Capital One PPI Plevin Success but Allocated Against Balance

Options
katsikaki80
katsikaki80 Posts: 4 Newbie
in Reclaim PPI & other insurance
Hi Everyone,

I'm new to the forums but have been following them for a number of years and have proved more than helpful.

I have a query relating to my PPI Plevin redress from Capital One. I'm currently on a DMP with StepChange and Capital One are aware of this and have been receiving payments managed by them for over a year. I'm two months in arrears with rent and have just missed my payment for Council Tax but Capital One are insistent on using the £2000 redress to repay my card balance, when I am in clear financial hardship and this money would have been used to clear those priority debts.

They have asked me to prove this but I don't really want to stir up a hornet's nest with my landlord by contacting him asking him to write a letter to this effect. Obviously, a warning will be dropping through my door very soon for Council Tax but I don't want this to escalate, as I was at a point of no return with the Council last year.

What are my options here? Capital One have my reference number for StepChange but are refusing to budge until I can provide proof of financial difficulties.

Thanks in advance for your help.

Comments

  • dunstonh
    dunstonh Posts: 116,387 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    What are my options here?

    You know them already.

    Lenders are allowed to put it against the debt but when you can evidence financial hardship, they will often consider changing that. You need to decide what you want to do.
    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.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    katsikaki80 wrote: »
    Capital One have my reference number for StepChange but are refusing to budge until I can provide proof of financial difficulties.
    Whatever your misgivings about it, you have no choice other than to provide the evidence requested if you want the Bank to pay out.
  • duffs54
    duffs54 Posts: 131 Forumite
    PPI Party Pooper
    Options
    Can't you reclaim just the interest back for yourself, in PPI claims you pay back the bulk to the company you owe, but they are not allowed to keep the interest, is this the same with Plevin possibly?

    Under the Plevin rule, if more than 50% of your PPI's cost went as commission to the lender and this wasn't explained to you, you're due the extra, plus interest.
  • -taff
    -taff Posts: 14,507 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    You could use your bank statements instead of asking the landlord to write to them, and point out you are in arrears for rent as there will be no debit for it. If you have your rental agreement, you can show you are renting above board.
    Shampoo? No thanks, I'll have real poo...
  • katsikaki80
    katsikaki80 Posts: 4 Newbie
    edited 6 December 2017 at 12:16AM
    Options
    Thank you for all of your help and replies.
    -taff wrote: »
    You could use your bank statements instead of asking the landlord to write to them, and point out you are in arrears for rent as there will be no debit for it. If you have your rental agreement, you can show you are renting above board.

    I would happily do this but I don't know if they will get confused about the timing of the payments, as they're all over the place. For example, I've just paid for rent that was due October 28th on the 4th December and paid on the 27th October for September 28th. They might look at this as being nearly on time as they don't specify which month they're for. My statement for this last year does show 3 returned rent payments though as there were insufficient funds.

    I also have evidence on my statement that coincides with extra borrowing (247MoneyBox - yes stupid I know but I can't let more rent lapse) that I can't afford to cover the latest rent payment I have made - on exactly the same date, going in to the same account.
    duffs54 wrote: »
    Can't you reclaim just the interest back for yourself, in PPI claims you pay back the bulk to the company you owe, but they are not allowed to keep the interest, is this the same with Plevin possibly?
    Under the Plevin rule, if more than 50% of your PPI's cost went as commission to the lender and this wasn't explained to you, you're due the extra, plus interest.

    Is that actually a thing? £900 of the Plevin was a refund and over £1000 interest. Would be interesting to know if it was.
  • -taff
    -taff Posts: 14,507 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Payday loan borrowing is a good indicator that you're in financial difficulty
    Shampoo? No thanks, I'll have real poo...
  • CMS301272
    CMS301272 Posts: 1 Newbie
    Options
    Hi, I wondered if there was an update to this post from capital one ?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards