PPI payment offer but arrears query

Glitteryfish

Got a letter this morning from RBS offering me a payout of just under £5k of which £1.3k is interest. The letter says however that the payout will be made subject to any arrears with The Group. Thing is although the loan in question is all paid off I do have arrears on another loan with them taken out a few years ago. I'm clutching at straws here I realise, but the debt is no longer owned by RBS (I have an arrangement with Arden Credit Managenent who they sold the debt to). I know reducing my loan balance would be a good thing but do you think I have any chance at all of getting the payment directly without it all being sucked into my black hole of debt or does a debt being sold off mean nothing?

jdwmfc

Glitteryfish wrote: »

Got a letter this morning from RBS offering me a payout of just under £5k of which £1.3k is interest. The letter says however that the payout will be made subject to any arrears with The Group. Thing is although the loan in question is all paid off I do have arrears on another loan with them taken out a few years ago. I'm clutching at straws here I realise, but the debt is no longer owned by RBS (I have an arrangement with Arden Credit Managenent who they sold the debt to). I know reducing my loan balance would be a good thing but do you think I have any chance at all of getting the payment directly without it all being sucked into my black hole of debt or does a debt being sold off mean nothing?

I am under the impression that monies gained this way will be used to pay your debts first.
Technically as you are claiming on a debt now owned by someone else they will expect the redress. However if you had front loaded PPI this will reduce your overall debt first before the payment is given.

Glitteryfish

Darn it I knew it was too perfect when I recieved the letter this morning - we really need to get a reliable car and the £5k would have been a dream come true. Never mind though at least £5k is probably going to be knocked off my loan - only £23k to go :eek:

jdwmfc

Hey look at my signature, i was almost £40,000 in debt in Jan 2011.
Now halved and hopefully gone by next year, it is possible and every penny counts. good luck