PPI Success, or so we thought! Question?

FatDad

We made a claim for the PPI we did not want on a store card from a Scandanavian flat-pack furniture company using your template letter and the FOS paperwork, and were made an offer which included 8% statutory interest, RESULT!

Their letter said "We have considered your request and on this occasion we are prepared to offer a 100% refund of the premiums applied to your account to date."

They have not made a refund, instead they have credited the store card account by the offered amount.

Question: Can they do this?

Many thanks 8-)

dilus

FatDad wrote: »

We made a claim for the PPI we did not want on a store card from a Scandanavian flat-pack furniture company using your template letter and the FOS paperwork, and were made an offer which included 8% statutory interest, RESULT!

Their letter said "We have considered your request and on this occasion we are prepared to offer a 100% refund of the premiums applied to your account to date."

They have not made a refund, instead they have credited the store card account by the offered amount.

Question: Can they do this?

Many thanks 8-)

Hi FatDad, I am not 100% sure but I would have said, yes IF there was an outstanding balance on the card. If not then it's a bl***y cheek. It means you can only spend the redress in the store!!!!!!!
If there was no outstanding balance I would question this strongly

dunstonh

It is not uncommon for it to be done this way as effectively they are refunding in the same way as a retailer refund goes back on the same card.

You dont have to spend the money in store. You can ask for the amount it has put you back into credit to be returned to you by cheque. You can do this via their normal contact centre.

FatDad

Many thanks for your replies.

The account is not in any arrears and is paid on time all the time.

My thoughts were that the refund, as they call it, should be to the source of the payment ie. our bank account. Their payment would be comparable to a credit note for a store purchase.

We will phone them in the next few days and ask for a payment to the source account or to us by means of a cheque.

I will let you know how we get on.

Cheers,

Mark 8-)

FatDad

We phoned the customer service number last night and were told that someone had been looking at our account that morning, and that the refund to the card account was an error that had been rectified and we should expect a cheque in the next 2 weeks.

Looks to us like someone within their organisation is a Moneysavingexpert forum reader!!!!!

Cheers 8-)

dilus

FatDad wrote: »

We phoned the customer service number last night and were told that someone had been looking at our account that morning, and that the refund to the card account was an error that had been rectified and we should expect a cheque in the next 2 weeks.

Looks to us like someone within their organisation is a Moneysavingexpert forum reader!!!!!

Cheers 8-)

Great result FatDad :T, thanks dunstonh for the advice