Just to confirm what candlewick has said, and elaborate a little. As the amount owed to RBS has reduced, then a variation needs to be applied to the DAS DPP. The amount of the ppi payment would be deducted from the amount of the rbs debt remaining to be paid under the scheme. The end result is that the rbs will get a little less each month and your other creditors will get a little more each month, and all debts will be repaid together but earlier than would have been the case.

You should speak to your money adviser about applying for a variation, dtr1002.

Thanks very much everyone, and Kevin most recently. Kevin said; "You should speak to your money adviser about applying for a variation". I would do this but frankly it feels like I have no control over how this will actually be effected by RBS. Will they simply offset against the debt and leave it to me to find out that they have done this, or will they offset against their debt then advise me about the remaining 'debt balance' at which point I should speak to my money adviser?

I still strongly believe that I should be able to direct these funds towards my mortgage arrears, given that RBS (and all the others) contributed towards my indebtedness through taking money illegally from me in the first place. It's a bit too cute to say "sorry about that" and then simply offset it against their own debt as a priority.

Thanks again.

Hi dtr1002.

I'm not sure anyone here will know what RBS's policy is on communicating when set-off has occurred.

It sounds like you have enough information to engage your money adviser on this now.

I would hope that RBS will send you something out confirming the amount of the funds they are refunding to you, albeit by means of set-off. If you don't receive confirmation of this then you should contact them and find out (or your money adviser may be happy to do this for you).

I wouldn't be surprised if RBS are still adding interest to the outstanding balance. A lot of creditors do so even though they will only have to write it off once you successfully complete your DAS DPP.

Just ignore any balance that they might suggest is still owed. The important thing is to find out the exact amount of the refund, so that this amount exactly can be deducted from the outstanding balance on the DAS system - it is only the amount outstanding on the DAS system that you will have to repay.

Hope this makes sense!