ppi kept by bank

johnboyq

my bank kept almost half of my ppi claim to settle an outstanding bank loan, however we were in a payment plan with a debt management company and feel all funds should have been paid to them to share amongst our other debts?

-taff

Doesn't matter what you feel, the bank can keep any portion of redress to cover amounts in arrears, or written off in your case.

antrobus

johnboyq wrote: »

my bank kept almost half of my ppi claim to settle an outstanding bank loan, however we were in a payment plan with a debt management company and feel all funds should have been paid to them to share amongst our other debts?

What difference does it make? You still owe the same amount in total.

dunstonh

If you are in arrears, defaulted or had amounts written off, the lender can use the redress against the unpaid debt.

So, what they have done is in line with rules. However, at least it reduces your debt.

johnboyq

Thanks for your replies, however you seem to think I was trying to avoid paying my debts. This is not the case and if you are all lucky enough not to be in the same position as me then I applaud you in the current financial position. I am in debt and not trying to avoid paying all I owe back or indeed trying to have it written off, I intend to pay every penny, I just thought that as my bank had in effect contributed to my debt by insisting I took PPI in the first place thus enlarging my debt that they should have paid all the refund to my debt management team who are a charity and do not take a fee so that others who have been understanding and worked with us could have had their share and the debt to them also reduced.

antrobus

johnboyq wrote: »

Thanks for your replies, however you seem to think I was trying to avoid paying my debts. ...

Sorry no, I don't see anybody saying that at all.

Insider101

johnboyq wrote: »

Thanks for your replies, however you seem to think I was trying to avoid paying my debts. This is not the case and if you are all lucky enough not to be in the same position as me then I applaud you in the current financial position. I am in debt and not trying to avoid paying all I owe back or indeed trying to have it written off, I intend to pay every penny, I just thought that as my bank had in effect contributed to my debt by insisting I took PPI in the first place thus enlarging my debt that they should have paid all the refund to my debt management team who are a charity and do not take a fee so that others who have been understanding and worked with us could have had their share and the debt to them also reduced.

If they uphold your complaint, they are required to put you back in the same position you would have been if you had never had the PPI in the first place. That's effectively what they have done by taking it from your debt.

As per one of the comments earlier, it is minor in the scheme of things, you still owe the same amount either way.