Packaged bank account fees repaid - but not to me

holmer444

Bit of a complicated story here so bear with me.

I've recently reclaimed fees deducted from a packaged bank account I was mis-sold by Natwest, they upheld my complaint (which is great), but when they sent me the settlement cheque they only sent me the interest amount.

In their letter they state that as my old account is currently being managed by their Collections team (I'm just under a year into a debt management plan organised via Step Change), the fee refund has been applied to that account to offset the balance.

Appreciate I owe Natwest money (and I'm working to put that right), but that money was taken from me and I don't think it's fair that they should decide whom it's repaid to.

Is it worth a further complaint or do I not have a leg to stand on?

bigadaj

A bit legless.

eskbanker

They'll be using setting-off rights, see http://www.moneysavingexpert.com/banking/setting-off

Check your account Ts & Cs if you think they may not have these rights....

societys_child

So you spent their money, which you've not yet repaid, but you feel they should give you some more?

In a way they have actually given it you, by reducing your debt.

holmer444

societys_child wrote: »

So you spent their money, which you've not yet repaid, but you feel they should give you some more?

In a way they have actually given it you, by reducing your debt.

Not really.

They mis-sold me a bank account which they have admitted and acknowledged, they then took money from me unfairly (my money not there's), then when it came to giving it back to me they decided not to.

Who are they to decide how I should spend my money?

holmer444

eskbanker wrote: »

They'll be using setting-off rights, see

Check your account Ts & Cs if you think they may not have these rights....

I fully expect they do have these rights, just was a little surprised.

Thank you for your reply

Stevie_Palimo

You have no chance what so ever of getting this back to you in any kind of payment whilst you owe them money and they are well within there rights to utilise this refund bar the interest to have any money you owe them reduced.

Nothing you can do here so best bet is move on and think that you glad the debt is dwindling down.

Kim_13

As the OP is on a DMP, shouldn't the money be going to Step Change to be divided among all their creditors?

System

Is the OP kidding?

holmer444

Stevie_Palimo wrote: »

You have no chance what so ever of getting this back to you in any kind of payment whilst you owe them money and they are well within there rights to utilise this refund bar the interest to have any money you owe them reduced.

Nothing you can do here so best bet is move on and think that you glad the debt is dwindling down.

The sad irony is that my debt with the Natwest isn't and this additional sum will no doubt be eaten up by the neverending charges and penalties they like to levy against folks who have gotten into financial hardship.

societys_child

They mis-sold me a bank account which they have admitted and acknowledged

Yes, but you owe them money, and it appears they have first charge on the refund.