Cap One LPI and my bank details

Moneymash

I have had my complaint about my Cap one Loan protection insurance upheld and they have sent me a letter confirming the refund and the breakdown.
The terms of the original loan are as follows
Loan £5000, APR 7.9, term 36 months, Loan Protection £863.78, amount of interest £714.86, total amount payable £6578.64, monthly payments of £182.74.

I have been offered £1440.75, premiums and interest of £969.12 and additional interest of £471.63.

At the bottom of the letter there are headings and blank spaces for Bank Account number, bank sort code, Name as appears on account and Name of Bank.

A week ago I had a successful complaint upheld for my Cap on credit card PPI. The amount was £236.00. However, as I eventually defaulted on the credit card, when I got my settlement letter it said it would offset the £236.00 against my default amount, anything left over would be sent to me via cheque. However as my default amount was higher than £236.00 I was obviously expecting the full £236.00 to go towards the defaulted balance which is fine by me.

I am wondering why Cap one haven't done the same with the settlement they are offering for the Loan protection insurance. It would appear that they want to transfer the money directly to my bank account. Has anyone had experience of this?

amersall

If the loan was not in arrears then they are giving you this back, if the loan was in arrears, I would take the money and run!!.

Moneymash

The loan was not in arrears the monthly payments were made and completed.

I was just wondering why the Cap one CC PPI refund was offset against my Cap One CC defaulted balance and not the LPI refund. Is it because they are different products?

Had the Cap One CC PPI refund not been offset they would have sent me a cheque. However for the LPI refund they want to put it straight into my bank account. I am not complaining I will gladly take the money I just wanted to know if it's normal practice.

amersall

It depends who is dealing with this complaint, it is also possible that as they are separate products they have not found the link yet.
Take it if they give it you, and congrats on both wins!.

Moneymash

Thanks amersall. Yes I will sign the offer letter tomorrow and post recorded delivery. I intend to pay off the outstanding default balance with the settlement anyway. It'll be one less debt to have to deal with.

amersall

You are very welcome x.