refund will be offset what does this mean

peachs2008

Hi

Got a letter stating I was getting refund from cap 1 for my PPI but it would be offset against any over limit or defaulted balance

can some one explain what this really means don't want to end up with nothing

dunstonh

If your account is in arrears, defaults or had amounts written off then the redress payment can be used against that rather than being paid to you as cash in hand.

e..g. if your credit card limit is £2000 and you are over limit with say £3000 then they can use the redress to reduce your debt with them rather than sending the money to you.

[Deleted User]

peachs2008 wrote: »

can some one explain what this really means don't want to end up with nothing

It means that if the credit card you were complaining about has defaulted or is in arrears, the Bank intends to use the PPI refund awarded to pay off this outstanding amount.

Any money (if any) left after this is done will come to you.

Here's a link to the off setting rules;
http://www.moneysavingexpert.com/banking/setting-off

peachs2008

so with my understanding my account is open and i can still use it i am not over my limit but have had defaulted payments from time to time

so I take it I will get the full amount which they have quoted

[Deleted User]

peachs2008 wrote: »

have had defaulted payments from time to time

The bank are saying they will off set against defaulted payments, so it's by no means certain you'll receive the full amount at all. You'll have to wait for the Bank...