help please! PPI held against credit card charges

learningtoberesponsible

Help! I have recently been awarded some PPI from a loan I had many years ago. This was a nice suprise as I didnt even know I had PPI in the first place! Unfortunately, not long after repaying my loan, my bank offered me a credit card, which I did use. Not being very financially aware, I only made minimum repayments & my credit card bill continued to grow & grow till the point when I could nolonger keep up the minimum repayments. I did go to my bank on a number of occasions to see if I could get a loan to repay the cc bill but they would not allow this. Eventually I couldnt pay any more & some time after that my bank eventually capped the credit card & sent it to a debt collector. The bill had then reached £6500 by that point. Original limit on the card was £2000 but the bank continued to extend my limit. I know I deffinately didnt spend that much but an now realising it was the interest which bumped it up. My question is, can I complain to my bank for the unfair interest on the cc & see if I can get the bill reduced? I am happy to use my PPI to wipe out the debt but my bank currently says I cant do this? I feel this is unfair as they willingly let my credit card continue even though I was in difficulties & visited them for advice.

dunstonh

My question is, can I complain to my bank for the unfair interest on the cc & see if I can get the bill reduced?

No. Interest is not unfair. Its a fact of life. I mean you can complain, that is your choice but your reason is not correct.

I am happy to use my PPI to wipe out the debt but my bank currently says I cant do this? I feel this is unfair as they willingly let my credit card continue even though I was in difficulties & visited them for advice.

I would have thought it logical for the bank to set off the redress payment against your total debt. if they decide to pay you directly then nothing stops you making the payment yourself towards the debt.

ALIBOBSY

It is likely from what you say that the debt was fully sold on to the debt collectors. In that case the "laws of offset" which is what the banks use to claim any PPI refunds against accounts cannot apply as the money cannot be paid to a third party ie. the debt collector.

Are you in the process of making payments against this with the debt collectors?

Your best bet maybe to negotiate a full and final settlement with the debt collector.

BTW I'll bet a big part of that credit card debt was charges so whilst the interest is something you can't do anything about you can claim the charges in the same way you claim the PPI premiums back via the FOS.

Then you could use the 2 payments to either clear the debt or make a full and final to the debt collectors to get it settled once and for all.

Ali x