PPI nightmare

[Jubilympics]

Hi has this happened to anyone else? We were awarded a PPI payment of just under 6000. Eagerly awaiting the cheque I rang up to see where it was only to be told the money had been put onto the card to pay off the outstanding balance (4500) It did say this on the letter however; the debt on the card was passed to a recovery company (Triton). This led me to believe the card was no longer active and the debt lay with Triton, who I now know is part of the RBS group. I feel completely misled and robbed of my money! Is there any way I can get any of this money back?!

Did you have any intention of paying back the £4,500 you owed them?? I think that what they did was right - why give you the whole £ when you still owed them money??

I would have thought this was much better than getting the money to fritter away on something else. Better to pay off your debt with them no?

What have they done with the remaining balance?

Yes gin I am in a payment plan with Triton paying back the money at an affordable monthly amount. They are going to send me a cheque for the remaining balance (about 1400) I just feel robbed because this was money they took from me wrongly. I might not have be in all this debt if they hadn't taken it from me. And most of the money was to start a savings account, something which we have never had, not to fritter away.

I am pretty sure they will be entitled to offset the PPI refund against the money you still owe them.

Are you getting a cheque for the other £1500?

cross posted, see you are getting the rest.

TBH the usual advice is not to start any savings until you have paid off your debts, since the interest you are paying on debts will far outweigh the interest you are earning on any savings. I can understand your disappointment but I do think they are entitled to do this, sorry.

I do think the made the best decision. This way, its one less debt payment you need to worry about, and £1400 is better than nothing, surely?

Not being mean, just realistic.

given the high APR on credit cards and the low interest on savings accounts, you will be much better off longer term with the debt gone.

At least this way, you can now borrow if you need to, AND have back the amount you were paying the CC company to build up your savings, alongside of the £1500 they are sending you directly.

I know it's a bit pants, but honestly, I think you've saved yourself a lot of money! If it helps, you could always work out what you're paying in interest over the terms of your payment plan for your CC and then feel smug that Triton will no longer be getting a penny of it!

Sorry, didn't mean to come across as insensitive.

It is definitely better off paid on your debt rather than in your pocket. And £1400 is a good sum to start a savings account with.

It sounds like a win/win to me.

Your debt is paid off and you have a bit left over.

Yes, any upstanding debt is paid off first.