ppi refunded

racheldazo

hi, had a letter from lloyds on 22 March 2011, as i wanted to reclaim ppi through fos, anyway cutting a long story short, had a letter saying that the difference betweeen the actual balance and revised balance is £313.19 and the interest is £22.13, so the redress is £335.32. More than i thought, they said on the first page that a settlement cheque will follow, but im a bit apprehensive, as i cannot make head nor tail of the following page, the breakdown of calculations. I have an outstanding balance on the card of £1,611.72, and have an agreement to pay £20 a month due to financial difficulties, but am thinking will they take the refund amount off the balance?
When i cancelled the ppi when i knew it was on the account back in May 2007, my balance on the card was 0 until Dec 08. Can anyone shed light on this letter, will i receive a cheque as stated on the first page? Or can they take if off the balance even though i have an agreement with them?
Any info gladly received

ps, hopefully the postman may bring a cheque this morning,

di3004

Hiya

Well done on your success.

If there is any outstanding debt/arrears it is known that any refunds is normally awarded towards the debt, however anything remaining plus interest would normally be awarded directly to you.

Unless someone else says otherwise, good luck.;)

dunstonh

but am thinking will they take the refund amount off the balance?

Providers are allowed to use the redress payment within the product being complained about. i.e. reducing your debt owed. If you are in arrears or have had debt written off, that nearly always happens. If you are not in arrears or had debt written off then it is left to the provider to decide. Some issue a cheque, some reduce the balance, some give you the choice. It isn't something we can really guess.