Santander PPI offset against debt, in hardship and mortgage arrears

[theygave]

Hi,

I have helped my partner make a PPI claim against a set of personal loans with Abbey (at the time). Santander offered £2.6k but would offset it against a defaulted debt of circa £3k (balance of final loan). Wrote back and explained that she is in financial hardship (mortgage and house in my name but mtg in arrears with a suspended possession order in the background) and sent them evidence of the arrears via a mtg co letter. Mtg arrears £1.4k, plus Council Tax subject to action of £480.

Santander have come back and sent a cq for £1.7k.

Spoke to them today and PPI dept put me through to collections dept. They found it difficult to locate details as file has been passed to Westcot DCA. I asked as to whether the sum deducted of £865 was the arrears up to default but they could not say, they just said that most people with an existing debt do not get anything atall so probably be grateful?

It may or may not be co incidence but the amount offered is 2/3rds of the original amount? Guess work to fob off someone?

Wondering if anyone else had experience etc. Worthwhile going to FOS or will she wait 12/18 months for them to go with Santander etc? Any suggestions gratefully received.


Thanks

[di30]

Re: Santander PPI offset against debt, in hardship and mortgage arrears

Hi there and welcome

If your not happy, then you could reject the decision made on the complaint and forward it on to the Financial ombudsman service (FOS) who would also highly likely suggest that any refund to be awarded to priority debt, such as a mortgage/council tax, gas/elec etc.

I have also recently advised a family friend who went through the same where (lloyds) wanted to use any refund to repay the debt owing that is also within the DCA, so with that, he went to the FOS who eventually agreed to put it in his favour for the money to be refunded back to him due to priority debts rather than the loan that was unsecured.
However it may take some time, unless your partner has grounds to request for fast tracking, such as an illness etc.

Feel free to wait for other opinions on this as well, but another suggestion before you decide to complain to the FOS is to write/email the Chief Executive Officer (CEO or Manager of the business) to explain the situation by giving them 14 days, then if you hear nothing or if nothing changes maybe then you could consider the FOS.

Hope this helps, good luck.

[theygave]

Re: Santander PPI offset against debt, in hardship and mortgage arrears

Thanks for that, I will have a mull over the weekend.

[Theoldbag]

Re: Santander PPI offset against debt, in hardship and mortgage arrears

If you want to PM me I have the email details for exec ppi team in santander

Might be worth a shot?

Cheers

[theygave]

Re: Santander PPI offset against debt, in hardship and mortgage arrears

Hi, Will do, I am flying out the door now so will send tomorrow.


Thanks

[theygave]

Re: Santander PPI offset against debt, in hardship and mortgage arrears

Thanks All,

Spoke to Santander and they have agreed to send out the balance by seperate cq so a success story for today.

[Theoldbag]

Re: Santander PPI offset against debt, in hardship and mortgage arrears

Nice one. Delighted for you