How do they repay?

[johnnymitch]

Hi telrac

 

They are using what is called 'Right of Set-off' which basically means they can transfer money between accounts to settle debts .

 

However there are conditions to be met before they can do this . Have a look at this link and see if you can fault them on any of the conditions ....

 

Right of set-off ...............

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

 

 

There is one which you may be able to use as a lever ......

 

"The debt must be due and payable. For example, if a customer misses making a loan payment, then (at least until it calls in the loan) the firm can take only the missed payment – not the balance of the loan."

 

In your case if you have no missed payments , IMHO - they can't do this, because , as you say that is a credit from a different account altogether . They are quick enough to point out that PPI is a separate entity if you're asking for details so you can claim mis-sold policies ........

[telrac]

Thanks Johnny, the link is very helpful and I think supports my case. I'm a Senior Legal Executive in a N.I. law firm and my boss has agreed to sign a letter on our headed paper calling for full rebate of monies and loan account to be restored to previous balance. Will tell them if not sorted within 7 days will be referring to FOS. Will probably end up having to contact fos anyway but maybe this is worth a try..... will keep ya posted!

[johnnymitch]

Happy to help , telrac - go get 'em !

[telrac]

Just got further message back from Egg saying that as this was a single premium policy it's not refundable to the customer and has to be paid to the loan account - does anyone know what they're getting at or are they just trying to confuse me?!!

[johnnymitch]

That sounds like gobbledegook to me . but hopefully aa or someone else more clued up than me can throw some light on it ........

[alanalana]

Just got further message back from Egg saying that as this was a single premium policy it's not refundable to the customer and has to be paid to the loan account - does anyone know what they're getting at or are they just trying to confuse me?!!

 

If it is a single premium policy it is even more mis-sold.( As they have acknowledged).

They are talking garbage about it not being refundable, if you have made all the payments and are not in any arrears or defaulted in any way then they cannot offset the PPI refund against any outstanding balance. As they have agreed it was mis-sold and were prepared to settle on £4,800 then that money if you were up to date with your payments should have been refunded to you by way of a personal cheque.

 

Write an tell them they are not allowed to do this. If they do not reverse their decision then if is time for a serious complaint to the Financial Services Authority and the Office of Fair Trading.

 

You should also seek advice from the legal forums on this issue there you may get further advice.

[telrac]

Thanks for the advice aa! Am very fired up about this, especially as have been on another consumer forum where a few other people seem to have come across this exact problem with Egg and as far as I can tell none of them have yet managed to get their money back in their hand although FOS are looking into things in a couple of cases. I notice in my T & C that it states the agreement will comply with laws of England & Wales unless the customer lives in Scotland or N Ireland (I am in NI) in which case the laws of that country apply. I'm now looking at NI statutes to see if I can persuade them that way - i also think this leaves me free to issue proceedings over here (which would be more hassle for them) if it ends up being necessary. Maybe I'm jumping the gun and will give them chance to respond to the solicitor's letter and FOS first but just v determined they will not get away with this! Feel like I have the money in my hand but can't get my hand out of the hole in the tree!!!

[telrac]

Reply to solicitors letter came in this morning - they are still maintaining they have the right to apply refund to the loan balance and the matter should be referred to FOS if still unhappy. T & C actually say "Except where otherwise provided in this Policy, all refunds of premium and genefits payable under this Policy shall be paid to Us for the credit of the Agreement" Nonetheless my boss (the Solicitor) says this does not apply in a case where the policy is missold as they still should be returning me to the position I would have been in if the policy not missold to me. He has written back stating this and also that a large part of the refund is made up of interest and compensation and it's not purely a "refund of premium". He's also drawn attention to the reference to being treated under NI law if the customer lives in NI and has asked them to nominate solicitors here for service of Proceedings...... will keep you posted!

[johnnymitch]

Thanks telrac - watching with interest ..... . I also believe your boss is right about the interpretation of the T & Cs ..... be interesting to see what a court would make of it ....

 

Haven't you got any friends who are judges telrac ? lol!

[telrac]

Thanks telrac - watching with interest ..... . I also believe your boss is right about the interpretation of the T & Cs ..... be interesting to see what a court would make of it ....

 

Haven't you got any friends who are judges telrac ? lol!

 

Most of them here you wouldn't admit to knowing anyway!!

[telrac]

An update... Wrote a general rant to a load of consumer champions and copied to Egg. They wrote back 30th july saying that since i had referred my claim to the FOS they would await their review. Rang Egg today for an update and not only was there no change but they said they had no record of having heard from FOS in my case!! I drew their letter 30th July to their attention but still insisted had heard nothing from FOS and file closed! Rang FOS and they were v sympathetic but said all they could really do was send their initial letter again and await the response within 8 weeks..... until I mentioned the letter sent by Egg on 30th July! The guy at FOS then said this constituted a 'final answer' by Egg and asked me to forward the letter and my complaints form and he would be able to deal with this immediately - also implied I should get my money refunded in full and account brought back to it's position prior to them crediting the refund against my loan balance. Hardly dare hope at this stage but keeping everything crossed.... Just shows what an awkward, non co-operative lying bunch Egg really are!! Will keep ya posted ;-)

[pompeyfaith]

I would imagine the FOS are able to deal with this quickly as EGG have already been fined a hefty sum.

 

Good result so far though well done.

 

PF

[alanalana]

Looking good for you. We live in hope that the FOS do their stuff. It could take a while but a 90% uphold on consumer complaints on mis-sold PPI seems ok to me

[troughmonster]

Hi

 

further to my previous posts about whether Egg would pay my mis-sold PPI back to me, or whether they would offset against my o/s debt, they actually paid me around £560 in the form of a cheque, so there is hope for everyone!