Redress can be paid in a number of ways. Firstly, you may receive a cheque back for the amount of redress or it may be paid directly to your bank account. This could also happen if there’s a refund due when you cancel the PPI policy.
Sometimes, the lender may pay the redress directly to a credit card or loan account. If there are any arrears within your credit account then the lender may offset any redress against the arrears. If the arrears are severe and the lender has issued a “default” notice, they can use the redress to pay off your outstanding balance. Clearly, if your redress is greater than the outstanding balance then the remainder will be sent to you.
Sometimes, the lender may need to “restructure” your credit. By this we mean that it has to calculate what you would actually owe under your loan if you hadn’t been mis-sold a PPI policy. In this case, the lender will make an adjustment to reduce your loan balance to what it actually should be.
Depending upon how complicated your case is, the lender may have to pay compensation using a mixture of these methods. Don’t worry – we will be looking to see that any compensation is fair and reflects what you are entitled to! However your compensation is paid, our fee is based on the total Redress you are awarded. While we are not always in control of the manner in which the lender pays your redress, we are authorised to hold a Client Account into which redress from the bank can be paid. In this instance we will then deduct our fees and send you the balance so you won’t have to send us payment yourself.