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PPI refund and arrears

abetterfutureahead
abetterfutureahead Posts: 30 Forumite
PPI Party Pooper
edited 30 April 2012 at 8:18AM in Bankruptcy & living with it
I applied for a refund of PPI on a really old loan that I paid off several years ago. I wasn't expecting to receive anything, Well beleive it or not I received a letter offering me just short of £1000 :T
On the acceptance form it says

" I/we understand that you will use part or all of the refund to repay any arrears that are due at the time the payment is made "
My question is, although I paid this loan off in full I have an outstanding loan which is in default of aprox £600. Will the PPI refund go towards this loan.

I just want to add I'm planning on going bankrupt very soon

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