Halifax paid off my loan not given me the money

Tro_2

Hi, I have a loan with the halifax and when I checked my internet banking this morning I had roughly £5200 left to pay on it. I had recieved a new loan pack which was for the loan minus the PPI which I signed and sent off on Monday. This would take the loan down to £4290.

I then phoned the halifax for an update and they confirmed my complaint has been upheld and they were offering me a settlement of £3100. Which is great! But, I have just checked my internet banking again now and the outstanding loan has gone down to £990.

I was under the impression that I would recieve the money in the form of a cheque not by them just paying off the loan. Its not in arrears. Any ideas why this has happened? Many thanks

wr1ght

the way it works with halifax credit cards is they reduce the balance by the refund amount then they issue a cheque and the balance returns to what it was previously not sure if its the same for loans

magpiecottage

They will have put you into the position you would have been in had you not taken out the PPI. This means they have reduced the capital on your loan accordingly.

It seems they have assumed you would have paid the same amount each month and so the loan amount would have fallen faster.

In theory, you could argue that you would instead have kept the money. However that would mean a higher debt remaining. They would pay you interest on the money "saved" each month but it would be taxable. This would probably work to the advantage of the tax man at your expense.

amersall

If i were you,i would ring them and get them to explain what they have done and why.
You should have had ppi you paid to date back to you.

Had you not had ppi on this loan from the outset,the balance at this stage would have been the balance that was on the new agreement at the rate of the old loan without ppi.

Tro_2

Hi, thank you for the replies. I have just spoken to then and they confirmed that my new balance on the loan is £990 plus I will be recieving a cheque shortly for £3105.42. Does this seem right? Im cautiously excited and pleased!