Can they Pay PPI refund to Credit Card Account

[Worried Sick2]

Hiya

Can anybody help us with some advice...

My friend has has an PPI refund offer from Royal Bank of Scotland but they will not refund direct to her, they want to reduce the credit card balance, the credit card is totally up tto date, never any late payments.

Can she request they pay her refund direct to her or can they refund it to the credit card.

Any advice would be appreciated, she need the cash desperately and just presumed with the credit card being up to date they would refund back to her.

Worried SIck2

[fairy dust 49]

Re: Can they Pay PPI refund to Credit Card Account

To the best of my knowledge ppi refunds are normally repayed either by cheque or into the claiments bank account .Think your friend should request refund payment into her account.

[berniel]

Re: Can they Pay PPI refund to Credit Card Account

Hiya

Can anybody help us with some advice...

My friend has has an PPI refund offer from Royal Bank of Scotland but they will not refund direct to her, they want to reduce the credit card balance, the credit card is totally up tto date, never any late payments.

Can she request they pay her refund direct to her or can they refund it to the credit card.

Any advice would be appreciated, she need the cash desperately and just presumed with the credit card being up to date they would refund back to her.

Worried SIck2

I am affraid that they are quite within their rights to refund into the account that the premiums were debited from.

The purpose of redress is to return the account to the position it would have been in if the premiums had not been paid.

However if the card is still in use and upto date she should have a reduction in her debit ballance so she would be able to re-draw the funds on the card.

Bernie

[Bill-K]

Re: Can they Pay PPI refund to Credit Card Account

I believe Berniel is correct, and you should then be able to use the reduced card balance.

There have, however, been some instances where the credit limit has been drastically reduced by the lender, who has simply given the reason "due to information received from a Credit Reference Agency." They have not said exactly what this information is.

[di30]

Re: Can they Pay PPI refund to Credit Card Account

Hiya

This normally seems to be the case, especially if the card is still active with an outstanding balance still owed.

However, I am aware that some will argue on this and if there are no outstanding arrears, no payments missed, they may want to use the money on other debt which could be priority.
Your friend could try and write and ask, no harm done there.

I understand interest (if any) though should be refunded directly back to the customer.

[Bill-K]

Re: Can they Pay PPI refund to Credit Card Account

Yes, it would do no harm to ask.

Sadly, the new FOS guidelines usually mean there is very little compensatory interest paid on credit card reclaims, now - but yes - they do still have to pay that directly to the claimant, I believe.