RBS PPI Claim issue

MD23

Hi I’m hoping for some advice. I have recently accepted 3 PPI offers from Natwest/RBS and I’ve received payment for 2 of them and called today to chase the other larger amount. After calling a couple of departments I was advised that about 75% of my figure has been used to clear off an old loan I had with them when I was in quite a bit of financial trouble a long time ago. In fact the last date they had any contact with me regarding this debt was in 2010 and the gentleman on the phone advised me that the debt was written off by them in 2012. I was under the impression that after 6 years of no contact I was no longer liable for that debt, but given they have taken it I’m guessing my assumption was wrong. Can anyone confirm this for me?

[Deleted User]

Your assumption was correct but that doesn't mean the debt disappeared.

It was still owed, so they have used the redress to cover the remaining amount.

SonOf

I was under the impression that after 6 years of no contact I was no longer liable for that debt, but given they have taken it I’m guessing my assumption was wrong. Can anyone confirm this for me?

I am afraid you are partly wrong and partly correct.

The debt it statute barred. So, they cannot come after you in the courts to get it repaid. So, effectively you are safe on that one. However, the debt still exists on paper. i.e. you failed to pay the bank £x.

Lenders are allowed to use PPI redress against debts that are in arrears, defaulted or have been written off as part of an earlier agreed settlement or just written off because of lack of contact.

Lenders can only use the PPI redress for the same loan or chain of loans. This is why your other refunds are not going against that debt but this one is.

MD23

Thank you tbh I didn’t even know I still had anything o/s with them but it was a time when I was in a lot of financial trouble so it’s not a massive surprise. I have been checking various things on the web as guessed they would be entitled to take it but was hoping that wasn’t the case. Thanks for the help