are handled, which adds to the confusion.

This is also why claims companies don't like taking on clients who are in arrears with the loan they are claiming on, because they dont get a nice fat cheque from which to deduct their fee, and end up having to chase the customer who by virtue of the fact that he didnt pay the loan in the first place is likely to be skint.

Wrong, wrong and wrong again.

I had a loan with Ulster Bank Plc all part of HBOS/ Lloyds TSB.

My loan was being paid fine up until going into a debt management plan, stupidly I used one of the big debt managment company's as opposed to the charity one, then I found they were messing about with payments to creditors so paid the creditors direct at a highly reduced rate, six months later I contacted Ulster Bank re:- PPI reclaim and went through the usual proceedure of writing to them and then got a confirmation back on the amount due to paid to me and asked if I wanted a payment via cheque or payment towards the outstanding balance that was owed.

So even still in arrears and owing a balance I got a cheque back, so if you are paying back something off of the actual balance they must give you the choice of a cheque or payment off of the outstanding balance.

Apples2

crazyguy wrote: »

So even still in arrears and owing a balance I got a cheque back, so if you are paying back something off of the actual balance they must give you the choice of a cheque or payment off of the outstanding balance.

So was your cheque of the same value as it would have been had you not decided to stop repaying at the agreed rate?

crazyguy

Apples2 wrote: »

So was your cheque of the same value as it would have been had you not decided to stop repaying at the agreed rate?

My payment for ppi was for exactly the same amount as if the loan amount was paid at the initial agreed rate.

~Brock~

crazyguy wrote: »

Wrong, wrong and wrong again.

I had a loan with Ulster Bank Plc all part of HBOS/ Lloyds TSB.

My loan was being paid fine up until going into a debt management plan, stupidly I used one of the big debt managment company's as opposed to the charity one, then I found they were messing about with payments to creditors so paid the creditors direct at a highly reduced rate, six months later I contacted Ulster Bank re:- PPI reclaim and went through the usual proceedure of writing to them and then got a confirmation back on the amount due to paid to me and asked if I wanted a payment via cheque or payment towards the outstanding balance that was owed.

So even still in arrears and owing a balance I got a cheque back, so if you are paying back something off of the actual balance they must give you the choice of a cheque or payment off of the outstanding balance.

A firm is not expected to refund PPI payments that were not made in the first place caused by non payment of the actual loan itself. In the same context, someone reclaiming PPI on a loan that was written off will not get any cash award unless it is over and above the amount of write off or amounts owing under a DMP. There are many on the PPI forum that will happily confirm this.

If you dont believe me then I really dont care - phone the FOS on the subject if you like.

However please don't make the mistake of using your limited experience of this subject to give advice to others that could prove costly to them in the long run. There is already enough bad advice on internet forums generally.

crazyguy

~Brock~ wrote: »

A firm is not expected to refund PPI payments that were not made in the first place caused by non payment of the actual loan itself. In the same context, someone reclaiming PPI on a loan that was written off will not get any cash award unless it is over and above the amount of write off or amounts owing under a DMP. There are many on the PPI forum that will happily confirm this.

If you dont believe me then I really dont care - phone the FOS on the subject if you like.

However please don't make the mistake of using your limited experience of this subject to give advice to others that could prove costly to them in the long run. There is already enough bad advice on internet forums generally.

Some of you people on these forums make me laugh you think that no one else can possibly be right.

My ppi claim was refunded and I had paid ppi for best part of 2 years and yes I did get all the ppi that was paid refunded to me.

The OP wrote about getting back ppi and I gave full and frank details of getting mine back, please explain why you feel the need to attempt to either rubbish and or dispute the facts I originaly listed, I can see you gaining nothing from this but attempting to look rather clever.

My thread was both truefall and concise with the facts that happened surrounding my own claim.

I was only trying to assist the originator of this entire thread and state my case.

~Brock~

crazyguy wrote: »

Some of you people on these forums make me laugh you think that no one else can possibly be right.

My ppi claim was refunded and I had paid ppi for best part of 2 years and yes I did get all the ppi that was paid refunded to me.

The OP wrote about getting back ppi and I gave full and frank details of getting mine back, please explain why you feel the need to attempt to either rubbish and or dispute the facts I originaly listed, I can see you gaining nothing from this but attempting to look rather clever.

My thread was both truefall and concise with the facts that happened surrounding my own claim.

I was only trying to assist the originator of this entire thread and state my case.

I am pleased that I seem to make you laugh, however I do not profess to be a comedian. I am, in fact, someone with almost 30 years experience in financial services and who has plenty of experience of dealing with FOS, a healthy relationship with the FSA and a lot of knowledge of the business models and practices of CMC's (including all their tricks and dodges).

I have no axe to grind with you or any other forum member, and generally will add my comments to a thread such as this when there is incorrect advice being given, because I have first hand experience with just how stupid people look when they end up acting on some of the advice dished out on forums such as this (although to be fair CAG is much, much worse).

Whilst I do not deny that you were 'only trying to assist' the fact remains that your advice is incorrect, and it is wrong to take your own clearly limited experience of this subject as the basis for giving advice.

The simple facts are as follows. If a loan is up to date at the time of a PPI refund being processed then yes it is true that the customer can have the choice of whether to take the cash or reduce the loan.

If, however, a loan is in arrears, or written off, then any PPI refund can be used by the lender to mitigate these arrears and/or reduce any losses in the first instance.

Carry on with your attitude towards me all you like - like i said I don't care because I will leave it for other readers to decide who is correct.