Halifax PPI Query - Help!!

sm1976_2

Hi,

Yesterday I received two uphead claims from Halifax for PPI. One is for a current loan which I am still paying monthly. The other is for a loan which was paid off last year.

They are now asking for me to sign and send back two forms stating that its ok for them to release the funds. However, it says something about redress or outstanding balances being paid off before sending me a 'win'.

Does this mean that anything they give me for the current 'live' loan would be paid towards the balance rather than sending me a cheque?

The other 'closed' loan is fine, and look forward to receiving there money!!!

IANC

sm1976 wrote: »

Hi,

Yesterday I received two uphead claims from Halifax for PPI. One is for a current loan which I am still paying monthly. The other is for a loan which was paid off last year.

They are now asking for me to sign and send back two forms stating that its ok for them to release the funds. However, it says something about redress or outstanding balances being paid off before sending me a 'win'.

Does this mean that anything they give me for the current 'live' loan would be paid towards the balance rather than sending me a cheque?

The other 'closed' loan is fine, and look forward to receiving there money!!!

No, they will remove any future PPI from the 'live' loan and your premiums will reduce.

You will receive the ppi redress.

They only use it to pay outstanding debt, and by this they mean any arrears etc. (missed payments and the like)

dunstonh

Does this mean that anything they give me for the current 'live' loan would be paid towards the balance rather than sending me a cheque?

Typically, where there is a default or arrears, they will clear those first with any surplus being paid to you. Where there is no arrears/defaults, they usually issue the money to you directly.

smitchy73

Hi sm, if your current loan isn't in arrears you can ask for this to be directly to you, you shouldn't need to give reason's but might be wise to have one anyway. When they refund your ppi to you, FSA(Financial Services Authority) says that you should be put back into the position you would've been in if there had been no ppi, therefore you should receive back the ppi part of your monthly repayments including the interest at the chargeable rate PLUS 8% interest from the date the payment was made, there is a calculator in the Bank Charges section of the main site. This will tell you the minimum amount you should be due back, then on your live loan your monthly repayment should drop by the amount of the ppi repayment.

This is the section from the FSA Handbook FS10/36

[FONT=TimesNewRoman,Bold]

3.9 Other matters concerning redress

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3.9.1 G Where the complainant’s loan or credit card is in arrears the [FONT=TimesNewRoman,Italic]firm [/FONT]may, if it has
the contractual right to do so, make a payment to reduce the associated loan or
credit card balance, if the complainant accepts the [FONT=TimesNewRoman,Italic]firm’[/FONT]s offer of redress. The

[FONT=TimesNewRoman,Bold][FONT=TimesNewRoman,Bold]

FSA 2010/36

[/FONT][/FONT]

Page 13 of 14

[FONT=TimesNewRoman,Italic]

firm [/FONT]should act fairly and reasonably in deciding whether to make such a

payment.

Also when you took out the 2nd loan did you refinance the 1st loan you had? If you did there should be some more due back to you as normally there is a balance from the ppi from the first carried over on to the second, therefore increasing the amount of money you required on the second loan.

Hope this helps.

sm1976_2

Great, Thanks for your help.

The 'live' loan was worrying me as I stupidy went through a third party claims company. I didn't want to have a lot of money paid onto my existing loan balance, only for the 'third party' to then ask for there % of the win when i hadn;t acutally received any hard cash (if you see what I mean!)

thanks again.

sm1976_2

Thanks for that.

No I didn't use the existing loan to setup the newer one. They were seperate and ran side by side.

sm1976_2

and just to finish ... , Halifax asked me when i took out the loan in 2009 (over 9K) if I wanted PPI. Said no and that I would sort out my own private insurance to cover it, which I did at £7 a month through my insurance company.

Only to find out yesterday that they had put it on anyway. Peed off is not the word at the mo!!