Can I Get A PPI Refund If I Owe The Bank Money?

While a lot of PPI compensation claims are made on previous loans and financial services, there are plenty of people out there wondering whether they could be eligible for a PPI refund while owing money. If you’re in this situation, it’s important to understand that this can ultimately depend on the situation that you find yourself in.


If you owe the bank money, there is nothing stopping you from making a claim for PPI regardless of the status of the loan or credit in question. For those who are paying off their debt in regular payments, making a PPI claim for compensation is as simple as any other payment claim. If you are successful, you will receive your compensation in the form of a cheque.

For those seeking a PPI refund while owing money for an account in arrears, however, you may find the compensation process slightly different. Regardless of the reason for your arrears, you may find that you won’t receive the money directly due to the Set-Off Rule. While it can be frustrating, this rule is in place to allow banks to direct any compensation you may be owed into your account to pay off the arrears owed. Additionally, if you have multiple accounts with the same bank, for example, the Set Off Rule can allow your bank to transfer your compensation from one account to pay off another.

What If I Am Still With Said Bank?

For those with accounts with the same bank, the above applies. If you have an account that is being regularly paid off with no arrears or missed payments, you will receive your PPI refund in the form of a cheque. From here, you can determine what you do with that money. However, if you do owe arrears for your debt, you may find that the bank directly puts the money towards your arrears before awarding you with what is left of your compensation.

The PPI mis-selling scandal has affected thousands of people across the globe and banks have set aside billions in order to cater for the oncoming claims before the deadline in August 2019. If you are unsure whether you qualify for PPI compensation, the following criteria constitutes a mis-sold policy:

  • Your lender added PPI to your loan or credit policy without your knowledge or consent.
  • Details or clauses of the policy were kept hidden from you, or you were unaware of certain terms related to the claiming of PPI if it was needed.
  • You were sold PPI despite being ineligible for a claim. This applies to self-employed individuals, part-time workers, contract workers, medical conditions, mental health conditions, an age limit and students.

Here at MoneyBack PPI, we are happy to aid those who require assistance with their claim. We can guide you through the process and help you determine whether you are be eligible for a claim, even if you’re still paying off debts. For more information, get in touch with a member of our expert team, today.