Another Success : Lloyds TSB PPI - but i've got a question...

sussexking

After succesfully getting PPI on my wifes MBNA (£1.2k), My Egg Loan (£4k) - i've just received notification from Lloyds TSB of a successful PPI claim amounting to about £3.8k.

Now they have said they are going to send me a cheque....

But I owe Lloyds TSB (now a debt recovery company - because they've transferred the debt) about £9k....

Should I use that £3.8k on reducing the debt I owe (where I am paying an amount with a 0% interest)... Will the debt recovery company come chasing me for it ? - or is it no longer Lloyds interest, so they won't tell them!!...

Therefore can I use the money to pay off smaller debts i've got elsewhere and maybe finally have a decent holiday next year...

Any advice or comments welcome.

Cheers

SK!:)

dunstonh

Now they have said they are going to send me a cheque....

Dont count on it just yet. The standard letter has a habit of saying that only to be followed up by another saying it will be paid to cover arrears, defaults or amounts written off. It can also depend on the relationship of the collections team and the bank. If it is an unlinked company then you should get the cheque.

Should I use that £3.8k on reducing the debt I owe (where I am paying an amount with a 0% interest)... Will the debt recovery company come chasing me for it ? - or is it no longer Lloyds interest, so they won't tell them!!...

Clearing the most expensive debts should be the objective first.

and maybe finally have a decent holiday next year...

Is a holiday a good idea when you still have £9k of debts with a collection agency?

sussexking

thank you Dunstonh for your response on this...

The letter I had did say that my account had been passed to "recoveries" - and later on said they would send me a cheque... nothing on it to say, that I need to pass the cheque onto the third party they sold the debt too....

Well that was my idea - was to pay the most expensive debts off (but this isn't necessarily my most expensive one) - so I'll hold on to the money in an account for 30 days and then if the third party debt management company don't ask for it - i'll use it to pay other debts off...

I think i'm owed a break!!!.... I unfortunately racked up debts of £70k back in 2004.... and have been on a debt management plan paying what I can every month since... I've now got my total debt down to around £35k.... I've done this by working hard with two jobs and doing long hours to pay this back... with little holiday... don't I deserve a break ??



Merry Christmas!!

tifo

if the cheque comes to you then you're free to do what you like with it.

but usually banks send the refund to a debt collection agency if they've sold the account but you might get lucky and receive it.