PPi payout but bank has robbed me!😧

Pastyman1

Hi, looking for a bit of advice, I have recently successfully claimed back ppi on some old loans, great I thought, until I received the letter informing me that they were keeping the lions share of it to settle an old loan that I had with them that was part of a DMP.

The issue I have with it is that I settled with all my creditors in 2008, and successfully settled with this loan account, paid my full and final settlement payment, so how can they now take it from me?? If its settled its settled surely? They have deducted the exact difference between the amount I settled and the original outstanding amount, thus clearing the loan in full.

I thought that once you had settled that was the end of it, but clearly not!

Has anyone else experienced this? Should I go back to them and argue the point as its £3700 that they have withheld.

Many thanks in advance!

[Deleted User]

Pastyman1 wrote: »

I thought that once you had settled that was the end of it, but clearly not!

Yes, once you have settled, the Bank agrees not to chase you for the remainder of the debt. However, if you then go and complain about mis-sold PPI then you are allowing the Bank to offset any redress awarded.
http://www.moneysavingexpert.com/banking/setting-off

The Bank have not "robbed" you; they are just claiming back the money that is rightfully theirs. Money you failed to pay in the first place.

Sorry.

_Andy_

Surely you 'robbed' them to begin with by not paying back all the money you owed.

dunstonh

PPi payout but bank has robbed me

Based on what you have said, you were trying to rob the bank.

so how can they now take it from me?

Easily. You never paid the debt. So, to expect them to refund you something you never paid is pushing it. The bank is allowed to set off the redress payment against any debt in arrears, default or had amounts written off as part of a settlement.

If its settled its settled surely?

The settlement did not see them get their money. It was an agreement not to use the courts to come after you for the money you owed. On paper, you still owed the money. It was just agreed not to come after you for it.

Has anyone else experienced this?

Yes. It is quite common for people in the same situation.

Should I go back to them and argue the point as its £3700 that they have withheld.

No. They are acting correctly.

Cash_Flow

I can not believe the cheek of some people.

custardy

Pastyman1

Hi, thanks for your responses, the reason I posted was to get advice to try to better understand how the system works, as I don't understand how it works!

My question was based in the fact that I thought I had settled it for good and didn't think they could do what they did, but if that's how it works then fair do's, I didn't pay them back in full so I guess it's karma!

The amount I owed when I settled with them was £5900, but this figure included the ppi, should they not recalculate the loan removing all the ppi to get the true amount owed? I could be totally wrong but that's how I looking at it!

Thanks again

custardy

Pastyman1 wrote: »

Hi, thanks for your responses, the reason I posted was to get advice to try to better understand how the system works, as I don't understand how it works!

My question was based in the fact that I thought I had settled it for good and didn't think they could do what they did, but if that's how it works then fair do's, I didn't pay them back in full so I guess it's karma!

The amount I owed when I settled with them was £5900, but this figure included the ppi, should they not recalculate the loan removing all the ppi to get the true amount owed? I could be totally wrong but that's how I looking at it!

Thanks again

you didnt pay the full loan back
what part dont you understand?

amersall

The amount I owed when I settled with them was £5900, but this figure included the ppi, should they not recalculate the loan removing all the ppi to get the true amount owed? I could be totally wrong but that's how I looking at it!

Did you claim mis sell for the loan that was in the DMP? if you did, they should have reset the original loan without the PPI, this should have brought the balance down, ask them to look into this, just because the loan went to a DMP I don't think they would have reduced the balance by the PPI.

Pastyman1

amersall wrote: »

Did you claim mis sell for the loan that was in the DMP? if you did, they should have reset the original loan without the PPI, this should have brought the balance down, ask them to look into this, just because the loan went to a DMP I don't think they would have reduced the balance by the PPI.

Hi, yes the ppi I have claimed is from a 3 loan chain that I had and I defaulted on the last loan, entered into a DMP and then settled it in 2008. Now they have cleared the full outstanding balance on the loan using the ppi claim, but surely the balance outstanding should have been much lover had they recalculated what the loan would have been without the ppi and then minus the payments I made against it. Surely that would give a different outstanding balance to be cleared?

[Deleted User]

Pastyman1 wrote: »

Surely that would give a different outstanding balance to be cleared?

If £5,900 was written off and they are offsetting to the tune of only £3,700, seems to me you are still "quids in".

I don't even know why you are still debating it...