PPI and early repayments

N_J_Drew

Hi,

I had a shock last week as almost 300 pounds was taken from my bank account without my knowledge by GE Capital.

18 months ago, I bought a sofa from DFS for 1740 pounds on a 12 month 0% credit loan.

11 months later (March 07) I paid 1740 pounds off for the whole sofa, not wanting the interest payments added on. I thought all was finished.

Until 6 month later, last week, 270 quid was taken from my account by GE Capital saying it was Payment Protection Insurance that I had taken out for the sofa.

Looking at the original contract there is a tick and a payment insurance amount (strangely higher than the amount but I dont want them noticing that) but the whole lot was paid off before the start of the repayments.

I talked to GE Capital who said I had ticked insurance so I should pay and if I wanted the money back I should claim from my bank via the Direct Debit Gaurantee (Not too sure if that'll work) but my bank says that GE capital should refund me the money since they took it. Neither wishes to budge.

Where do I stand? Can I claim the money back or is it just a case of tough luck? What would have been the point of the payment protection if it was already paid off before payments have started?

Neil

chambta

I work in a high street bank and we're keen to avoid giving money back under d/d indemnity scheme if we can, particularly for large-ish amounts (£100+) and when there's a chance the company may not pay up.

If I were you and you don't get the answer you want from your branch, ask to speak to the manager, get a name and insist they reclaim it under the quoted guarantee scheme.