PPI refund

natethefathead

Hi all


Currently on HB and getting ESA for myself.... Today I've had a letter from the a credit card company advise me that they are refunding PPI due to me and they that already work deducted a certain amount for the tax man and are in the process of sending me out a cheque, I did phone them today and ask if they could clear my outstanding balance on my CC which they cannot do...Cant see why but hey.... The amount due is about 10k but my CC is about 7K so end of the day I'm left with 3K.. should I be contacting the DWP ?

Mersey_2

No need, essentially net assets are what you need to worry about.

rogerblack

Err - no.
Assets for ESA are _NOT_ capital - debts.
They're capital - immediately repayable debts.
If you have 10K, and 7K debt on a credit card that's not in default, then you have 10K, not 3K.

If on contributory ESA, it will have no effect on that.
If on income-based ESA, it may reduce payments if you are taken to have repaid the 7K without need by 10K-6K = 4K/250 = 16 pounds a week.

If repayments are more than 16 pounds a week at the moment, 11% - then there is a clear reason why you should repay - as whatever happens, the total income will go up. Hence you're clearly not doing it to gain more benefit - hence perversely benefit would not be affected.

If repayments are less than 16 pounds a week, then it gets complex, and the DWP may argue that you are repaying this to gain more benefit.

Mersey_2

I'd assume most people would pay off their debts on the day the £ credited their account, so there would not be £10k left on any one day on any bank statement.


Rogerblack is right strictly speaking - I was thinking of an overdraft and the Upper Tribunal decision means that net assets are what's looked at re capital threshold.

natethefathead

It would be a whole lot simpler if the credit card company ppi division would just use the refund that they are awarding to clear off the out standing balance on the same companies credit card... then all Id be getting only money Id be getting is about 3k and that's under the limit...


Might be a better solution might be to give it away, then the DWP can flip

tomtontom

natethefathead wrote: »

It would be a whole lot simpler if the credit card company ppi division would just use the refund that they are awarding to clear off the out standing balance on the same companies credit card... then all Id be getting only money Id be getting is about 3k and that's under the limit...


Might be a better solution might be to give it away, then the DWP can flip

The DWP, who give you money to live off, can "flip"?

Nothing like gratitude!

calleyw

natethefathead wrote: »

Might be a better solution might be to give it away, then the DWP can flip

umm no they will still treat you as having it. google deprivation of assets

Yours

Calley

natethefathead

Oh joy DWP wont commit to giving me a straight answer with this enquiry.....told them about the amount paid and the same company debt it will clear but all Ive been advised is send in the information for a decision maker to decide....

Robbie64

natethefathead wrote: »

Oh joy DWP wont commit to giving me a straight answer with this enquiry.....told them about the amount paid and the same company debt it will clear but all Ive been advised is send in the information for a decision maker to decide....

The person you will have spoken to isn't a Decision Maker so cannot commit to giving anything other than advice.

The Decision Maker will need to look at the full facts before making a decision. However unless the need to repay the credit card balance is pressing (eg because you are about to be taken to court because you have defaulted) then paying off the entire balance, especially when you are aware that in doing so it would increase the amount of benefit payable due to reducing your capital, would more than likely lead to a decision of capital deprivation.

TELLIT01

I think Roger has explained it about as clearly as it's possible to explain in #3 above. Even so it's making my head spin!

[Deleted User]

2 Things..they deducted tax from a pip claim?is that normal?
as for using the money to pay off the debt speak to somebody higher up the credit card co.food chain,it should be possible