The "Right of Set Off"

[Bill Shidding]

Hi, I have a case pending regarding a current account overdraft and a successful reclaim for PPI. Apparently, the Bank is not entitled to "set off" against sums owed to me under the reclaimed PPI. This didn't stop them trying to "Force" me into accepting the repayment to set off the current account balance. Unfortunately for them, their own solicitors confirmed that there is no connection between the current account and the reclaimed PPI.

I have now told them I want my PPI refund paid directly to me, as their representatives correspondence infers, but they have gone quiet again ( but I haven't).

I assume that the Bank only has the right to set off, when the set off is from a "clean source". ie current/savings account.

 

Bill

[Bill Shidding]

Hi Yourbank,

I used the word "force" because Nastywest would only refund the PPI against the outstanding balance of the current account. The regulatory risk department in association with the Kendal court operation had linked the two separate sums, and were not interested in any other payment destination/method.

Until they claimed the current account balance (in full) through the courts, this was deadlocked.

I pointed out (in my defence) that with my counterclaims for charges and the PPI, plus interest, they owed me more than I owed them. Their solicitors then said that the PPI was not linked in any way to the current account, and I should take it up with the bank. So, the bank thought they were entitled to set off, in total contrast to their own legal representatives' statement.

I have now written to the regulatory risk department with a copy of their solicitors letter. They are deafeningly silent. It doesn't bother me though, because it adds more gravity to my defence/counterclaims and unjust enrichment to boot. The Judge has stayed the claim 3 times already, because the claimant can't get their story/act together.

It is apparent to me, that the bank has been economical with the truth regarding their "right to set off". Despite the fact that I told them of my "first right of appropriation" 8 months ago. This was to inform them I needed the refund to keep my mortgage.

 

Bill

Edited April 4, 2009 by Bill Shidding

[Bill Shidding]

FROA on the PPI refund, which was a direct reclaim from me.

Bank accepted the PPI was mis-sold.

Bank stated the refund would only be credited to the closed current account.

Bank would not refund directly to me by cheque, as I requested.

I did not sign the F&F offer, because of this "term"

This "term" has been nullified because of the Banks' legal representatives' statement that there is "no connection between the current account and the PPI refund".

What the sols are saying is "You cannot use this PPI refund as a counterclaim against the current account claim, because the sums are not linked"

What the Bank is saying is "You cannot have the PPI refund, unless it repays the current account because the sums are linked"

 

Bill

[Bill Shidding]

hi, the way they normally do!

By ignoring it.

 

Bill