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Lloyds Debt & PPI refund
bluemonday3
Posts: 236 Forumite
Hi
I will try to keep this short! I recently received a refund of PPI from Lloyds TSB. Was very surprised as I am in a DMP with Stepchange and owe them £1900 on a current account overdraft & £1200 on CC.
I spoke to their representative and they said I could settle the overdraft for the value of the refund, £1255. I was told they would close the account and the settlement offer sent by letter.
On receipt of the letter I was to ring up and pay over the phone.
The letter never came, so I banked the money and sat tight.
Fast forward a month and my car finally died and I felt no other choice but to use the money to buy another one. I need my car for work.
I received a text from Lloyds yesterday asking me to ring them as my payment was overdue.
Please can some one offer some advice... Do I inform them of what I had to do or do I sit tight to see what action they may take.
Lloyds have been my most difficult creditor and have been hassling me since the DMP started 3 years ago.
I am committed to repaying all debt and actually looked forward to getting them off my back but I felt I had no choice but to use the money for what I felt was an essential need.
The PPI was on a couple of old loans so I think that is why I received it though it was always my understanding that they would keep any refund towards my outstanding debt.
I would appreciate any advice please.
I will try to keep this short! I recently received a refund of PPI from Lloyds TSB. Was very surprised as I am in a DMP with Stepchange and owe them £1900 on a current account overdraft & £1200 on CC.
I spoke to their representative and they said I could settle the overdraft for the value of the refund, £1255. I was told they would close the account and the settlement offer sent by letter.
On receipt of the letter I was to ring up and pay over the phone.
The letter never came, so I banked the money and sat tight.
Fast forward a month and my car finally died and I felt no other choice but to use the money to buy another one. I need my car for work.
I received a text from Lloyds yesterday asking me to ring them as my payment was overdue.
Please can some one offer some advice... Do I inform them of what I had to do or do I sit tight to see what action they may take.
Lloyds have been my most difficult creditor and have been hassling me since the DMP started 3 years ago.
I am committed to repaying all debt and actually looked forward to getting them off my back but I felt I had no choice but to use the money for what I felt was an essential need.
The PPI was on a couple of old loans so I think that is why I received it though it was always my understanding that they would keep any refund towards my outstanding debt.
I would appreciate any advice please.
0
Comments
-
They don't have to accept a full and final offer and you don't have to make one.
Surprised they didn't just put the PPI money towards one of the accounts.
Maybe ask Stepchange what they think?:beer:0 -
thanks for your reply, I agree thought they would never have sent me the actual money!!0
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