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Help understanding halifax PPI letter

Hi,

I wonder if anyone can help me, I received a letter from halifax regarding my PPI complaint on an active loan. I have had the complaint up held.

They are refunding premiums of £3185.18, Refund of the interest £1947.22, Interest of £962.03 (caculated up to 28th June 2012) and excess balance of £1325.89= £7420.32 refund total. The letter then goes on to say that they will set up a new loan without PPI and that will have a balance of £8593.

My question is do they use the total of £7420.32 to reduce the existing loan or just the premiums and interest part of it? The letter states that ''we have caculated the balance on your new loan by taking the outstanding balance on your current loan account (£12,500 includes int.) and reduced this by the amount of your orginial PPI premium (£5574.06), less the additional premiums that have been included in our offer above''

Basically do I get any money back or do they put the whole lot towards reducing the current loan?

This is my first time using a forum

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