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PPI Payment and ESA
Hi, hope someone can help me.
We have a client in the office who receives ESA(c) plus an Income Rlated top up for Mortgage interest payments.
She has just been told that she has been successful in reclaiming missold PPI from her credit card provider.
The PPI is being paid via the credit card’s insurers to her credit card account at £1000 per month direct to her credit card, it is NOT being paid to her bank account. The Credit card now has a credit balance on it.
Does this count as income which she will need to declare? The fear is that if she loses ESA due to this, shew will be back to living off credit cards.
Peter
It is either income or capital—I’d be inclined to think it is cpaital, but the monthly payments could lead it be interpretted as income. How much is the total sum she is going to be repaid? Why is it being paid monthly? How much was her account in debit, at the point at which the payments started?
[ Edited: 17 Jul 2015 at 02:12 pm by paulmoorhouse ]
Why, indeed, is ir paid monthly? In my debt advice days, I recall that the money could only be witheld to pay off the balance of a debt. Instalments sounds very odd to me. Is it perhaps a PPI policy paying out, rather than mis-sold PPI?
Yes, that sounds much more likely!
Nah; not if the card’s in credit it doesn’t. Need to check correspondence from the insurers.
A grand a month sounds like a whole lot of PPi considering the average payout is £2800 (at least that’s what all the cold callers tell me before I inform them I got £4740 under my own steam)