URGENT Help Needed

Declans_Mummy

My partner made a claim with halifax which we just recieved the calculations letter.

They have said that he was getting 1008.00 but they will not be paying it as he made a claim on the insurance due to an accident which prevented him from working. The insurance paid his loan for 12 months, and there is still an outstanding balance as he has never been able to return to work,

Can halifax refuse to pay out the amount that has been charged? i understad that the ppi paid for some of his loan but with the outstanding balance is thre anything that can be done

Common_Sense_2

They can adjust any refund accordingly if a claim paid out.

amersall

This is correct,they have to take back the insurance that was claimed on.
Ask them for a breakdown of the ppi refund,the balance of the loan should reduce by the total ppi amount and your monthly payment should reduce by the ppi monthly amount,make sure they do this,and ask them for the 8% interest to come back to you,i believe they can give you this.
Give Halifax a ring and tell them you are in financial difficulty (if you will struggle to pay after the reduced ppi monthly payment has come off)and ask for a reduced payment for this loan.

magpiecottage

If, and only if, the policy is found to have been missold they must refund the premiums paid and any interest charged ON those premiums - normally to the loan account. At any time where this results in a positive balance they must pay 8% simple interest on that balance.

However, they can deduct any payment made as a result of a successful claim at the time it was paid when in their calculation, again with interest adjustments. If this results in a negative redress figure, no redress is paid (but they cannot send you a bill for the amount you gained).