PPI refund gone wrong

duggan18 · 25 April 2009 at 9:58PM

I have been trying to cancel the PPI i have on my loan and have also written to Natwest to reclaim the money i have paid on the PPI. A few weeks ago i recieved a report from Natwest explaining that they have looked into my case and are willing to give me a refund of £1639 and a goodwill gesture of £750, if i accepted these amounts i would have the monies debted to my current account. I though it was strange to be debting them to my current account but didnt think anything of it and accepted these amounts. 2 weeks later i recieved another letter from Natwest saying they had recieved my acceptance and will let me know when they have debted the monies into my account.

I went on my online banking and found the £750 had gone in so i went down to Natwest and and withdrew what i was able to. I checked again on Friday and saw that the £1639 was in, so i withdrew that amount too. With the monies i paid alot of my house bills and done a good food shop. I have recently found out from Natwest that i wasnt suppose to have these amounts debted to my current account but they will not send me out anything in the post to state this and said that just because the letters i have say the monies will go to that account they are wrong. I have recently joined and IVA with my partner due to debt and redunancy. Natwest are not prepared to admit they have made an error by putting the money in my account and i think that because i am with an IVA that why that do not want me to have the money.

Where do i stand on this, do i have to give the money back?

di3004 · 25 April 2009 at 10:32PM

duggan18 wrote: »

I have been trying to cancel the PPI i have on my loan and have also written to Natwest to reclaim the money i have paid on the PPI. A few weeks ago i recieved a report from Natwest explaining that they have looked into my case and are willing to give me a refund of £1639 and a goodwill gesture of £750, if i accepted these amounts i would have the monies debted to my current account. I though it was strange to be debting them to my current account but didnt think anything of it and accepted these amounts. 2 weeks later i recieved another letter from Natwest saying they had recieved my acceptance and will let me know when they have debted the monies into my account.

I went on my online banking and found the £750 had gone in so i went down to Natwest and and withdrew what i was able to. I checked again on Friday and saw that the £1639 was in, so i withdrew that amount too. With the monies i paid alot of my house bills and done a good food shop. I have recently found out from Natwest that i wasnt suppose to have these amounts debted to my current account but they will not send me out anything in the post to state this and said that just because the letters i have say the monies will go to that account they are wrong. I have recently joined and IVA with my partner due to debt and redunancy. Natwest are not prepared to admit they have made an error by putting the money in my account and i think that because i am with an IVA that why that do not want me to have the money.

Where do i stand on this, do i have to give the money back?

Hi there

Sorry to hear of this muddle here.

It certainly isn't your fault either that it was paid into your account.

I would argue on paying this back - if they mentioned this, what is done is done, you did not know and as far as you know as it was debited into your account it was yours and it was the amounts they given you in the first place, and maybe request a copy of the phone calls, they may suggest a SAR (Subject access request), but it maybe worth it to get hold of the recordings from them, plus all data to hopefully help back your case.

Have you already requested a SAR prior to the reclaim?
If not it may be wise to do so anyway, but ask if they will provide them to you first.
You will find the template for this on the thread, any problem finding this let us know.

Good luck and please wait for others opinions on this matter.

Beatlefan · 26 April 2009 at 12:49AM

Sorry to hear about this. Sounds very strange that they should offer you the money and then ask for it back.

I'm no legal expert, but you do have it in writing from them that they were refunding you the PPI money and paying it into your current account. I don't see how they can turn round and ask for it back.

I'd strongly recommend you seek legal advice from the Citizens Advice Bureau. But I don't see how they can just say "the letters are wrong" and give no other explanation. They're their letters. They sent them to you after all! You acted in good faith after they said they were paying you the money as a goodwill gesture.

Good luck and let us know how you get on.

oscar52 · 26 April 2009 at 1:47AM

Personally, as you have a letter telling you how much you are getting, I would tell them to whistle.

OK, mistakes can happen, but unless they are prepared to put this in writing, theres not much they can do...

You could be right with the IVA - it could be they now want the money back to pay against your debt. They cant actually do this - everyone gets the same amount (% wise) from an IVA and Natwest cant insist they get more. However, DONT contact your IVA provider over this - I am pretty sure they can insist that the money is sent to them to be distributed between all your creditors.

petermb_2 · 27 April 2009 at 9:45AM

Usual question on this.
Do you have a copy of the agreement?
how much was the loan?
how much was the PPI premium.?

They have made you an offer of refunding and then refunded it. I think that you should find out a little bit more about this loan arrangement and see if pressure can be put on them to maintain the status quo or even to go further still.

PPI refund gone wrong

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free