Bank retaining PPI

A few years ago had an IVA.  A certain Bank made a claim and the amount to be paid back was agreed.  IVA finished years ago.  PPI claimed from Bank after being taken to Court.  We have been awarded the claim but the Bank are now saying they are passing the amount awarded to the debt department.  Can then do this when the IVA was agreed paid and finished and awarded a certificate of completion 

Comments

  • dunstonh
    dunstonh Posts: 116,229 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Yes.  The bank can set off the redress against arrears, defaults and amounts written of as part of an agreed settlement.

    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.
  • Even years after the IVA was completed.
  • That's right.

    Until you pay back every last penny, they'll keep any redress to offset their losses.
  • Yes, think logically - you borrowed money, didn't pay back the agreed sum, now you are asking them to give you a refund of money you didn't pay in the first place. PPI can (and is) offset against the unpaid debt, even when the debt is reduced/partially settled. You do have the benefit of knowing your creditor was paid back more of what they lost out on though, which can only be a good thing.
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