PPI win but will I see any of the money?

melysion

With apologies for the fact that this may have been asked 150 times already..

A couple of years ago I put in a PPI claim and was successful. Job done I thought (and no third party rip off merchants to pay off either).

So imagine my surprise when I get home tonight to see that they have reviewed my case and awarded me another sum (bigger than the first!)

The PPI claim was for a loan which has since been paid. I've taken out another fairly small loan from the same bank since. I notice in my letter that it says:

"After we've paid the refubd into your bank account we may use the funds to reduce any outstanding balance you may have. If we intend to do this we will let you know in advance".

The money will be paid into the same bank as I've got the loan with (llyods). The loan that I claimed the PPI from is also from Lloyds. Can I therefore assume that I'll actually not see a penny of this money because it will be used to reduce the balance of my current (paid up to date) loan?

Thanks for your help

melysion

Apologies for the typos!

Alpine_Star

Banks have a right off set off to recover debts. What they'll mean by 'outstanding' is anything overdue. It you're up to date with your loan that shouldn't apply.

Insider101

No, if you're up to date with your loan then the money should go directly to you.

melysion

Great. Thank you for your replies

MakeAChange_2

I actually dont know the answer to your question but id go with what the more experienced MSE members have said, But overall i think just thank your lucky stars and kind of view it as either way you will be in a better position for something that you didnt even know you had coming! so well done you

melysion

Thanks for all the replies. I'm suspecting ill lose thr money to the loan now anyway as (not knowing about the PPI review) I took a loan repayment holiday last month. It says that it's not something I can do when I have an active PPI claim so I don't expect to see the money. Still I wasn't expecting it and it will help pay off the loan so I can hardly complain.

melysion

Before anyone has a go by the way - I'm perfectly entitled to take two repayment holidays a year as part of the loan agreement and I used the money to clear something else.

safestored4

I wouldn't be too sure that you don't end up getting the money. At the time you took the payment holiday it would appear from what you have said that you were not aware that your PPI claim had been reopened by the bank on their initiative. They may well take the same view.

melysion

I didn't have the faintest idea but you know what banks are like

welshgasman

I would be more than extremely surprised if you do not get the money, so do come back and let us know the result.