Submitted claim to rbos for £7,700 they offered £7,200 in the same post as a court claim being submitted - accepted their offer but have found out today that they have used all the money to pay off my overdraft and existing loan with them as in their words "it was not my money" - did originally ask for cheque told unable to have that it would have to be paid into my account as was still open - said that I had sent letter shutting account but that was not received this account was deemed active - no want to know what to do for the best - do I pursue them through courts for interest (court claim was for £11,500) or do I just lick my wounds and retreat?