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Can refund of PPI premiums and interest be forwarded directly to a collection agency?

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  • #16
    Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

    Well replied asking for a full expalnation of the comments on their site, said how confusing it was.

    Comment


    • #17
      Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

      Would the payment of PPI be EXACTLY the amount that someone else is owed? Also, would there be any statute of limitations issues since this happened in the early 2000's? If the debt was sold OVER 6 years prior to the claim would the enforcement be dead and therefore the money not payable since Statute of limitations would invalidate it?
      "Family means that no one gets forgotten or left behind"
      (quote from David Ogden Stiers)

      Comment


      • #18
        Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

        You can still have a right of set off against a debt which is statute bared, the debt still legally exists - that argument is not going to help at all.

        Comment


        • #19
          Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

          Originally posted by Debt Camel View Post
          You can still have a right of set off against a debt which is statute bared, the debt still legally exists - that argument is not going to help at all.

          Would it be useful to get a breakdown of the PPI plus the breakdown of the amount that the debt buyer has got, ie amount that they received debt PLUS any charges levied against the OP?
          "Family means that no one gets forgotten or left behind"
          (quote from David Ogden Stiers)

          Comment


          • #20
            Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

            Not sure why that is going to help?

            Comment


            • #21
              Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

              Originally posted by Debt Camel View Post
              Not sure why that is going to help?
              Because a -b might not be 0. That's why. If the debt was say £2500.00 at point of sale then the PPI still has money that the OP is owed. Does my logic make any sense?
              "Family means that no one gets forgotten or left behind"
              (quote from David Ogden Stiers)

              Comment


              • #22
                Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                The set off is against what the debt is now, surely?

                Comment


                • #23
                  Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                  Originally posted by Debt Camel View Post
                  The set off is against what the debt is now, surely?
                  I'll phrase my question differently, is there an excess amount that is owed even after the PPI payment is taken?
                  "Family means that no one gets forgotten or left behind"
                  (quote from David Ogden Stiers)

                  Comment


                  • #24
                    Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                    Thanks for your recent email.

                    I’ve included some information from our website about how we approach this type of situation generally. But each case is looked at on its own individual merits once we’ve heard both sides, so I can’t say for sure what the answer would be in your case.

                    http://www.financial-ombudsman.org.u...e_the_consumer

                    where the consumer has fallen into arrears on their loan or credit card
                    Sometimes, consumers fall behind with their debt repayments. If they miss their payments for some time, then by the time the business compensates them for the mis-selling of PPI on that debt, the consumer could have some significant arrears.
                    In these circumstances, businesses often want to use the compensation to remove or reduce the arrears on the account before paying any compensation that remains to the consumer. Whereas consumers usually say they should be paid the compensation so that they can decide whether to reduce the arrears on this debt – or whether to do something else with it, for example, use it to repay other debts.
                    our approach
                    What is fair and reasonable will depend on the individual circumstances of the case. But we will first tell the business to identify whether any of the consumer’s arrears relate to the addition of PPI and, if so, to write off those arrears.
                    We will then consider what it is fair and reasonable for the business to do with any redress left over after it has restructured the consumer’s loan. We will take into account:
                    • the contractual position;
                    • what the law might consider is fair; and
                    • the consumer’s wider financial circumstances.

                    The regulator’s guidance to businesses handling PPI complaints says that where the consumer’s loan or credit card is in arrears, the business may use the compensation to reduce the consumer’s loan or credit card balance if it has the contractual right to do so.
                    Some loan and credit card contracts do include provision for this, but based on the cases we have seen, many do not. Where a contract does not include this provision, we take the view that this does not necessarily mean a business does not have the right to use some of the consumer’s compensation to deal with their arrears. In these situations, we will consider the wider legal position.
                    We take into account the law, which allows people to “set off” closely connected debts. This means that one person (A) can deduct from a debt that they owe another person (B), money which that person (B) owes to them (some businesses also refer to the “banker’s right of set off”, which is simply an expression of the legal right of set off – which may or may not apply depending on the circumstances).
                    We often decide that it is fair for the business to “set off” the compensation payable for the mis-sale of a PPI policy against the consumer’s arrears on their account – and remove or reduce those arrears. But we would not consider it fair for a business to require the consumer to reduce the balance below what would be outstanding now if the PPI had not been added.
                    However, if the business that sold the PPI (and is now compensating the consumer) is not the lender, none of these considerations will apply and the compensation should be paid to the consumer as normal.
                    There may be other circumstances where we might decide that a business should pay all of the compensation to the consumer. We might decide to do this, for example, where the consumer is able to demonstrate to us that they have arrears on other debts that are more serious or that pose a greater threat to them than the debt to which the PPI is attached. Another example might be where the consumer is able to show us that the other debts came about because they were paying the PPI on this debt.
                    I hope this helps, but if you have any questions, please feel free to contact us.

                    Yours sincerely

                    Comment


                    • #25
                      Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                      So they still haven't addressed the question of whether they can set off against a debt that's sold on to a 3rd party. Are you going to make a nuisanse of yourself and ask again?

                      Comment


                      • #26
                        Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                        I am indeed cause that's as clear as mud or to put it another way BS.
                        Am not sure how to put it simply enough so they can grasp the question without going onto the 'information on their website' bull that imo is very confusing.

                        I think it's this bit needs explaining
                        We take into account the law, which allows people to “set off” closely connected debts.

                        It's hardly 'closely connected' if it's been sold lock stock and barrel for buttons.
                        makes a complete joke of this statement too imo
                        '
                        • the account from which the firm transfers the money - and the account from which the money would otherwise have come - must both be held with the same firm.


                        What do you think?

                        Comment


                        • #27
                          Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                          This?

                          I understand that the right of set off applies to ''the account from which the firm transfers the money - and the account from which the money would otherwise have come - must both be held with the same firm'' [emphisis supplied]. I would appreciate clarification of your position with regards to firms who set off PPI compensation against debts which have been sold/assigned to a third party, in other words not the same firm.

                          Comment


                          • #28
                            Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                            Makes things simpler when you passed yer 11 plus, thanks xx

                            Comment


                            • #29
                              Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                              Ok I am losing the will to live with these people.
                              I asked the question below after getting some waffle all on post 24 on here, please tell me where I went wrong with the question lol

                              Thank you for your comprehensive reply it does expalin how you deal with PPI complaints on an individual basis.

                              I do understand the right to set off, what I am confused about and you have still not clarified is this from your website

                              · the account from which the firm transfers the money - and the account from which the money would otherwise have come - .must both be held with the same firm.
                              So I ask again if the debt is sold/assigned to a third party (in other words not the same firm) are the rules the same? If so can you explain those rules and how it works.

                              Thank you



                              This is the reply I got today to that very question
                              Thank you for your email.

                              Further to the information my colleagues have supplied and your response it does appear that you may wish to submit a complaint.

                              I have attached a copy of our complaint form and a PPI questionnaire, if you can complete both and return them to us we will be able to look into this further.

                              Yours sincerely

                              Comment


                              • #30
                                Re: Can refund of PPI premiums and interest be forwarded directly to a collection age

                                Ok I take it that are you speaking to them as yourself and not on behalf of LB. I think it might be an idea to say who you/we are and that we'd like to know in order to advise people asking the question.

                                Do you want me to draft something up?

                                Comment

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