halifax ppi refund query

[milly5]

Hi, I am asking this on behalf of a friend who is a cag member,hope someone can advise.

 

Friend claimed ppi through one of those companies and they have been successful! After they take their money friend should have around 2,000.00 BUT halifax are ignoring requests to refund the money,even though they have sent a letter regarding the ppi refund to friend.

But what she is most concerned about is that although the halifax main account is only in arrears by 30 pounds and is not being used[loan is repaid]she has a halifax credit card[account is in dispute and not being paid with a balance of more than 2,000.00.]

Can halifax use the refund money to clear balance on the credit card account?

Friend could really use the 2,000.00 to pay other bills etc and is worried that halifax could keep the money.

 

any advice very gratefully received.

[dx100uk]

sadly yes they can.

called offset banking.

dx

[milly5]

Yes I have heard about the legal right of setoff but Im not sure it applies in this case because as far as I am aware when you have a refund the loan provider has to put you back in the position you would have been in had you not had the ppi.

So if the ppi has already been paid in full then surely the customer should keep the money ,not the bank ?

I have read somewhere thet the only time the loan provider can keep the refund is if someone is in arrears with there account.

 

Please could someone confirm if I am correct.......

thank you.....

[pompeyfaith]

she has a halifax credit card account is in dispute and not being paid with a balance of more than 2,000.00.]

Can halifax use the refund money to clear balance on the credit card account?

 

This is why they are offsetting the amount.

 

But the question is can they do this while account is disputed ?

 

Im sure they cant but not 100% sure hopefully someone more knowledgeable will be along.

 

Regards

 

PF

[dx100uk]

as I am aware when you have a refund the loan provider has to put you back in the position you would have been in had you not had the ppi.

 

 

in terms of the loan/cc yes, but they are by refunding.

 

i likewise think i've seen alanalana intimate that it must go back to the person by cheque if the loan/cc is already dead,

but i also remember seeing a thread whereby the excess after clearing another a/c with the same lender was returned.

 

sadly i think its the latter.

 

dx

[dx100uk]

it appears that perhaps they cannot:

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/212494-ppi-but-they-paid.html

 

dx

[milly5]

Thank you dx100uk for your input ,I have had a look at the link you gave me and it appears Halifax will have to refund by way of a cheque !

 

Will update outcome ,

Thanks....Milly

[milly5]

Good news!

 

Yesterday the refund was paid into friends bank[halifax]

before they had chance to offset she withdrew daily allowance and hopefully will withdraw rest of refund today .

thanks for everyone's input ,my partner has similar problem with barclaycard I will post details later

 

milly

[milly5]

Final update ....

 

friend managed to withdraw total refund from halifax!

 

halifax either didnt have time to offset the refund or they had no intention of offsetting,either way it was a good result....

 

so I guess the moral of this post is anyone worried about their refund being offset against another account should get the money out as soon as it is paid in,just in case.

 

thanks for help and advice

 

milly

[pompeyfaith]

Milly,

 

FANTASTIC NEWS!!!!!!!!!!!!!!!!!!!

 

Well Done.

 

PF