Studio give ppi then demand back.

Lynseyb1

Hi
I got a letter just before christmas from studio catolauge.
It basicaly said i had £1000 ppi mis payment refund.
This was great as christmas and two kids.so i put the check in the bank.
I now have a letter saying i owe the thousand pound back.and my account is in default.
Has this happend to anyone else?
And can i fight it.
I dont have a £1000 and will have to pay high interest on it.

Lynseyb1

Thanks in advance

dunstonh

You have no legal entitlement to keep the £1000 unless you had a reasonable expectation.

However, they cannot demand you pay it back all in one go. A payment plan over a reasonable period should be agreed.

However, first you need to speak with them to find out what the issue is. It may be a clerical issue. It may be a timing issue. e.g. many card refunds get credited to the card first and then deducted and paid by cheque directly. The deduction may have triggered something by mistake.

Until you speak to them, you will just have worry.