EGG PPI Refund +8%

[Billy goat gruff]

Hi folks,

My wife has just had a letter from Egg who have put their hands up & are going to refund her £1200+ mis sold PPI however she doesnt want it paid into her egg account she wants it as a personal cheque to her. Any advice/template letters that we can use to challenge this please?

[Billy goat gruff]

bump

[Mistermind]

If Egg unlawfully extracted premiums for missold PPI they are bound to refund same unless they want to contest it in court. However if these PPI levies displayed in your statements were not paid off by the cardholder, then Egg could argue that because you never paid for them, they need never repay you, instead they would be justified to REVERSE these charges plus 8% per annum as a paper transaction.

 

If at any stage you had reduced your outstanding balance to zero or near zero, then you could argue you physically paid off the PPI levies, so now they should pay back into your pocket what was physically paid to Egg from your pocket.

 

If since then your balance again rose due to purchases, that would be due to subsequent separate debits, which should not be offset by PPI refunds.

 

Egg would say, as they extracted premiums from the account not from your pocket, then they would be justified in refunding the account so long as it remains open and in force.

 

If the account is no longer open, but was actually sold off into the ownership of a DCA, then that would be very different. They are legally bound to refund you, not the DCA. Egg never took premiums off the DCA so they cannot refund the DCA.

 

Unless the account had been sold, it would be a very difficult argument to carry against Egg, who are afraid they may refund you but you may not repay the account balance. I have never heard of anyone winning such an argument unless the account had been sold off to a DCA. I myself would not spend time trying.

 

Sorry if this is not the favoured answer, but very well done in securing such a handsome refund, the drinks are on you.

Edited February 20, 2010 by Mistermind

[Billy goat gruff]

Ive written to them asking for a personal cheque and not a refund to the egg account. Hope that I set a precedent.

Thanks for your advice and interest its really appreciated.

[Billy goat gruff]

Got a reply from egg and they have paid by BACS transfer the full PPI refund + 8% into the wife`s bank account. Could the moderators set this as case won please.