Paid into old account

Shotgun1975

I recently used a company to reclaim ppi. I have now received 2 payments one came as a cheque and the other got paid into an old account that I have not used for over 15 years. The problem is it was overdrawn and its swallowed all my ppi and now I have not got enough money to pay ppi company. Are they allowed to pay my ppi into an old account that is overdrawn or can I request for it as a cheque?

brettcta

You can request whatever you like but if the account’s overdrawn and they’ve paid it in, you’re going to find it rather difficult to get it back out. You could try explaining to the bank that it may leave you in a financially vulnerable position but there’s no guarantee you’ll get the cash, especially if the overdraft was unarranged and can’t be drawn on again.

one thing’s for definite though, the bank’s ear will be a darn sight more sympathetic than the CMC’s who won’t care less and will demand payment quicksmart.

[Deleted User]

Shotgun1975 said: got paid into an old account that I have not used for over 15 years. The problem is it was overdrawn and its swallowed all my ppi and now I have not got enough money to pay ppi company. 

Was the old account the one for which you claimed back your PPI? If so, it sounds like they have simply and deliberately offset the outstanding debt against your PPI redress. This is a recognised procedure which Banks often use to re-coup such debts. I doubt the Bank will be open to refunding you by cheque in these circumstances. 

Did you tell the Claim Company that you were in arrears prior to complaint? If so, the Claim Company should have refused to take on your case and you can complain to them on that basis. 

If you didn't tell them about the debt then all you can realistically do is arrange some kind of payment plan otherwise you'll end up in court..