How do they get away with it??

porsche289

A friend of mine has been trying to claim back PPI on a loan for the last 4 months on a TSB loan.
As a precaution and due to being on a debt management program she opened another bank account with Natwest as advised and left her TSB account dormant but still pays an agreed amount towards her debt with TSB.
Following an appeal with TSB they have agreed to pay her a refund of PPI but say that it will be paid into her loan account so reducing what she owes.
She wanted a cheque or for it to be paid into her natwest account but TSB are refusing point blank to do this and say it will be paid to the loan account so she will not be able to get at it.
I thought she could request a cheque? Can they do this or is she up the creek without a paddle so to speak. She really needs the refund to pay off other things at the moment. Any help is appreciated

CLAPTON

this is quite normal

thepinkladez_2

i second this! its normal to do this technically your friend owes them money so they will just take the ppi money and put it into her loan debt, guess that way they know they will get their money!

porsche289

Is there anyway around it so she can have the money ie- can she have it paid into my account as i hold a TSB account.

CLAPTON

If she is on a DMP presumably that means she is not paying her contracted payments each month... so obviously they will want to use any available money to help pay off their loan.
She could always ask them I suppose.

dannynixon

Could she maybe ask for half to be paid towards her debt and half in a cheque?