RBS refuse to pay refund direct - they want to clear creit card

[Zaraphin]

Hi

 

A friend of mine has had an PPI refund offer from her Royal Bank of Scotland Credit Card, but they are refusing to pay her direct they have told her they will pay direct to the credit card balance.

 

The credit card has never had a late payment always been up to date (lucky her) can they do this.

 

Wuld appreciated some advise.

 

Zara

[dx100uk]

yes 99% of refunds go off the outstanding balance ofcredit cards

 

i hope you charged them compounded int?

 

dx

[alibobsy]

I thought they can only use the rules of offset to clear notified arrears NOT just a negative balance.

 

The FOS guidence-see below, is clear.

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

 

I think the banks are trying anything to avoid actually paying any cash out, but most back down when challenged. I would quote the offset rules as above and challenge it in writing they can wriggle if over the phone.

Also the 8% stat interest is compensatory and so should definately not be used as any kind of offset-even banks trying to use the laws of offset seem to pay this separately.

 

Are you sure they didn't say to her that it had gone to a dept to see if any offset against the credit card account was required?

 

Ali x