Offsetting PPI compensation against credit card balance

Highestrichelle

Hi all,

After FOS found in my favour on my PPI complaint against barclaycard (formerly a Morgan Stanley card) I was awaiting a letter from barclaycard with their offer.

Today, when checking the credit card balance it appears that barclaycard have paid what looks like the compensation amount (close to my estimate) to my credit card account, resulting in a small credit.

The credit card balance was over the agreed limit at the time.

Is it standard practice for the redress to be paid to the credit card account or do I have a choice - I would rather pay off other debts with higher APRs.

I may be jumping the gun a bit here, the transactions are dated 30 December but as yet I have not received anything in writing from barclaycard.

Any guidance would be greatly appreciated.

maggy50

Well done on your success .
Could you tell me what date the FOS notified you.?
And how long did you wait ?
I am not sure about why they paid back to your card surely they should have written to advise but we are talking about Barclays.

Highestrichelle

maggy50 wrote: »

Well done on your success .
Could you tell me what date the FOS notified you.?
And how long did you wait ?
I am not sure about why they paid back to your card surely they should have written to advise but we are talking about Barclays.

Thanks Maggy. My letter from FOS was dated 14 November 2013, so they appear to have responded within the 8 week period mentioned by FOS.

I will wait for a letter from Barclaycard explaining themselves.

Insider101

Under normal circumstances, they would probably be perfectly happy to pay you the money directly rather than pay off your balance. They want you to owe money on th card, because whilst you do they're earning interest on your debt. But if you're over your limit or not making agreed payments then they may decide they want to keep the redress. Technically, as with most unsecured borrowing, your debt will be repayable on demand. Hence there's probably not much that can be done about it. Unless you can persuade FOS that you're in serious financial hardship.

dunstonh

Is it standard practice for the redress to be paid to the credit card account or do I have a choice - I would rather pay off other debts with higher APRs.

Yes, it is normal to apply it to the card and then if you are not in arrears or over limit, they will debit it out again a few days later and issue you with a cheque.

Highestrichelle

dunstonh wrote: »

Yes, it is normal to apply it to the card and then if you are not in arrears or over limit, they will debit it out again a few days later and issue you with a cheque.

Thanks Dunstonh. Just as you said, the account has now been debited with the same amount. I look forward to a cheque in the post in the coming days (fingers crossed).

Highestrichelle

To conclude all of this I have recieved a cheque for c£5,400 in the post. All done after about a year with FOS.