Capital One, Lowells and FOS

[Jamesx81x]

Hi

My wife made a complaintt with the FOS over £440 in charges she incurred on her Capital One credit card.

After the FOS intervened capital one agreed to refund the £440 + £73 in interest to which my wife thought great and agreed.

Since then Captial One have informed her that the reund has been passed on to Lowells which they claim they sold the debt to, to reduce her oustanding balance.

To make things a bit clearer there was a limit of £200 on the card and when they added the charges it took it up to £640. Even if they had sold the debt on what right have Lowell got to keep my wifes refund after all it was a refund for the charges applied to her account. Even if they kept the outstanding balance of £200 which is perfectly ok as it will clear the balance should my wife still not be owed £240 + the £73 in interest offered?

She put this to the FOS but for some bizarre reason they seem to think everything is right, now Lowell are sitting laughing with a nice big cheque of my wifes refund.

Any help would be much appreciated.

Thanks

[Jamesx81x]

Anyone??

Just want to know if capital one and Lowells can do what they have done.

Thanks

[foolishgirl]

Not sure I fully understand your maths James. Are you saying that the balance owing on the card was £640 before your wife applied for the repayment of charges? If so & the FOS authorised a refund of £440 + £73, wouldn't the o/s balance now be £127.00? i.e. your wife still owes Cap1/Lowells £127.00.

[Jamesx81x]

Card limit was £200

£440 in charges were added taking balance to £640

Capital One sold debt to lowell but the extra £440 were still charges

Made a reclaim of charges through FOS to which capital one agreed.

With balance of card paid out of refund remaining should be £240 + £73 interest.

Capital One gave the refund of charges to Lowell so wife has lost out on refund as now they have it.

Basically the outstanding debt is only £200 with the rest charges and interest.

Hope the above is a bit clearer

thanks

[foolishgirl]

So my understanding is the balance was £640.00 (incl charges), the refund (incl int) was £513.00 - is that correct?

If so, that leaves £127.00 still owing to Cap 1.