PPI repayment...what to do with the £?

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
3 replies 561 views
mrsdwhitemrsdwhite Forumite
291 Posts
I've been Money Tipped!
edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
Hi all!
I had a rather nice late Xmas present from Lloyds this morning of a PPI repayment of £4250 :j I've not had the money yet, just a letter telling me that's what they're going to give me.
The money will be paid into my Lloyds current account via BACS, I did try to get them to send me a cheque but the man on the phone really didn't want to pay it in cheque :mad:. I am on a DMP with my Lloyds current account (overdraft), credit card and loan amongst my creditors.
Can Lloyds take the money and put it towards what I owe them? As far as I'm aware up to now they have all but ignored my DMP and are treating my accounts as active accounts. My overdraft is not in any arrears, nor has it been at any point.
I have two other accounts one with Next and another now with Barclaycard, both in my DMP. Between my PPI repayment and some savings DH has from a PPI repayment of his own we could clear all of my debts and I would repay him my current DMP payments of £300 pm to build his savings back up.
Does anyone know how likely Lloyds, Barclaycard and Next are to take full and final settlements and what sort of % I should offer? Any pointers on full and final payments would be gratefully received. :)
Thanks.

Replies

  • dunstonhdunstonh Forumite
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    Can Lloyds take the money and put it towards what I owe them?

    If the debt has not been sold to a third party collection agency, then yes they can. However, you can then withdraw any amount you like as long as you remain within your account limits.
    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.
  • magpiecottagemagpiecottage
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    mrsdwhite wrote: »
    Can Lloyds take the money and put it towards what I owe them?

    Absolutely they can - it is called Setting Off (as in setting off one debt against the other). As a shareholder in Lloyds TSB (i.e. a taxpayer) I would prefer that they use it against the money you owe me than the money you owe anybody else.
  • I also am a taxpayer!!!

    Thanks for the help RE: Seting off, I guess I will wait and see. To be honest, I wouldn't much care if they took the money, as it would put me one step closer to being rid of them as they have been a huge pain in the behind as long as I've been with them, not to mention disorganised! They can't even get my name right half of the time!
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