Ppi reclaimed

[splitenz]

Hi, my question is this,

 

 

if you reclaimed ppi on a credit card ,

 

 

should the outcome be reflected in the balance of the card as the ppi

and the interest was added to the original balance in the first place?

[rebel11]

Hi splitenz

 

If they refunded PPI + Interest, you can't have it back twice.

[splitenz]

Just to clarify what you should get back under the system of redress laid down by the regulators...

 

1-> All premiums paid

 

2->All contractual interest which arose as a result of those premiums

 

3->The account should be reconstructed with the above removed. If that reconstruction shows that in any month the account went into credit, you get 8% simple interest on that credit balance for that month.

 

4-> If the account is closed and paid off then there will be a difference between the actual amount paid and the reconstructed balance at that date. 8% simple is awarded on that difference running from the fate of the payment of the card balance up to the date of settlement of the claim.

[dx100uk]

depends if there is an outstanding balance too

and if its been sold or not.

 

 

if the account is still owned by the Original creditor,

then the 'debt' must obviously contain a good proportion of the 'mis-sold ppi + interest.'

 

 

thus the debt is as such only 'notional', so the ppi reclaim will be used to abolish the notional debt

as the debtor has not actually paid the ppi etc they are thus reclaiming.

 

 

dx

[splitenz]

Hi dx100uk,could you expand ,or am i right in saying, if i had a credit card with say a £3000 pound balance and reclaimed ppi and interest on that card, that amounted to £5000 then do i recieve £2000 or the full £5000 and the card reverts to zero balance because the ppi and interest was rapped up in the original balance? very confusing?

 

splitenz

[ims21]

If the account is still with the original creditor then they are entitled to offset the PPI refund against the account balance. So in your example they can take £3,000 to clear the account and then refund the balance of £2,000 to you.

 

If the account has been sold on then no such right of set off exists and the full amount of refund (£5,000 in your example) should come to you.

 

There have been a few cases where the original creditor has bought the account back in order to carry out a set off.