Offer of PPI settlement re Welcome Finance but Offsetting against debt

[Ems!]

Hi, hopefully someone can help me, I have done a search but can't see anyone with the same situation. (also - sorry - I originally posted in the wrong forum so have now added it here!)

We had a loan with Welcome with PPI which was then rolled over into a new loan with them, again with PPI. I wasn't sure if it was pre or post 2005 so contacted both Welcome and the FSCS. I have today had a response from Welcome so assume it was pre 2005. We have been offered a refund in the sum of £9,666.55 however, as the loan is still outstanding ( though no payment has been made for a long time), they are saying they are offsetting against the loan. It says the compensation will be applied as follows:

Adjustment to be applied to account ..... in relation to the proportion of PPI that remains unpaid: £3,407.44
Amount to be applied as a payment to reduce your outstanding liability for account... £6,259.11.

On a separate schedule, it shows that the amount of PPI added was £3,779.21, and interest of £3,997.16 was added, giving a total of £7,776.37. They say I paid back £3,364.06 of the PPI.

The letter also mentions several times that Welcome will enter liquidation on 1 November so any offer must be accepted by 28 October ( does this mean the loan would get written off then anyway?!)

So, I just wondered if there is anything I can do about getting at least part of the amount due in cash. Particularly relating to the fact that I have paid back just under half of the PPI so would I not then be entitled to the relevant proportion that I have paid back, in cash?

If it has to be offset so be it, but just thought I would see if anyone has any good ideas on this as people seem to have a lot of experience! Thanks!

[Amethyst]

Liquidation wouldn't mean the loan is written off - it would go to the administrators who would try and claim it from you.

How long have you not paid anything to the debt for ? Over six years ?

Obviously you shouldnt receive a refund for monies you haven't actually paid yet - so only the payments and interest charged on the sums you did pay to the PPI, any interest added to the loan due to the Ppi and statutory interest.

Your outstanding balance on the loan is £6259 ? Or is that the figure after the PPI was removed ? Or just the ppi refund figure to offset against the debt ?

[Ems!]

Liquidation wouldn't mean the loan is written off - it would go to the administrators who would try and claim it from you.

How long have you not paid anything to the debt for ? Over six years ?

Obviously you shouldnt receive a refund for monies you haven't actually paid yet - so only the payments and interest charged on the sums you did pay to the PPI, any interest added to the loan due to the Ppi and statutory interest.

Your outstanding balance on the loan is £6259 ? Or is that the figure after the PPI was removed ? Or just the ppi refund figure to offset against the debt ?

Thanks for replying. The current outstanding loan is around £15,000 so will be around £5,000 if they use the full PPI amount to offset. I have paid a lot more than £10,000 off the debt ( payments were £500 a month which I paid for around 5 years, I then hit hard times/got cancer), but they are saying that they used £3364 of my debt repayments against the PPI hence they see the outstanding PPI (and interest) as being £3,407. My query really is over the £3364 that I have paid off the ppi and interest - in my mind I should be able to get that back in cash (plus the stat interest thereon), but don't know if there is actually a basis for being able to do that?

[Amethyst]

Might be worth a chat with the financial ombudsman about it before deciding whether to accept or take it to the ombudsman - generally though it does sound like they'd agree with Welcomes method .... mention to the FOS about the liquidation issue too.

https://www.financial-ombudsman.org....olicy-mis-sold

[Ems!]

Might be worth a chat with the financial ombudsman about it before deciding whether to accept or take it to the ombudsman - generally though it does sound like they'd agree with Welcomes method .... mention to the FOS about the liquidation issue too.

https://www.financial-ombudsman.org....olicy-mis-sold

Thanks. That link looks really useful, I will call them tomorrow.

Also, realised I forgot to reply re length of time not paid - yes I think over 6 years. Does that change anything? I know there is a statute barred debts thing but I thought that was if they didn't acknowledge it - they send a statement once a year...