Santander - Paying PPI Refund to Debt Collection Agency

EmilyPost

Hello - Santander wrote to me recently about claiming back mis-sold PPI from an old Abbey loan, having returned the forms I've now received an offer of a refund. The letter clearly states this will be paid back against any arrears which I have (it is a standard letter) - I have had debt problems for some years due to a family illness and reduced finances and I'm currently in a debt management scheme. It appears however that Santander passed the debt to Connaught Collections years ago and that is who I have been paying off as part of my repayment scheme. I would prefer to receive the money to go into my account so I can spread the amount across all my debtors but I'm not sure what the situation is here? Can they pay this straight in to the collection agency's account without my permission? Am I entitled to the interest? Is it worth entering in to a negotiation with them, I did pay this money even if the account did fall into arrears, if I hadn't had to pay the extra this may have helped me at the time. Thoughts gratefully received!

amersall

They are allowed to take the redress for money you owe them.
You should get the 8% to you though and this is taxable.

For more help with this, post here
http://forums.moneysavingexpert.com/forumdisplay.php?f=159

They have more knowledge regarding this and what you can do.