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PPI Claim and Set-Off rule
Ceorl
Posts: 6 Forumite
I've just made a successful Plevin PPI claim against NatWest (RBS) for my credit card and received an offer letter, which I am happy with.
However, the letter states that acceptance means the award will be used to clear any arrears on my credit card account, which I believe comes under the 'set-off' principle in banking.
Is it compulsory or would I be able to request a cheque? I had planned to make a lump-sum payment to a loan I have with another lender, which will free up more cash than a reduction in my credit card balance.
Any advice is much appreciated!
However, the letter states that acceptance means the award will be used to clear any arrears on my credit card account, which I believe comes under the 'set-off' principle in banking.
Is it compulsory or would I be able to request a cheque? I had planned to make a lump-sum payment to a loan I have with another lender, which will free up more cash than a reduction in my credit card balance.
Any advice is much appreciated!
0
Comments
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If you have arrears, they can off set. It would be their choice not to, which would be unlikely.0
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The lender is allowed to set off the redress against the debt if the account is in arrears, defaulted or had amounts written off as part of an agreed settlement.
The lender is required to consider alternatives if they deem you to be in financial hardship.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If you can convince the Bank that you are in financial hardship and that the other loan is far more pressing, then they may decide to pay you some of the redress.I had planned to make a lump-sum payment to a loan I have with another lender, which will free up more cash than a reduction in my credit card balance.
However, I doubt they'll pay you redress simply to "free up cash" for your own use, so tell them precisely the lump sum you hope to pay to the other loan and why.0
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