PPI Refunds and the Banks right of Set Off

Caladan

I am somewhat reluctant to post this, as I feel many PPI claims are absolute nonsense and it's just people jumping on the bandwagon, however on balance and in view of the fact this forum is to help people I've decided to do it anyway (besides which it's public information and someone has probably done it already and I just like sounding like I know stuff ).

The article I've linked below is an FOS decision based on a bank paying off a customers debts with a PPI refund. It makes for interesting reading and may help people who are expecting a refund and have debts outside of the company refunding them.

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=5623

Hope it helps,
Cal

dunstonh

HSBC were trying it on there. Its known that the set off only applies to the linked debt. Not others.

magpiecottage

I think this case was unusual in that the Ombudsman actually allowed it on the basis that there were other debts that had to be met. Had that not been the case, the bank's position would have been far stronger.

In addition, the bank relied on its own terms and conditions, rather than the Insolvency Act to enforce the set off.

If the bank had been able to show it was reasonable to suppose that, without set off, it would never get all its money back, it would again have a stronger position.