**WON**Can a bank take back money paid through PPI?

[Fizz39]

Back in August my bank got in touch out of the blue saying I was owed nearly £6000 in PPI and paid the amount into my bank. Last week, they then rang saying they had overpaid and want half back!
Where do I stand with this? Do I have to give it back?

[Kati]

Re: Can a bank take back money paid through PPI?

tagging [MENTION=48934]Debt Camel[/MENTION] for advice xx

[Debt Camel]

Re: Can a bank take back money paid through PPI?

New one on me!

Have you already spent it?

[Fizz39]

Re: Can a bank take back money paid through PPI?

Sort of. I've booked someone to block pave our drive this month

[EXC]

Re: Can a bank take back money paid through PPI?

Back in August my bank got in touch out of the blue saying I was owed nearly £6000 in PPI and paid the amount into my bank. Last week, they then rang saying they had overpaid and want half back!
Where do I stand with this? Do I have to give it back?

First and foremost you need to ask for the request in writing.

Do you have any paperwork in relation to the £6000 refund?

[Fizz39]

Re: Can a bank take back money paid through PPI?

I asked for more information during the phone call and received the letter today. Yes I have the original letter offering me the money and saying it was a full and final settlement

[EXC]

Re: Can a bank take back money paid through PPI?

I asked for more information during the phone call and received the letter today. Yes I have the original letter offering me the money and saying it was a full and final settlement

Ok it woud be hepful if you could post up both letters (masking any persona info) or simply post up the relevant text.

[Diana M]

Re: Can a bank take back money paid through PPI?

Back in August my bank got in touch out of the blue saying I was owed nearly £6000 in PPI and paid the amount into my bank. Last week, they then rang saying they had overpaid and want half back!
Where do I stand with this? Do I have to give it back?

I suppose the good news is the bank has already admitted that they owed you 'something' for missold (?) PPI. From what you say you didn't make a claim. It was their inspiration to offer the refund/redress (have I understood that right?).

The not so good news is that they now say that they only owed you 'half of something'.

This may be a maths/quantum exercise. I've noticed a member on this forum (Turboman) is good with spreadsheets and PPI calculations.

Why not ask the bank to provide a 'before and after' breakdown of their PPI refund calculations and then run forensics over the bank's spreadsheets.

I suppose the the big question is why did they change their mind on the amount of the refund? On what basis?

Do you now bank with another bank so the 'PPI Bank' can't help themselves to the £3k?

Di

[Debt Camel]

Re: Can a bank take back money paid through PPI?

It is a shame the money isn't already spent .... http://www.thisismoney.co.uk/money/n...-mistakes.html

[EXC]

Re: Can a bank take back money paid through PPI?

From what you say you didn't make a claim. It was their inspiration to offer the refund/redress (have I understood that right?).

Yes it sounds like it and if so it might be slightly different from the examples in the This Is Money piece that Debt Camel posted, where the cases seem to be where customers had originally made claims.

It's likely that the bank contacted Fizz under the Root Cause Analysis provisions of FSA PS10/12 which require banks to pro actively contact customers if they find cases of mis-selling not complained of. As these are not complaint/claim responses and are not treated as such ie thay are not required to provide a calculation. As I understand it these compensation offers are made on a 'gesture of goodwill basis' rather than a refund based on a caculation of a refund due and if so might be more difficult for the bank to argue that they made a calculation error.

It wood be good to see the letters to clarify what basis the offer was made on.

[dogtired]

Re: Can a bank take back money paid through PPI?

I had a similar case. BOS/Sainsbury's, a very old card that I had been on a payment plan for. Found out about PPI and with help here claimed back via FOS.
They did try and say it was not PPI but "card care"
Whilst in the middle of this they decided to say I had been on the "plan" long enough and would not listen when I said I had this claim going through.
I then got a settlement offer saying that this was in full and final settlement any outstanding would be sent to me after paying off the balance, the cheque arrived three days later and again stated in full and final.
Almost at once started getting letters from DCA demanding almost all of this sum.
(Six in all *some twice) last in April last year from Arrow Global did a CCA and they returned the PO to say they were "Investigating and awaiting documents from the OC," nothing since.
Got a long thread on here all about it and someone mentioned "Unjust Enrichment" still not clear what that is.

[Amethyst]

Re: Can a bank take back money paid through PPI?

Once you have the breakdown of calculations to show where the error was made you should make a formal complaint and if the bank don't resolve to your satisfaction take it to the Financial Ombudsman. It would, as others have said, be useful to see the original letter offering the repayment of £6k so we can see the wording, and also the letter confirming that they want to reclaim £3k of it back, to help you word your complaint. The FOS deal with a number of cases where payments have been made in error - I can't see any with your exact situation on a PPI refund but quite often the FOS will determine that the money is not repayable, or repayable in installments. There's no question of whether you believed you were entitled to the payment, the bank told you you were in writing and you have no reason to disbelieve them.

Was the payment from the same bank that you hold your current account (or account where the payment has been stored) with ?

The decision we make in these situations is intended to provide a fair outcome for the particular case in question - reflecting its individual facts and circumstances. So the outcome might, for example, include one or more of the following:

the consumer must pay the financial business back all the money, but should be allowed to do so by interest-free instalments over time;
the consumer should receive compensation for the upset and inconvenience caused to them by the financial business's mistake;
the consumer is not required to pay the financial business back some of the money; and/or
the consumer is not required to pay the financial business back any of the money.

Unjust enrichment - is basically where you come out in excessive profit - most claims / refunds etc should put you back in the position you would have been in had the error not occured with reasonable compensation. For example had you had paid interest @ 9% on a debt that was deemed unenforceable, you should be paid that interest back, any directly attributable costs/loss plus any compensation for the inconvenience/hassle - but you wouldn't be paid the lump sum borrowed as that would be unjust ( as you already had it and spent it etc). (Not sure that actually makes it very much clearer lol and there have been cases where that has happened :P I'll shut up )

[Fizz39]

Re: Can a bank take back money paid through PPI?

I originally made a ppi claim years ago but was told I was owed nothing. Then out of the blue I got this letter offering me this money. It also said they had tried to contact me years ago but I never heard anything from them.

- - - Updated - - -

Then I got a phone call saying that I had been overpaid. I asked for a letter explaining why I had been overpaid and I got this

[Amethyst]

Re: Can a bank take back money paid through PPI?

Hmmmm. Bit short and sweet isn't it.


Maybe respond with something like this;

Thank you for your letter dated xxxxxxxxxxxxxxxx 2017. As you can imagine I am extremely shocked and disappointed to hear that you have miscalculated my PPI refund and wish to reclaim £2947.00. I am sure you will appreciate that this will cause difficulty for me. I would be grateful if you could send me a full breakdown and details of the original calculation and the revised calculation and explain to me where precisely the error has been made, so I may review your calculations and consider my position. I may consider making a formal complaint to HSBC, and asking the Financial Ombudsman to review the case, and consider whether you have the right to reclaim these funds from me, particularly considering you made the payment without any admission of liability for the original misselling of your Payment Protection Policy. Please note I do not consent to HSBC taking any funds from my account in relation to this matter.

(reword obvs as I've used far too many 'and' words )

And also, if I were you, send a formal Subject Access Request to HSBC to retreive all copies of documentation relating to your account, transactions and calculations.

Also if they offered you the same amount as they paid you, but two years earlier, I believe there should be a further two years interest to add to that amount....so I wouldn't trust their calculations at all.

[Fizz39]

Re: Can a bank take back money paid through PPI?

Thank you so much. That's a real help