Bank wants to use refund to reduce my outstanding balance.. please help

[mac-d]

Hi, I'm currently in the process of reclaiming unfair charges incured on my loyds-tsb credit card and have so-far recieved a response offering me a fraction of what im trying to claim, I wont be accepting this offer and will try and push for the full amount, BUT heres the question;

I have an outstanding balence with this credit card and the account is in the collections department and I'm on a 'payment plan' to pay them back £15 a month, they have told me that the refund (if any) that I recieve from this claim will be used to reduce the outstanding balance on the account. Can thay do this?

I would much rather recieve a personal cheque for the amount seeing as I'm unemployed and have other financial commitments and no substantial income to speak of. Do I have any rights to request a personal cheque? or are they entitled to clear off part of my outstanding balance with any money I claim back from them?

As I currently understand it, it may be down to the term used for the re-embursment of these charges whereas; if the term 're-fund' is to apply, then they may be entitled to use the money to reduce my oustanding dept, BUT if the term 'compensation' is to apply then I'm within my rights to request a personal cheque.
Which term would be most accurate to describe this case?

I would appreciate any efforts to clear thing up for me and any information on where I stand in this matter, many thanks

P.S. I appologise if a similar matter has already been posted, but I've spent much time trying to find similar posts to no avail.

[tifo]

they'll keep the money towards any existing debt, whether with the bank or a DCA and the Ombudsman will say the same if you take it to them.

it doesn't matter if it's called refund or compensation or goodwill gesture. If there's any debt anywhere for that account, or a write off, that's where the money will go. If you part settle a debt, they still keep your money towards their write off.

sorry to be frank about it, but i've had over a year of fighting with DCAs and Ombudsman on who gets a refund and to date over £12,000 has been given away to DCAs or the bank, even on settled and closed accounts.

i've used all sorts of legal arguments etc but it doesn't seem to matter. Unless every penny of a debt has been paid in full by you, the money is used for that.

hope it helps.

[mac-d]

Thanks for your reply, Ive heard that somtimes its just down to pot luck wheather the bank/credit card company gives you a cheque instead of offsetting any outstanding balence, it sounds like youv'e had a tough time having to give up £12,000 to an outstanding balance.
I'm sure legally speaking if someone can prove these claims as 'compensation' then cheques would have to be issued but that would be a totally new, time consuming issue to arguee.

I'll persevere with my request and if I can make any headway then will post back to let anyone know how I get on.

[tifo]

yeah, i've been unlucky with most banks, though some have paid me directly. It's pot luck as you rightly say.

i'm still on the case with the FOS though, as it's not lawful to send my refunds to an outside company, even if it's a DCA, and definately not when i've settled the account in full. The FOS expect me to chase the DCA and ask for the money back.

[Dangermouse]

Hi

If (a)

The debts have been lawfully 'satisfied' under an IVA rather than simply written off, in other words the creditor has 'proved' the debt at say £10k & the IVA has been completed.

Can a claim be brought against the creditor for unlawful charges or an unenforceable agreement for the amount 'proved'in the IVA? Obviously any refund would have to be paid into the crediors iva fund or distributed accorfing to the IVa agreement if a completion certificate has been issued.

Any ideas?

Dangermouse

[mailmannz]

To be honest Mac-D, you are probably off just getting this debt paid off and just moving on. The sooner you can get rid of it, the sooner you are going to sleep better at night (one less debt to worry about).

Mailman