How do they repay?

[telrac]

I am in the process of waiting for Egg to do something about my claim for missold ppi (going grey in the process) but today they have told me I have 'passed the first stage' but because of the amount involved it needs to be looked at by another department. If I eventually succeed in this I calculate I could be owed about 4 - 5K. My loan is still running and will be for couple of years yet. Can Egg insist that any repayment due to me is lodged against the outstanding balance of my loan? I really hope not as I can make the repayments and have never defaulted and a nice lump sum would be very welcome in my hands just now!! Has anyone found their repayment is been used to pay of other debt without their consent? Thanks in advance......

[BankFodder]

how long as your complaint been going on? As far as I know all of these institutions have eight weeks to sort out any complaints. As there been an extension in respect of PPI?

[telrac]

Hi, I first wrote to them in February (approx 15 weeks ago!!) and because I heard nothing wrote again in April with a copy of my original letter. They are using the date of the April letter as their first contact date as deny receipt of my initial letter. This means in their view they have about another 4 weeks to sort out. finally after tonnes of generic 'we are dealing with your claim' replies they told me by phone today it is being looked at but it then occurred to me I may not actually get any money as my loan still has an outstanding balance - can I insist on refund of any monies due to me as an actual payment and not a credit on my account?

[landy_alert]

Hi Telrac:)

 

I am only a novice in all this myself and I'm sure someone else more experienced than me will come along to help you, but as far as I'm aware, if you have proved (and they accept) that the PPI was mis-sold, then even if the loan is still running you can insist that the refund is made to you in the form of a cheque. It was a separate issue from the loan and therefore you are perfectly entitled to have it back as a payment in your hand.

 

However, I have heard of many cases where banks try to insist that the loan is restructured once PPI is refunded and that you need to sign a new loan agreement. This is not necessary at all and is most likely their way of attempting to get some more money out of you in the form of further interest on this 'new' loan and should not be agreed to!

 

Hope this helps!

 

Regards,

 

Landy x

[telrac]

thanks v much for that, will keep fingers crossed!

[alanalana]

Hi, I first wrote to them in February (approx 15 weeks ago!!) and because I heard nothing wrote again in April with a copy of my original letter. They are using the date of the April letter as their first contact date as deny receipt of my initial letter. This means in their view they have about another 4 weeks to sort out. finally after tonnes of generic 'we are dealing with your claim' replies they told me by phone today it is being looked at but it then occurred to me I may not actually get any money as my loan still has an outstanding balance - can I insist on refund of any monies due to me as an actual payment and not a credit on my account?

 

Firstly do everything in writing and send all correspondence at least recorded to be signed for. That way you can follow the Royal Mail tracking system to prove the mail was delivered and when it was delivered.

 

On the issue of refund you can insist on any repayment of PPI money to be paid to you by personal cheque in your name. They cannot use PPI money to pay off any money still outstanding on the loan. The loan and PPI although maybe shown on one Consumer Credit Agreement actually require two signatures one for the loan and one for the PPI. Reufnds of mis-sold PPI should include the premiums with the interest and also add on 8% statutory interest from the date the loan started until you accept the offer of repayment.

 

See these two threads for further advice on the subject.

 

Multiple agreements falling within section 18 CCA 1974

 

Is My Agreement Enforceable - Useful

 

hope this helps

 

aa

[dec22]

I am in the process of waiting for Egg to do something about my claim for missold ppi (going grey in the process) but today they have told me I have 'passed the first stage' but because of the amount involved it needs to be looked at by another department. If I eventually succeed in this I calculate I could be owed about 4 - 5K. My loan is still running and will be for couple of years yet. Can Egg insist that any repayment due to me is lodged against the outstanding balance of my loan? I really hope not as I can make the repayments and have never defaulted and a nice lump sum would be very welcome in my hands just now!! Has anyone found their repayment is been used to pay of other debt without their consent? Thanks in advance......

 

My claim for misselling was resolved in two weeks (sold over the phone in 2006) and they credited my loan account and said my loan would finish 2 years earlier. I didn't realise that you could ask for the money to be paid back to you as this was my first claim.

 

RBS refunded my payments made on my current loan directly to my current account and I asked my RBS caseworker what the standard practise was and he said any payments made should be refunded. So although a few months had passed, I contacted Egg again and asked them to put me back in the position as if PPI had never been added. After some time they reduced my monthly payment to refect loan only payment with my loan still finishing a year earlier.

 

I wrote again saying that I wanted my loan to run the full term of the agreement and wanted the payments I had made refunded to me. They said this wasn't their policy and they would have to increase my payments if they refunded which was absolutely rubbish.

 

Sent imy complaint regarding refund on to the FOS but it was 6 days outside of the 6 month period and they returned my complaint. Have appealed against FOS decision and am waiting for their response.

[Popeye]

Is the position with credit cards the same ? I know I haven't signed anything at all for the PPI and RBS have agreed to refund £703 but they keep insisting that it needs to go towards the credit card balance despite several letters asking for a cheque 'to put me back in the position I would have been in' BLAH as per their offer letter

 

Thanks?

[alanalana]

Is the position with credit cards the same ? I know I haven't signed anything at all for the PPI and RBS have agreed to refund £703 but they keep insisting that it needs to go towards the credit card balance despite several letters asking for a cheque 'to put me back in the position I would have been in' BLAH as per their offer letter

 

Thanks?

 

 

You will keep a better control on your own case if you open your own thread.

aa

Edited June 6, 2009 by alanalana

[telrac]

Thank you so much everyone for your advices and views. My husband thinks this is a waste of time as doesn't believe I will ever see any money but after reading other threads on here I think I really do have a chance and will pursue as hard as I can. Hubby currently out of work and finances v tight (like most other folk I know) so will be pushing for a cheque in my hand rather than credit on my loan account. Will report back, watch this space......;-)

[dec22]

Thank you so much everyone for your advices and views. My husband thinks this is a waste of time as doesn't believe I will ever see any money but after reading other threads on here I think I really do have a chance and will pursue as hard as I can. Hubby currently out of work and finances v tight (like most other folk I know) so will be pushing for a cheque in my hand rather than credit on my loan account. Will report back, watch this space......;-)

 

It is easier to get the funds paid back to you on a loan than it is on a credit card. I have only recent ly applied for PPI refunds on credit cards so haven't much experience of how they will be dealt with.

[johnnymitch]

Hi telrac:)

 

Providing your Loan Account isn't in arrears , I see no reason why you shouldn't ask for a cheque for repayment of PPI . If it is in arrears they may use the 'Right of Set-off ' to defray the arrears on the loan, which they are legally entitled to do.

[troughmonster]

I am in a similar situation, in that I had 3 Egg loans.

The first two were settled in full, and only the third one is still open, and is in arrears, and being repaid on a DMP (Egg have passed the loan onto 3rd party, and are no longer dealing with it).

 

Can someone clarify what rights I have in terms of having any succesful claims for PPI paid directly to me, and not to the current live loan which is in arrears?

 

I am thinking that at least they would have to refund the PPI + interest to me directly on the first two loans, as they are paid off, and completely seperate to the current loan. Is this correct?

[johnnymitch]

Hi Troughmonster:)

 

I'm afraid that any money which is due to you can be used to off-set the debt on any other account which is in arrears (under the Right of Set-off )

 

Right of set-off ...............

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

 

There would be no harm in asking for your refund to be made by cheque - (if you get it you could always pay it into another bank ) , but I can't see them missing a chance to apply the R of S ......

[troughmonster]

Hi

 

thanks for the info.

 

Do I not have a right for them to put my loan accounts back as though the PPI had never existed? If so, surely they cannot offset what would be due to me from my first (and paid off) loan?

 

I do fully appreciate that any PPI on the current loan may be used to offset, but is it that simple for old loans that were settled?

[johnnymitch]

My understanding of the R o S troughmonster , is that any money coming into any account for the same individual , is fair game .........

 

" A firm has this as a general right, whether or not it mentions the right in the account terms. So, in the examples above, the firm can transfer money from an account that is in credit in order to make payments due on another account. But it does not have to do this. "

 

It does not have to do this - - but you can bet your PPI refund they will !

[Trudy B]

Hi All

 

Does anyone know if you are entitled to a PPI refund in cheque form when an account is not in arrears, default etc, i.e. when it's just a normal credit card ticking along, debits, credit, rip off interest blar blar etc??

 

or in all cases does it have to be offset against the balance of the credit card?

 

T

[alanalana]

I am in a similar situation, in that I had 3 Egg loans.

The first two were settled in full, and only the third one is still open, and is in arrears, and being repaid on a DMP (Egg have passed the loan onto 3rd party, and are no longer dealing with it).

 

Can someone clarify what rights I have in terms of having any succesful claims for PPI paid directly to me, and not to the current live loan which is in arrears?

 

I am thinking that at least they would have to refund the PPI + interest to me directly on the first two loans, as they are paid off, and completely seperate to the current loan. Is this correct?

 

Troughmonster,

 

Can you please start your own thread that way it saves confusion in trying to follow all the cases and it complies with the site rules.

 

http://www.consumeractiongroup.co.uk/forum/newthread.php?do=newthread&f=111

 

Just click on the link put in a suitable heading that you can keep track of and post your questions.

 

aa

[alanalana]

Hi All

 

Does anyone know if you are entitled to a PPI refund in cheque form when an account is not in arrears, default etc, i.e. when it's just a normal credit card ticking along, debits, credit, rip off interest blar blar etc??

 

or in all cases does it have to be offset against the balance of the credit card?

 

T

 

Trudy as with troughmonster previous post please start your own thread put in a suitable title it saves a lot of confusion in following individual cases and complies with the site rules.

 

http://www.consumeractiongroup.co.uk/forum/newthread.php?do=newthread&f=111

 

aa

[johnnymitch]

Hi TrudyB ,

 

If you look at the link I gave troughmonster you'll see that it says :

 

"The debt must be due and payable. For example, if a customer misses making a loan payment, then (at least until it calls in the loan) the firm can take only the missed payment – not the balance of the loan."

 

From that I read that even if your Credit Card was in arrears , they could only take the amount of the missed payments and would have to refund you the balance ...... the whole amount of your Credit Card is not 'due and payable' immediately ...... therefore you can ask for refund to be made by cheque....

[johnnymitch]

Hi TrudyB ,

 

If you look at the link I gave troughmonster you'll see that it says :

 

"The debt must be due and payable. For example, if a customer misses making a loan payment, then (at least until it calls in the loan) the firm can take only the missed payment – not the balance of the loan."

 

From that I read that even if your Credit Card was in arrears , they could only take the amount of the missed payments and would have to refund you the balance ...... the whole amount of your Credit Card is not 'due and payable' immediately ...... therefore you can ask for refund to be made by cheque....

[johnnymitch]

Oops Sorry , aa I didn't look back far enough - I thought this was Troughmonster's thread ......... another Senior Moment

[alanalana]

OK johnny,

 

It just makes life a little easier to keep track if everyone has their own thread otherwise folks will miss out on advice on their own plight:D

 

aa

[johnnymitch]

I know, and I've given the same advice myself a few times .....

[telrac]

Well, the inevitable has happened.. Egg have written acknowledging that ppi was missold and outlining the amount due to me which totals jsut over £4800.00. Happy days I thought - but no. This has been credited in full against the outstanding balance of my egg loan. I have never missed a payment or defaulted in any way and am hopping mad! I rang them and spoke to a manager (a first, normally can't get past the operator!) who says it is a 'business decision' and Egg's policy that if a refund is due and a loan still live they credit the rebate against the loan. I explained that the agreements are entirely separate, that they had agreed the amount of the loan and repayments and I have met these. Also that the PPI was a separate agreement, separate sum to be paid and separately detailed monthly repayments but she just repeated parrot - fashion that If I have a problem I need to contact the FOS but it was Egg's policy and in their terms and conditions! (how can you write in to T & C that if a policy ends up being shown as missold you will keep the money and credit to a loan account!!) I told them that I believe this is a further delay tactic to avoid paying out for another few months but may as well talk to the wall! I am now collecting all my correspondence, agreement etc and writing to FOS in strong terms - I wonder if I'll get my money by Christmas! Brings new meaning to the term 'hollow victory'