DMP & PPI Payment!

Iloveprettythings

Hiya

I wondered if anyone can help.

Basically I have a DMP and was recently sent a letter from NatWest who I have a loan with which is in the DMP stating that I may have been missold PPI and did I want them to check for this.

I sent a form back saying yes I would be willing for them to check it for me.

Today I have received a letter from them saying I am owed a whopping £9000 back BUT this money is going to be used to go towards my debt.

Don't get me wrong I am so happy I will be £9000 less in debt BUT I am skint and struggling and yet I could have £9k in the bank!!!

Is there any way I can at least claim some of this money even just £2k or £3k because even this amount of money would help me a great deal.

I just wondered???

any advice would be greatly appreciated. I have not sent the forms back yet saying I agree to this.

I know it sounds like I just want the money and not pay my debts back but its not like that its just even a fraction of the money would help me so much.

My house is in a bad state of repair and needs a lot of work doing and this would help me so much!


Thanks

datlex

I suspect this falls into the same trap as they can use the money in your savings or current account against your debts if you bank with same place have problem debts with (affordable bank loan/mortgage slightly different)

tking

I'm not 100% sure but if you owe more than the PPI claim amount to Natwest for money you have borrowed from them, then they can use all the PPI claim to offset the debt. If you owe Natwest less than the full amount I imagine you may be able to clear their debt in full and then get hold of the remaining amount.

I'm not certain though - hopefully someone with more knowledge will be along soon.

GibbsRule_No3

I had PPI back from HSBC, I also had a loan with them. So yes, they used part of the PPI to clear their debt in full and I received the remainder. If your debt is more than the PPI I think they will keep all of it.

beth3735

I had PPI back from Lloyds Credit card while i still owed them on it too.
I had a letter saying you will get so and so amount, would you rather it was paid to the credit card debt, or if you would prefer it to be paid into a bank account please let us have those details.

As this card was in my name but a family members debt i decided to make the choice and have it paid off the debt. Seemed no point in having it paid into said family members bank and still owe it on the card.

Worth a call and see what they can do.

MoKa_2

Remember they will also need to pay 8% interest on any award to put you back in the same financial position that you would have been in if you hadn't been missold the PPI. Tell them you're fine with the repayment being allocated to their balance, but that the interest should come direct to you.

TakingControl

They are allowed to use all of the refunded premiums to offset against your debt. However the 8% interest for the premiums has to come to you but please bare in mind, that you need to pay tax on this to HMRC

roofio86

Thanks for this post! I just received the same from MBNA
I did think the questionnaire might have been some scam to get my details but after seeing this thread, I understand why they would have sent me this out of the blue without me initiating a PP claim myself.

Iloveprettythings

Thanks for all your advice,

I rang Natwest to say that I think I should be able to keep some of they money because the PPI amount is over half of what I actually owe Natwest, My loan was £15000 the PPI itself is £9000 I would not have got into debt and needed a debt plan if I would not have been missold the PPI...that will be my argument.

Natwest advised me to go to a branch to discuss which I will be doing!

jessie4109

how long did it take from getting the 1st letter through the post to receiving a response about your ppi?

Iloveprettythings

jessie4109 wrote: »

how long did it take from getting the 1st letter through the post to receiving a response about your ppi?

About 5-6 weeks!