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Question re Offset RBS

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Hi - I've had 3 offers on PPI from RBS - two of which relate to accounts that are in arrears (and with Cabot)

The main offer is from a mortgage which is complete/satisfied with no debt arrears. The total of all would be swallowed up by arrears on the other two (if that makes sense)

Question I have is will they offset all 3 against the two arrear accounts or will I get the amount for the mortgage account but not other two ? I'm sure I read somewhere any offset has to go against the account the PPI was with ?

Appreciate any advice

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  • dunstonh
    dunstonh Posts: 117,100 Forumite
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    edited 7 May 2020 at 12:26PM
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    They will only offset the redress against arrears, defaults and amounts written off on the same debt the PPI is attached to (or if its a chain of loans, against those as well).   So, a mortgage PPI refund will not go against a credit card debt for example.


    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.
  • Huxter34
    Huxter34 Posts: 8 Forumite
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    So on the loan I had no arrears I will receive that money (rather than it being offset to the arrears on the other loans) ?
    Cheers - advice all appreciated !
  • Gig1968
    Gig1968 Posts: 311 Forumite
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    I had some Ppi  redress from RBS for a loan that totalled £5k. The debt had been passed on to Cabot financial. I was paid the full amount and Cabot had no idea I had been paid the redress. As you debt has been passed n to a third party you are entities to the redress and it is up to you to settle the debt with the debt collector. That's the way it works between RBS and Cabot anyway. Was it an old bank of Scotland loan by any chance.



  • brettcta
    brettcta Posts: 4,693 Forumite
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    Gig1968 said:
    I had some Ppi  redress from RBS for a loan that totalled £5k. The debt had been passed on to Cabot financial. I was paid the full amount and Cabot had no idea I had been paid the redress. As you debt has been passed n to a third party you are entities to the redress and it is up to you to settle the debt with the debt collector. That's the way it works between RBS and Cabot anyway. Was it an old bank of Scotland loan by any chance.



    No it doesn’t, it’s done on an Individual basis, some have ROSO, some don’t.
    helpful tips
    it's spelt d-e-f-i-n-i-t-e-l-y
    there - 'in or at that place'
    their - 'owned by them'
    they're - 'they are'
    it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)
  • Huxter34
    Huxter34 Posts: 8 Forumite
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    I’ve had two texts saying payment has been made by cheque and will be with me within 10 days. Guessing the other is being offset? (Or should I expect another message saying not getting?) anyone had that text and not received it? 
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
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    edited 14 May 2020 at 6:09PM
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    Huxter34 said:
    I’ve had two texts saying payment has been made by cheque and will be with me within 10 days. 
    This will be subject to checking by another department of the Bank,  but (as Dunston pointed out out above)  PPI on unrelated lending should not be offset....
  • Huxter34
    Huxter34 Posts: 8 Forumite
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    Received two cheques. One was a loan and they never used it to offset the other loans. The other I’m guessing they did but until the money is banked I’d rather not check 
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