Can they do this?

Babydoll153

I have been finally successful in reclaiming PPI with Barclaycard but they want to put all of the money against the money outstanding on my card, can they do this?
I feel it`s a bit cheeky saying how I can have 'my money' back?
Please does anyone have any advice for me? Thanks x

dunstonh

If you are in arrears or over your limit on the card then they can use the refund to clear those first before paying any to you. If not, they should repay the money to you.

I feel it`s a bit cheeky saying how I can have 'my money' back?

They are giving it to you. You spent it on the card and they are putting it back on the card. Therefore it cancels it out as if it never happened. it is the most logical way of doing it. However, that doesnt mean they can do it as mentioned above with the exceptions.

londongal76

I see that as a good thing personally, it's £xxxx you don't have to pay off the card, and your debts go down. Surely that's a win/win?

marshallka

Londongal76 wrote: »

I see that as a good thing personally, it's £xxxx you don't have to pay off the card, and your debts go down. Surely that's a win/win?

Hmmm, but if the card is perhaps 0% interest for a while (not saying that is the case with the OP) or the OP is paying a higher debt percentage elsewhere then its not really fair. If the OP is in arrears then fair enough but looking at it broader than that a consumer should really have a right to do what they want with the money that was wrongly taken the first place. I know they can most likely draw down the balance again but it could be at a much higher rate than the debt is being charged at now.

the_knitting_drummer

marshallka wrote: »

Hmmm, but if the card is perhaps 0% interest for a while (not saying that is the case with the OP) or the OP is paying a higher debt percentage elsewhere then its not really fair. If the OP is in arrears then fair enough but looking at it broader than that a consumer should really have a right to do what they want with the money that was wrongly taken the first place. I know they can most likely draw down the balance again but it could be at a much higher rate than the debt is being charged at now.

The OP has has absolutely no right to have the refund paid in cash if there is a balance on the card.

Let me try to explain what Dunston already explained perfectly clearly:

The OP never paid any cash for PPI, as it was applied to the card balance. A fair refund is to put the OP back into the position they would be in if they never had PPI. If they had not had PPI, they would not have more cash in their pocket right now, they would just have a smaller card balance. It makes perfect sence then for the refund to reduce the card balance.

If you want cash, go on a spending spree with your credit card.

biondani

the_knitting_drummer wrote: »

The OP never paid any cash for PPI, as it was applied to the card balance. A fair refund is to put the OP back into the position they would be in if they never had PPI. If they had not had PPI, they would not have more cash in their pocket right now, they would just have a smaller card balance.

And how do you think the OP paid their card bills? If they didn't have PPI then they would have had more cash in their pocket as they wouldn't have had such a high bill.

Ian

marshallka

the_knitting_drummer wrote: »

The OP has has absolutely no right to have the refund paid in cash if there is a balance on the card.

Let me try to explain what Dunston already explained perfectly clearly:

The OP never paid any cash for PPI, as it was applied to the card balance. A fair refund is to put the OP back into the position they would be in if they never had PPI. If they had not had PPI, they would not have more cash in their pocket right now, they would just have a smaller card balance. It makes perfect sence then for the refund to reduce the card balance.

If you want cash, go on a spending spree with your credit card.

Yes, fair point... consider myself told... I did not actually think TBH.... yes the charge on a credit card is not actually paid out as such so apologies, my mistake.

(and no, I am not going to consider taking up knitting instead...!!)


Gets complicated though when certain percentages (offers) are made I think.... if the OP took so much money at a certain percentage per annum and then so much was paid at another rate.... ??