Egg Loan PPI Advice Needed Please. **Resolved**

[Jedicris]

Synopsis

Took out £10000 loan over 60 months with PPI in July 2004. Hit financial problems in September 2008 and been paying on a free DMPsince then.

In March 2012 made a claim for Mis-sold PPI.

April 2012, Claim Upheld and Offered £21XX.XX + £38X.XX = £25XX.XXplus another sum for 8% interest.

What are theproblems?

1. They have offered £70X.XX for 8% interest. My calculations (using the spread sheet from here)show a sum of £10XX.XX, a difference of £37X.XX.

2. They have sent £28X.XX of my PPI to the DCA. Reason not specified. But their letter states, “As your account isstill open, in line with the Financial Services Authority guidelines and as aresponsible lender with a commitment to treating customers fairly (TCF) (sic), your loan has been credited with £28X.XX to put yourloan in the position it would have been in had you not taken PPI, as far aspracticably possible.” Is my accountstill open, they sold it to a DCA?

3. Transaction history from SAR shows that Loan wassold at a balance of 17XX.XX in July 2011. CRA shows this as the last balance on the balance history for Egg. However, DCA CRA entry shows Opening balance of £28XXwhich is original default figure. A difference of £11XX.

4. Reworking the loan without the PPI shows that theloan + interest total repayment would have been for £118XX.XX

5. The total of the payments I have made to EGG andDCA total £139XX.XX and DCA shows £15XX still outstanding meaning a totalrepayment of 155XX.XX This is £37XX.XXmore than the reworked loan. Evenoffsetting the PPI refund (minus the 8%) against this, still leaves anoutstanding amount of £11XX.XX. Presumethat £11XX of this is the DCA figures.

Can anyone make sense of this and advise course(s) ofaction.

Many thanks.

Jedicris

[dx100uk]

if the debt is sold they cannot offset!

 

dx

[ims21]

Hi

 

What is the name of the spreadsheet you used?

 

If the account was sold to a DCA then they cannot set off anything.

 

ims

[Jedicris]

The spreadsheet I used was this one: PPI Redress Calculation FOS Single Premium Policies.

 

I was sure that they couldn't offset but thanks for confirming.

[ims21]

Hi

 

This is the one you should use

 

StatIntSheet v101.xls

 

Compare the result of this one to the offer they have made.

[Jedicris]

OK, Thanks, Doing it now.

 

Jedicris.

[Jedicris]

OK,

 

That was in fact the same spreadsheet but I input all the figures into it - just to be sure - and got the same result.

 

Tries a few combinations to try and see how they got their figures but nothing so far.

 

Jedicris

[ims21]

Hi

 

OK can you post up the figures from the agreement please and a copy of the spreadsheet and I'll have a look.

 

Make sure you remove all personal information first.

[Jedicris]

Hi,

 

Agreement figures are:

 

Principal Loan £10000

Loan Payment Protection £2171.40

Total Amount £12171.40

Number of Monthly Instalments 60

60 Payments of £239.45

 

Spreadsheet attached

Eggloan StatIntSheet v101.xls

[ims21]

Hi

 

Ok first thing that leaps out is that you have put all 60 payments in there. If you went on a DMP, did you not make reduced payments?

 

Were there missed payments before the DMP?

 

ims

[citizenB]

If they have definitely assigned the account to a 3rd party, then they are not permitted to offset..

 

Regarding your suggestion that the refund will be set off against a debt now owned by NEW DCA, this is wholly inappropriate and unacceptable according to the Law of Property Act 1925.

You no longer own the alleged debt and have no right to withhold monies in respect of it. If NEW DCA wish to pursue me for any amount they allege I owe them, that is their prerogative.

 

The authority for my views is the case of Edlington Properties v. Fenner & Co. Ltd [2005] EWHC 2158 (QB) which affirms this position, that the assignor has no right of set-off to a third party (assignee) for a damages claim brought against it post-assignment, as any equitable set-off in this regard is personal in nature and the debt sold is not transferred subject to it.

 

Further information on the right of setoff can be found on the Financial Ombudsman’s site which clarifies in layman’s terms the rights of banks to take the action you indicated in your settlement letter. Banking: firms' right of 'set off'.

[Jedicris]

Hi Citizen B,

 

Thanks for that, will try to get that in the post tomorrow.

They have sold it. In amongst all the SAR info that they sent, are several entries stating that it has been sold to DCA.

 

Thanks

Jedicris

[citizenB]

There are two places where you have to put the new DCA's name in.. I couldnt get the colour option to work so that I could highlight them better

[Jedicris]

Hi ims21,

 

I had considered that amongst the various scenarios that I had run but didn't seem to get anywhere near their figures.

 

No payments were missed before going on to dmp.

 

Two examples attached.

 

Jedicris.

Eggloan StatIntSheet to DCA v101.xls

Eggloan StatIntSheet to Default v101.xls

[Jedicris]

There are two places where you have to put the new DCA's name in.. I couldnt get the colour option to work so that I could highlight them better

 

Thanks CitizenB

[Jedicris]

Hi CitizenB,

 

Letter off in post, so now just got to wait for response.

 

Jedicris

[ims21]

Have you received any previous rebate, perhaps if they cancelled the PPI when you defaulted on the loan?

 

How about letting us have the figures they have offered....a fresh paid of eyes may find something

 

ims

[Jedicris]

Hi ims21,

 

Many thanks, perhaps a fresh pair of eyes are needed.

 

Figures are:

Total PPI Premiums (a) £2171.40

Plus interest on premiums paid (b) £384.43

Plus 8% interest © £704.61

Total Award of compensation £3260.44

 

To me it all seems OK apart from the 8% interest.

 

Even if I only take the premiums up to when it defaulted, I still get £958.19 for the 8% interest on a total premiums paid for 49 months equaling £2093.20, instead of the £2555.83 that they have quoted.

 

If the loan had gone full term then total payments would have been 60 x £42.72 = £2563.20

 

Hope the fresh set of eyes can see past the kerfuddle.

 

Many thanks

 

Jedicris.

[ims21]

Hi

 

Just got in from work....will have some supper and play with some numbers a bit later

 

ims

[ims21]

Hi

 

Ok I've had a look and from the information available I reckon they are out by some £250 on the statutory interest too.

 

The figures for premium and the contractual interest are, I think, ok.

 

I would be inclined to write to them and ask for the breakdown of the figures...they should send you a schedule of the individual components. After all, if you were to take this to fos then that is what they can order to be provided so lets see of we can get it now.

 

ims

[Jedicris]

Hi ims21,

 

Many thanks for this.

 

Glad that I'm not imagining it and going dolally.

 

Letter of to them in the morning to ask for breakdown.

 

Many thanks again.

 

Jedicris

[Jedicris]

Hi Everyone,

 

Egg have responded to my letter about the difference in the calculations regarding the 8% interest and about the offest they have made.

 

Makes for interesting reading. They say that they have the right to offset EVEN IF the loan has been sold.

 

Letter posted to site.

 

Jedicris

redacted letter about eggloan.pdf

[dx100uk]

oh no they haven't!!!

 

if this is barclaycard admining it

they know full well they cant do that!!

 

dx

[Jedicris]

Hi dx,

 

This was from Egg not Barclaycard.

 

Jedicris.

[dx100uk]

sorry yes its a loan!

 

silly me

 

dx