RBS Refund money from old loan used to pay existing loan

Tfuuk

Morning all,

I've had a chain of loans with Natwest, 11 in total, going back to 2001. PPI has been applied to these loans rather sporadically (I was completely unaware that any of them had PPI) so a complaint was made and has been upheld, and I was advised that they would be investigated individually.

I now have 9 separate offer letters for each of these loans that had PPI, totalling £9k, including a small offer for a loan I took out in April of this year which is still running. I have been advised by RBS that they will use the entire amount to restructure the existing loan and that I won't see a penny of it in cash.

According to well informed family members, they cannot do this, so I spoke to the FOS for confirmation. Whilst I don't pretend to understand it all, the FOS seemed to be suggesting that I should get the offer money for the historical loans paid to me directly, but that the offer for the existing loan would be used to restructure it. Is this correct, or can RBS use the total amount to restructure the existing loan and I'd not see a penny? I am not complaining, but as I am currently moving house, the cash would be really handy :-)

Thanks

dunstonh

The FOS position is the correct one.

The only exception is if you have arrears, defaults or an amount written off as part of a settlement. In those cases, they can use the redress against the debt.

Tfuuk

Thanks, called RBS back to clarify this and spoke to an agent who knew his business and confirmed the above was accurate.

Thanks again Dunstonh