Thread: Right of ofset when debt has been sold? **Yes another win for PPI and against Offset charges**

Hi all,
I've ben claiming PPI for my elderly mum over he past 10 months from the BOS.A few days ago she received confirmation that they will award her the ppi back on both loans.Great I thought.However, in 2006 the debt was sold(assigned) to a debt management firm called caboot financial, after the great PPI wouldn't pay up after being made redundant.What the BOS are going to do is contact the debt management company and pay them them the funds.Apparently this their policy!! I'm raging. I would have thought that once the debt had been sold then BOS involvement would cease, end of.The CCA agrement was between my mum and BOS.BOS are culpable and at the very least give her a choice.They are the only accounts She has or had with BOS before the where assigned in 06.Also these loans are from 1999 and 2000 respectively - any loopholes there?
Is this legal? does it fall outwith ROS? where are mums rights and why should she be disadvantaged yet again. The most frustrating thing is that the money coming bak on the PPI would allow us to bargain the debt as we have had offers from Caboot saying give us X and that will settle the debt.The PPi figures individualy aren't enough to pay of each loan.
Any help would be appreciated as there must be something i can do.
thanks

Have you accepted their offer?

Did you include interest in the reclaim of PPI?

Gez

Morning Gez,

No i haven't accepted anything. They want a reply within 28 days either way.If they have the right of ofset then i'll have to think of the most beneficial way for my mum.

I've briefly looked at the figures and they have applied 8% on the total.I'm always very dubious of the first offer from the banks so I'm going to check the figures tonight.
Thanks
Dave

may i ask why the PPI did not pay out with redundancy

if that had paid out, prob no arrears and no cabot

Thanks for the reply on thorny matter. What i've read your spot on with the offset against other balances if you have them with the the lender. You can't have it all ways after all.The thing that bothers me is : is assining the debt actually selling the debt? I've spoken to Cobot about this when trying to source the CCA and they explained that they had only bought the debt and nothin else and that i had to speak to BOS. Apart from the CCA being supplied by the BOS and subsequent PPI awarded that is as far as BOS involvement should go. Breach of data protection for one.
If that is the case BOS have ,IMO, no right to inform them of any claim or monies due and they have. Monday morning my mum called them to try and see if they would take it as a total settlement and they could tell her more detail than she could remember on letters she had received on the Saturday and quoting that it will be paid within 28 days!!! how cheeky is that.
I'm taking your advice and rejecting the claim and querying the figures anyway asking for a better breakdow. I'll get the letters away over the next couple of days and update the call in due course.
thanks again

My mum was made redundant in 2002 and the loans where taken out in 99 and 00 repectively. Both had gold cover on them. When it became impossible for my mum to pay these loans she than applied for the cover to commence with obvious effect. When that happened BOS just rejected it saying my Mum had an illness that she had told them about and they still took the cover for the best part of 36 and 24 months respectively on top of given her the loans. The illness never stopped get from working anymore than a common cold would. We sent numerous letters, tried to get meetingset up but got a NO to it all with the bog standard letters as replies.
As you say, if they had covered the legal obligations we wouldn't be here right now. Is it that much to ask when you sign a legally binding contract, knowing the facts. If there was anyway i could get these 2 loans made unenforceable then i would.
Thanks

Evening all,
I followed up on the advice given previously and called the BOS about rejecting the offer and quoting few of their misdemeanours. During the chat they said they would speak to the collections dept and see if they could stop the money going to cabot and go directly to my Mum, leaving us to negotiate a settlement. Twenty minutes later we got a call back saying that they had stopped the cash going the cabot and would be sending out a cheque with the next 7 days.I'm not counting my chickens just yet but fingers crossed. I'll be back when the cheque comes and settlement has been completed to finish he thread. Cheers
Cheers Dave

AA, that is a good point and one i'd slipped up on. I'm hoping that we'll get correspondence by midweek!! if not I'll give them a call back asking for the above. Another interesting point though about the offset of balances is even if you tell the lender that you don't want their policy to apply because of whatever reason, they still go through with forwarding the monies to the DCA. How bad is that. That would mean the person involved going to the DCA and chasing the PPI up off of them. That can't be right under legislation surely.
I'll defo be keepin a close eye on this.
Speak soon.
cheers
Dave

AA, your words are coming true. I was expecting a letter thru from the BOS confirming what we had discussed but over a week later no letter!!
Spoke today on the phone and BOS said they where waiting on somehing to be agreed? that was the reason BOS gave for taken so long for the letter to be sent. Also, she said she told me it would be 21 to 28 days and not 7 to 14. I'm confused here as i don't see the need for the delay as we agreed, albeit, on the phone so what is the problem? They've admitted the misselling so deal with it.
I'm going to draft a chase up letter and demand a reply within reasonable time. I'm instantly suspicious as they have given us 28 days to agree the deal in writing and the time is ticking down.I don't want to sit on my hands here but i smell a rat.

Afternoon all
I'm just updating the post after a month of chasing the BOS they finally gave up the funds without all of it going to the DCA. The BOS wanted to give the funds to the DCA to offset against an outstanding Balance on 2 loans. However I called the BOS up and they agreed to refund the money to my mum to negotiate a suitable settlement with the DCA. That took over 28 days to come back from the DCA. I then had to chase up the Bank and after another 2 weeks of chasing they sent a letter out to stating that the cheque was on its way. Cheque arrived the following day and is now sitting waiting to clear.
So the moral of the story is, the banks do offset if you have debt on accounts. The may say its their policy to give the PPI refunded to the DCA but you can challenge this by saying that this policy places you in an unfair postion in that it doesn't allow you to negotiate or, an option, to negotiate towards a fulll and final settlement. I'll be trying to do this soon so i'll get back to you in what % we have to pay in the coming weeks.
Many thanks
Dave

I would say so!!