PPI refund - where is it paid to?

hayleyc87

I have been offered a ppi refund by rbs. They quote is in two figures - ppi refund of £1200 and interest of £163.

I am on a DMP plan so the account is in arrears. The letter advises that the refund will go towards any outstanding balance - what I was wondering, is does this include the interest aswell or should I get that paid in a cheque to me since its interest on money I shouldn't have paid out to start with? I rang the bank but couldn't seem to get a straight answer from anyone!

Thanks in advance for any help/advice

amersall

hayleyc87 wrote: »

I have been offered a ppi refund by rbs. They quote is in two figures - ppi refund of £1200 and interest of £163.

I am on a DMP plan so the account is in arrears. The letter advises that the refund will go towards any outstanding balance - what I was wondering, is does this include the interest aswell or should I get that paid in a cheque to me since its interest on money I shouldn't have paid out to start with? I rang the bank but couldn't seem to get a straight answer from anyone!

Thanks in advance for any help/advice

You get the 8% amount to you, this is taxable if the bank has not taken this off before they give it to you, you should ring HMRC and ask what you need to pay.

hayleyc87

thanks for reply - the £163 has already had tax deducted, was 200 and odd before so hopefully I will receive the cheque for that. Thanks again, was just looking for some clarity since the bank wasn't much help