Capital One - PPI and default sums

Debs1980

Hi,

I received a letter today from Capital One after claiming back my PPI charges. They have upheld my claim and offered the amount of £536.29 BUT they have said they will take £203.19 of this for ‘any over limit or defaulted balance on the account’.

I called them up to ask why this was, as back in August 2016, I paid them over £700 in what I was told was ‘full and final settlement’ and as far as I was aware the account was settled and closed. They said that the remaining balance still existed as I had only made a partial payment. After a lot of time on hold and 3 different people, I spoke to a manager who said he couldn’t overturn the decision or offer me any extra unless I had priority debts but that I could send it to the Financial Ombudsman if I chose.

Is it worth sending this on to the FOS or will they just tell me the same as Capital One? I was never informed that the rest of the debt still existed, but was under the impression it was completely written off. It doesn’t show on my credit file any more.

Also unsure what happens with regards the cheque for the difference. They said it’ll come within 10 days but if I cash it, does that mean I can’t ask the FOS to look at the claim? Do I return it to Capital One first?

Thank you in advance!
Debs

[Deleted User]

Cap One are correct.

When you get the balance, you cash it and it will appear in your current account.

-taff

Just because you offered them a F&F doesn't mean you paid all the debt. They are allowed to offset any redress against monies owing regardless of whether the debt has been settled or statute barred.
The FOS won't overtun that decision.

[Deleted User]

Debs1980 wrote: »

back in August 2016, I paid them over £700 in what I was told was ‘full and final settlement’ and as far as I was aware the account was settled and closed.

You need to understand that a "full and final settlement" works both ways. They won't chase you for money you still owe, but that does not mean you can chase them for old PPI without any amount awarded as a result being offset. You are fortunate that the amount you still owed was less than the PPI redress so you still get a refund of (some) money. Others in the same position have ended up with no refund at all.

You won't therefore be getting the £203.19 whether you refer the complaint to the Ombudsman or not.

Sorry.

antrobus

Moneyineptitude wrote: »

You need to understand that a "full and final settlement" works both ways. ...

Yup. Legally speaking, the OP is entitled to absolutely nothing. Capital One have only decided to pay out the balance because they know that FOS, which operates on the basis of what is fair, would have made that ruling.