Advise please after P.P.I offer by Bank

Bigbear101

Hi all,

I'm new to this so please be patient, My Dad asked Clydesdale bank to return his P.P.I payments from his old Credit card and after much time they agreed they owed him over £2500 but as he was in trouble with his card payments they were giving the £2500 to the Debt Collector who is chasing Dad for the debt.
Can they legally do this?
What would be my Dad's next move?

Bigbear.

dunstonh

Can they legally do this?

yes. It is logical as well as he effectively hasnt paid the PPI. He is in default. So, they are effectively offsetting the two amounts, which they are allowed to do where there are arrears, defaults or amounts written off.

What would be my Dad's next move?

Be happy that his debt has reduced by £2500.

Bigbear101

dunstonh.

The £2500 was paid to the p.p.i. through the Years of Monthly payments, some Months the p.p.i payments alone were over £80, but I was told the Credit card and the p.p.i. agreement were 2 entirely seperate things and that the p.p.i. payments were to be refunded.

Bigbear.

magpiecottage

Bigbear101 wrote: »

I was told the Credit card and the p.p.i. agreement were 2 entirely seperate things and that the p.p.i. payments were to be refunded.

They are but the point is that on the one had the bank owes your Dad £2,500 but on the other he owes them money that he has not paid (that is why they have referred it to a debt collector).

So the bank has already given money to your Dad which he has failed to pay back. Now they know they owe him money they are entitled to use that money to reduce or repay what he owes them.

If there is anything left over he will get it.