PPI and set-off issue

[Figgydoody 1]

Hello all!

 

My question is,

 

if I make a claim for PPI against a credit card that I defaulted on back in 2006,

that is still with the OC,

are there any arguments that can be raised to prevent them off-setting any settlement sum against the outstanding debt?

 

I haven't paid or acknowledged the debt by the way.

 

All thoughts appreciated!

 

Figgydoody.

[ims21 4,046]

If the account is still with the OC then they do have a right of set-off.

 

The only slim chance is if you can prove hardship but that will only be a slim chance.

[i hate bailiffs 325]

Hello all!

 

My question is, if I make a claim for PPI against a credit card that I defaulted on back in 2006, that is still with the OC, are there any arguments that can be raised to prevent them off-setting any settlement sum against the outstanding debt? I haven't paid or acknowledged the debt by the way.

 

All thoughts appreciated!

 

Figgydoody.

 

If you have not paid or acknowledged the debt it is statue barred or very nearly

[Figgydoody 1]

Thank you for the replies.

 

What exactly would you have to prove re hardship? And why would it only be a slim chance on the hardship argument?

 

I was thinking along the statute barred lines, because if the debt is no longer enforceable then that extinguishes their right to set-off surely?

 

Figgy.

[dx100uk 9,693]

only if you are in Scotland [5yrs]

 

in E&W even if the debt is SB'd it still means it 'exists'

 

so the OC can off set.

 

dx

[ims21 4,046]

Yes as dx says.

 

Remember Statute Barring only means that court action cannot be taken for the recovery of a debt. All other methods are effectively still open.

[Figgydoody 1]

Okay, so if the statute barred argument won't prevent them from off-setting, will the hardship argument prevent them from doing it?

[ims21 4,046]

Okay, so if the statute barred argument won't prevent them from off-setting, will the hardship argument prevent them from doing it?

 

As said there are no guarantees but you could try it.

 

How much is the debt and how much is the PPI claim?

[alienskumm 1]

If you try and claim the PPI there is a chance, because it is sorted out by different departments, they will send a cheque anyway.

 

At this stage what have you got to loose, you don't have the PPI money, you do have a debt. If they use the money to pay towards the debt you will have a smaller debt, if they send a cheque, great, it doesn't matter how old the debt is it still exists.

 

I have successfully claimed PPI from 3 different lenders ALL of the loans were in default at the time and ALL sent me refunds by cheque, in fact the Tesco Loan PPI refund letter advised me they were going to use the money to pay towards the debt but I received a cheque in the post the next day.

 

Go for it, you've got nothing to loose.

 

AS

[Figgydoody 1]

I wasn't thinking that there are any guarantees, just looking at what arguments might be raised.

 

I have more than one credit card that is still with the OC but they were all defaulted on in 2006. Why are the amounts of the debts and PPI relevant, surely if the hardship argument can be proven it isn't contingent on the sums involved, or have I misunderstood something?

[ims21 4,046]

Just following through really that's all.

 

If the value of the claim is greater than the debt then you will get the balance after any set off anyway.

 

As said by alienskumm, the department dealing with PPI might not notice you have a debt due to them. You might get lucky.

 

For hardship you would have to sit down and prepare and I&E statement to see what's what and then submit to the bank.

[dx100uk 9,693]

AK....loans are diff to credit cards.

 

on a loan you have actually paid the PPI.

 

on a credit card, if there is an outstanding balance

that will be part made of the PPI levied plus card interest

 

in effect it is NOTIONAL only as you NOT actually PAID it yet

 

dx