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Offer from RBS

Dear All

I have had an offer from RBS for refund of PPI repayments made in 2001 - 2003. They have said they will off set the redress against my debt (which is substantially higher than my PPI refund offered). I am in arrears due to loss of income in the last couple of years and so whilst I am content with this outcome, I also have debts with Council Tax and would prefer to use this money to repay this as it is a priority debt. I have heard that FSA have said banks cannot treat themselves as a priority creditor for refund of PPI re-claims. Is anyone aware of anything around this, as I would like to know what the rules are before I accept.

Many thanks.

NNOP

Comments

  • financial_ombudsman_representative
    financial_ombudsman_representative Posts: 94 Organisation Representative
    Hello NNOP72

    I work for the Financial Ombudsman Service - the free service set up by law with the power to sort out problems between consumers and financial businesses. Depending on the terms and conditions of your account, it is sometimes ok for a bank to use the PPI compensation to offset other debts you have with them. But if you have other more pressing debts elsewhere, this may not be the right approach. You may want to alert RBS to your council tax debt. If you're still unhappy with their response and want to complain, you can contact the ombudsman on 0300 123 9 123. If you're worried about your debts more generally you can contact the consumer credit counselling service (CCCS) - who provide free debt advice - on 0800 138 111.

    Fiona
  • nnop72
    nnop72 Posts: 56 Forumite
    thanks Fiona, I have written back to RBS and will see what their answer is,
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