What happens if you claim for PPI, it is settled. Then a DCA asks for payment

[alibobsy]

Just wondering what happens in that situation.

 

If you claim for a miss sold PPI policy and its upheld. The money can't be paid to the third party (the DCA) so is sent to you as a cheque.

 

BUT the DCA still ask for the money, can they claim it? Or do you state in dispute because of the PPI claim-do the OC have to buy it back in which case they may argue the refund was incorrect.

 

Hmmm just all gets a bit messy tbh

 

Ali x

[ims21]

Hi

 

If the debt has been sold to a DCA then the repayment should come to you and you decide how you want to spend it. The DCA can't claim it as such. They can persue you for the debt they bought.

 

If the DCA is acting on behalf of the OC and has not bought the debt then the OC can set the refund against the liability. This of course is subject as to whether the account is terminated or subject to notified arrears and will also depend on wthere it is a credit card or loan account

 

ims

[dx100uk]

it will also depend if the debt shows on your cra file and is not sb'ed too.

 

dx

[alibobsy]

So even though but for the PPI there would not have been any debt to sell on the DCA can still pusue a debt that really shouldn't exist?

And what about the default?

 

Ali x

[ims21]

Hi

 

Defaults are tricky to remove.

 

You would need to show that the default was directly attibutable to the PPI andat had the PPI not been included no default would have happened.

 

There was a debt due at the time of sale to the DCA. Your refund will come to you and you now choose whther to settle the account out of gthe refund or not.

 

ims

[alibobsy]

OK thanks IMS, so best bet may be to try to negotiate a low F & F out of any refunds if I can't drag things out to the point next year when it becomes stat barred (obviously any already SB'd or settled not a problem just got 2 like this).

 

Ali x

[Dot1]

Hi

 

If the debt has been sold to a DCA then the repayment should come to you and you decide how you want to spend it. The DCA can't claim it as such. They can persue you for the debt they bought.

 

If the DCA is acting on behalf of the OC and has not bought the debt then the OC can set the refund against the liability. This of course is subject as to whether the account is terminated or subject to notified arrears and will also depend on wthere it is a credit card or loan account

 

ims

 

Hi ims,

 

Sorry to jump in, the issues of where refund is paid is becoming very common.

May be you can address these issues for me:

Can OC pay PPI refund to a DCA on SB debt?

You mentioned that where the refund goes depend on the type of debt ie Credit card or Loan. What is the difference?

If OC insist on sending the refund to a DCA on a SB debt what can one do? Any idea of how to challenge it?

Any case one can quote or a template?

 

Looking around the forum, there are different results with majority of refund lately going to DCA on sold debts.

Thanks for and any advice is appreciated.

Dot

[alibobsy]

It is clear that the banks are using the offset rules and they only apply where both the debt and the credit so to speak are owned by the same company. So the crucial thing is has the debt been sold in full to the DCA or are they acting as agents to the OC.

 

I reckon the banks will try anything to avoid sending money to customers (and wonder if they have some kind of arrangement with the DCA's so no physical money gets transfered or a lessor amount is sent ie they let the DCA know a lower amount is owed and refund the difference in what was paid for the debt eg 5p in the £1 or whatever).

 

I would say most threads I have seen show the banks trying to pay the DCA, but if/when challenged the majority seem to back down and pay the individual.

 

Ali x

[ims21]

Hi ims,

 

Sorry to jump in, the issues of where refund is paid is becoming very common.

May be you can address these issues for me:

Can OC pay PPI refund to a DCA on SB debt?

 

DCAs who have been assigned a debt cannot be repaid by the OC

 

You mentioned that where the refund goes depend on the type of debt ie Credit card or Loan. What is the difference?

 

On a loan they can only off set against notified arrears...on a credit card they can set off against o/s balance (although with cards the practice does vary between banks)

 

If OC insist on sending the refund to a DCA on a SB debt what can one do? Any idea of how to challenge it?

 

See above...if the OC doesn't own the debt they cannot pay the DCA....you challenge it by demanding your money back

 

Any case one can quote or a template?

 

See fos website regarding set off...there isn't a template

 

Looking around the forum, there are different results with majority of refund lately going to DCA on sold debts.

 

If refunds are being made to DCAs where the debt has been sold to them then the claimant should challenge and demand their money back

 

Thanks for and any advice is appreciated.

Dot

 

Hi

 

See my answers in red

 

If a DCA is collecting on behalf of the OC i.e. the debt hasn't been sold then set-off is allowed because the OC still owns the debt

 

ims

[Dot1]

It is clear that the banks are using the offset rules and they only apply where both the debt and the credit so to speak are owned by the same company. So the crucial thing is has the debt been sold in full to the DCA or are they acting as agents to the OC.

 

I reckon the banks will try anything to avoid sending money to customers (and wonder if they have some kind of arrangement with the DCA's so no physical money gets transfered or a lessor amount is sent ie they let the DCA know a lower amount is owed and refund the difference in what was paid for the debt eg 5p in the £1 or whatever).

 

I would say most threads I have seen show the banks trying to pay the DCA, but if/when challenged the majority seem to back down and pay the individual.

 

Ali x

I agree. They seems to be using any excuse to keep the refund even when the debt is assigned to a DCA.

It is highly possible that they have some kind of arrangement.

Thanks Dot

[Dot1]

Hi

On a loan they can only off set against notified arrears...on a credit card they can set off against o/s balance (although with cards the practice does vary between banks)

ims

 

Hi ims,

Thanks for your reply .

In the case above, I take it that it applies to the OC only but not when already assigned.

What about a SB debt (loan)? Would that apply to it too?

 

Thanks Dot

[ims21]

Hi

 

If a debt is assigned/sold then no set-off can happen.

 

With an SB debt in England, it doesn't mean that the debt does not exisit...it only means that it cannot be enforced in court. So as the debt still exists then a set-off could be carried out.

 

In Scotland the debt is extinguished so if there is no debt then there can't be a set off in my opinion

 

ims

[dx100uk]

assigned typically does not mean sold

just assigned for collection

 

dx

[dx100uk]

just been doing some reading

it apprears assigned can mean two things sadly

 

but mostly, assigned seems to mean 'sold'

 

sorry

 

dx

[ims21]

just been doing some reading

it apprears assigned can mean two things sadly

 

but mostly, assigned seems to mean 'sold'

 

sorry

 

dx

 

Equitable and absolute?

 

ims

[dx100uk]

its diff to judge really.

 

i'm wondering if it has two meanings with debts

 

assigned to collect

 

and

you get leters that say:

 

LINK have sent a letter in the file dated 16th July2009, statng SALE OF YOUR DEBT, We, LINKhereby give you notice or intimation that FN, now known as GE money, hasassigned the benefit of the debt that you owe to them ("your debt")

dx

[Dot1]

Hi

 

If a debt is assigned/sold then no set-off can happen.

 

With an SB debt in England, it doesn't mean that the debt does not exisit...it only means that it cannot be enforced in court. So as the debt still exists then a set-off could be carried out.

 

In Scotland the debt is extinguished so if there is no debt then there can't be a set off in my opinion

 

ims

 

Thanks ims,

That is very helpful. I had a read at the link you gave and was very clear.

Depending on the ownership of the debt, it appears that OC just try their luck

Dot

[Dot1]

assigned typically does not mean sold

just assigned for collection

 

dx

 

Hi dx,

It looks like assigned means both. Sometimes when DCA are collecting on behalf of OC and also when it is sold to them.

I have seen in some Claim Forms, DCA states that the debt is assigned to them by the OC.

I take it they mean sold as they have to be the legal owners to take it to court.

Therefore, I think it has two meanings in debt collection.

 

Dot

[kaiter]

You would need to show that the default was directly attibutable to the andat had the PPI not been included no default would have happened.

[dx100uk]

i've never know a ppi reclaim to remove a efault.

 

but worth a try

 

dx

[Dot1]

Hello there,

 

I wonder if someone can guide me on this. In a case where PPI was claimed a few years ago and the bank without accepting liability, agreed to refund the amount with interest as a "goodwill gesture". At the time the debt was already sold to a 3rd party therefore, they decided to pay the money to the 3rd party instead of the me. Despite pointing out that they did not own the account anymore, they insisted and paid it to the new owner.

 

In light of the information in the above thread my question is:

 

Can I make a fresh PPI claim to the bank to refund me since they did not pay me or will it be a waste of time?

 

Your advice will be very much appreciated.

 

Dot

[dx100uk]

might be better to start your own thread, but you cant claim twice!

 

dx

[monstermind]

Hi

 

See my answers in red

 

If a DCA is collecting on behalf of the OC i.e. the debt hasn't been sold then set-off is allowed because the OC still owns the debt

 

ims

 

OK, I've received an offer from Santander, stating the refund of PPI attached to the personal loan will be used to repay any outstanding arrears. I paid a lump sum to a DCA as final settlement of the arrears (I was given a discount of approx £1.5k) and I don't know if the DCA were acting on behalf of Santander or if they'd bought the debt outright. Do you think Santander will/can offset the £1.5K?

[ims21]

OK, I've received an offer from Santander, stating the refund of PPI attached to the personal loan will be used to repay any outstanding arrears. I paid a lump sum to a DCA as final settlement of the arrears (I was given a discount of approx £1.5k) and I don't know if the DCA were acting on behalf of Santander or if they'd bought the debt outright. Do you think Santander will/can offset the £1.5K?

 

On loans they can only set off against notified arrears.

 

If the debt had been sold you would/should have received a"Notice of Assignment"

 

What does your CRA file show about ownership of the debt?

 

ims

[monstermind]

On loans they can only set off against notified arrears.

 

If the debt had been sold you would/should have received a"Notice of Assignment"

 

What does your CRA file show about ownership of the debt?

 

ims

 

Thanks for the quick and helpful reply.

 

I would need to get an up-to-date CRA report to check if the debt was sold, but I'm assuming it wasn't. I didn't receive a notice of assignment and from the wording of the correspondence from the DCA it sounds like they were acting on behalf of Santander ("we have been instructed by Santander to collect your overdue debt", etc), rather than as owners of the debt.

 

I did receive regular notifications of arrears right up until I began dealing with the DCA, the final notification was for £5390, and the DCA accepted £4k, so I'm assuming the remaining £1390 could be deducted from my refund.