Reclaim PPI

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
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edders1946edders1946 Forumite
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edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Last year i was succesfull claiming back PPI from LTSB Bank.They agreed to pay me £5722-38. Then they only paid me £862-85 into my bank account. Then the bank confirmed to me in writing they had paid the rest £4859-53 to there consumer debt recovery department to clear arrears on my account. Whilst i had 2 loans with them i went into an IVA which they agreed to. Three years into the IVA I completed it when i remortgaged my house and all the companies i owed money to agreed to the settlement figure put to them by my insolvancy practioner. (The IVA should have run for 5 years ). Does any body know if the bank can legally do this as they were part of an agreed IVA settlement figure in 2005

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  • dunstonhdunstonh Forumite
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    Does any body know if the bank can legally do this as they were part of an agreed IVA settlement figure in 2005

    The bank is allowed to use any redress to cover any debt in arrears, defaults or amount written off. What it sounds like here is that a lower amount was accepted as a settlement resulting in the rest being written off. Hence why they can then use the redress to clear that amount written off.

    It is quite logical. After all, you effectively didnt pay all the PPI premium as you defaulted. So, it would be wrong for you to then be paid all the PPI premium back.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ALIBOBSYALIBOBSY Forumite
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    I and many others on other forums disagree with Dunstons assesment on this area.
    The FOS guidence is clear the banks are using and applying their "rights of offset". Whilst there is an arguement regarding whether this applies in the case of PPI (and someone over on CAG did win a case regarding this-but only small claims so not setting a precedent), setting that aside the offset rules and guidence are clear.
    The offset can only apply on "live" accounts, most both be held by the original lender and only notified arrears can be held against the refund-it does not cover amounts written off.

    If they accepted a full and final amount (and they stated this in writing and you still have it) it will be worth a written challenge.

    However I do think the FOS may accept some of what Dunston argues in that they would accept the PPI refund should only be based on the premiums paid, plus interest, plus the 8%.

    Not as clear cut as the banks would argue and always worth challenging.

    Ali x
    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • ALIBOBSYALIBOBSY Forumite
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    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • dunstonhdunstonh Forumite
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    I and many others on other forums disagree with Dunstons assesment on this area.

    Its not so much disagreeing but different scenarios. When sold on to to third party then the bank shouldnt do it. However, in this case it reads as if no third party was involved.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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