EGG want to offset PPI against sold debt - **WON NO OFFSET**

[Rangers123]

Slightly complex claim here. I topped up an Egg loan at the beginning of 2007. The total cash amount of the loan was £9331 and the payment protection premium lent was £1730.85 with the total amounts payable at £10668.00 and £1979.04 respectively.

 

I subsequently defaulted on the loan and it was sold to various debt collection companies, ending up most recently with Arrow Global. They stated that the purchase balance of the account was £8193.79, down from the £11061.85 advanced by Egg.

 

Added to the complications, I now live in the USA. Restons for Arrow Global obtained a CCJ by default judgment against me and I applied to have it set aside once I found out about it. I ended up deciding to settle with them and we eventually agreed on £3000.00 in full and final settlement of the account.

 

So I have effectively repaid £5868.06 of the debt, plus whatever interest that I'm unable to calculate.

 

In the meantime, over a year ago I was sent a letter by Canada Square Operations asking me to complete a complaint questionnaire, as I belong to group of customers who MAY have been affected by a PPI policy being mis-sold. I never sent it as at the time I still owed the debt. The letter they sent noted that the debt had be sold on to another company and asked permission to contact them to find out the status of the debt.

 

Since I have now settled the debt I filled out the questionnaire and sent it off. I'm wondering what I can expect given the circumstances surrounding my case. I'm also wondering if they will respond to me at my US address?

[ims21]

Hi

 

As the account has been sold on then Egg will have no right of set off so any PPI redress should be paid to you.

 

I don't see any reason why they should not correspond with you overseas although you may have to send them evidence of your new address.

[Rangers123]

I think I've made a mistake.

 

I live in the US and have a CCJ for £1182 which has been secured with a charging order

against an interest in a property I own in the UK which was for an Egg credit card.

 

I submitted a claim for mis-sold PPI to Canada Square Operations for an Egg loan I also had.

They wrote back to me today saying that they've upheld my complaint and are offering £4589.25 before tax on the 8% interest.

 

Then I read this part:

 

As your account is still open, your account will be credited with £940.91 within 20 working days of our receipt of your acceptance form,

to put your loan in the position it would have been in had you not taken PPI.

 

My credit report shows the Egg credit card as 'satisfied' with the date satisfied listed as 5/05/2008.

The debt eventually ended up with Sigma Red Limited, who secured the charging order against my property.

 

In other words, the debt was sold on and Egg don't own it anymore.

My credit report says the default balance was £807.

Sigma Red are reporting the balance as £1436.

CSO as I said are setting off £940.91.

 

I gather they have no basis to do this, as the account is not still open as they said, and hasn't been for a long time.

There's one big problem. I just signed the acceptance form and posted it.

 

It'll take the letter a while to make it to them, perhaps I could send something by express to beat the letter I sent via standard mail?

 

Otherwise if they apply the funds to their 'open' account,

what happens with respect to the debt currently with Sigma Red?

Wish I'd not raced out to mail that acceptance back tonight.

[dx100uk]

if the debt they wish to offset against was sold and a third party got the CCJ/CO

 

they CANNOT off set

 

see the FOS website.

 

dx

[Rangers123]

Yes I wish I'd known that a couple of hours ago. The CCJ and CO WAS obtained by Sigma Red, not Egg. The problem is I signed the acceptance form. Am I completely out of luck now?

[dx100uk]

why not ring them?

 

Canadian square normally are very good.

 

dx

[Rangers123]

I will try them on Monday then.

 

I was just thinking - if I managed to quickly agree a full and final settlement with Sigma Red,

before Canada Square pay up,

they wouldn't then be able to set off the money would they,

if the debt was settled?

[citizenB]

This satisfied/settled note - is it on your credit file ?

 

This is usually means that the account has been sold on

- it is only settled/satisfied with the original creditor because they have received payment from the new owner.

 

IMHO, this is quite confusing for those reading their files as many assume that the account has indeed been cleared.

 

You might also want to establilsh why there is such a discrepancy in the figures that are being reported.

[Rangers123]

This satisfied/settled note - is it on your credit file ? This is usually means that the account has been sold on - it is only settled/satisfied with the original creditor because they have received payment from the new owner.

 

IMHO, this is quite confusing for those reading their files as many assume that the account has indeed been cleared.

 

You might also want to establilsh why there is such a discrepancy in the figures that are being reported.

 

I assume the figures vary due to interest and charges? Either way I still want to know if I've completely fudged it by signing the acceptance or if there's anything I can try to do?

[The Mould]

Yes, definitely send an e-mail immediately to the creditor and state therein that this communication of 26 July 2014 supersedes my letter dated __________(state the date) and all material served therewith is extinguished hereby.

Tell them in your e-mail, that the law requires them to place you in the position that you would have been in had they not mis-sold the ppi to you and that they have no legal right under the laws of England and Wales to place the loan back in the position that the loan would have been in had they not mis-sold the ppi thereon to you.

The law of restitution requires that you are compensated by being placed in the position you would have been in at the start of the loan and not the loan!!

They are taking the p*ss with their contention to put the loan back to its original position!

Kind regards

The Mould

[Rangers123]

I'm going to attempt to intercept the postman when he picks up from the postbox and see if I can persuade him to give me my letter back.

 

They don't even own the debt any more so where would the funds go?

 

To the agency that owns the debt now?

 

I want to resolve the debt but I was going to go about it a different way,

 

try to have the CCJ set aside and settle with them if I had to.

 

It seems this way they'll pay the £940 but I'll still owe all the extra in charges and fees.

[dx100uk]

I thought you said they WERE going to offset to the debt buyer...

 

so what actually did the letter say?

[Rangers123]

The letter says what I posted originally:

 

As your account is still open, your account will be credited with £940.91 within 20 working days of our receipt of your acceptance form,

to put your loan in the position it would have been in had you not taken PPI.

 

From that, it doesn't seem too clear to me. My account (with them) is not still open. They sold it on years ago.

[dx100uk]

then tell them so.

 

dx

[Rangers123]

Yes... I get that, my problem specifically relates to the fact that I've already signed their acceptance form. I'm trying to find out if there's anything I can do or if I've messed it up.

[dx100uk]

doubt it.

 

did what you sign [part] state about off set.

[Rangers123]

The part I signed and returned included this line:

 

I accept your offer of redress of £4589.25 as stated in the final response letter as full and final settlement of this complaint.

 

I understand that £1266.26 of the offer of redress above has been awarded as compensatory interest and £253.25 of that will be withheld for tax purposes and paid directly to HM Revenue & Customs.

 

I understand that the account will be adjusted by £940.91

 

I request that the money due to be is paid in the following form:

 

A cheque payable to Rangers123 for £3395.09

[Rangers123]

Anyone else able to help me with this? I have emailed Canada Square today.

[Rangers123]

This is what I sent:

 

Dear Ian Clark,

 

Re: My Egg Loan accounts 123, 456 & 789

 

This communication of 28 July 2014 supersedes my letter dated 25 July 2014 and all material served therewith is extinguished hereby.

 

I write with reference to your final response to my complaint (your ref: EGG/xxx) to which your investigation concluded that my complaint had been upheld and that consequently you would be refunding all premiums applied to my accounts together with contractual interest and compensatory interest in the total amount of £4589.25.

 

However, your letter incorrect states that my account is still open and £940.91 would be credited to it. Upon checking my credit report, I note that the status of my account with Egg is listed as ‘Settled’ with the ‘Date Satisfied’ listed as 15/05/2008. I therefore conclude that I have no open accounts with your company and therefore you have no right of set off so all PPI redress should be paid to me. The law requires you to place me in the position that I would have been in had you not mis-sold the PPI to me and you have no legal right under the laws of England and Wales to place the loan back in the position that the loan would have been in had you not mis-sold the PPI to me.

[Rangers123]

Does anybody know how long [email protected] takes to respond?

[Rangers123]

I posted before how my complaint to Canada Square Operations had been successful and they awarded me £4589.25.

 

They want to set off £940.91 to Arrow Global for a debt they sold them.

 

Incidentally, the letter they sent said they sold it to Arrow in May 2005 which isn't true,

that account wasn't even originally opened with Egg until 2006.

 

I have settled the debt with Arrow Global and had the CCJ successfully set aside.

Canada Square won't seem to budge on this.

 

Here's the latest letter they sent me:

 

Thank you for your recent correspondence.

I can confirm the adjustment amount is not being paid into an account open with Canada Square Operations.

 

The adjustment is being paid into your open account with Arrow Global Receivables Management Limited (Arrow).

 

Arrow took charge of the account in May 2005,

the information we received from them on 3 July 2014 indicated the account was still open and had an outstanding balance.

 

Consequently, your account will be credited with £940.91 within 20 working days of our receipt of your signed acceptance form

(and valid address change proof), to put your loan in the position it would have been in had you not taken PPI.

 

This is in line with Financial Conduct Authority (FCA) guidelines.

 

As a result of the adjustment mentioned above your monthly contractual repayments may change.

 

Arrow Global Receivables Management Limited will be writing to you shortly after the above adjustment has been completed to confirm

any changes to your monthly repayments.

 

Please accept our apologies for any confusion caused regarding the direction of the adjustment funds.

 

 

What can I do or say?

 

I have a letter from Arrow Global stating that this debt is settled.

Edited August 16, 2014 by Rangers123
Image of letter too small to read

[Rangers123]

Borrowing from old threads I pieced together the following email:

 

Dear Ian Clark,

 

Re: My Egg Loan accounts xyz

 

I received your recent correspondence (your ref: xyz) dated 11 August 2014 in which you state that you will pay a third party, Arrow Global Receivables Management Limited (Arrow), £940.91 of my total redress of £4589.25.

 

 

I do not agree with you 'adjusting' any part of my claim to Arrow or any other third party. Canada Square Operations no longer own the alleged debt and have no right to withhold monies in respect of it. Incidentally the alleged debt with Arrow has recently been settled to conclude the account with them, however if Arrow wished to pursue me for any amount they allege I owe them, then that is their prerogative, and between me and them, not the business of Canada Square Operations.

 

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 website which clarifies in layman's terms the rights of banks to take the action you indicated in your settlement: banking: firms' right of 'set off’. The information I’ve referred to can be found here:

 

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

 

Accordingly, unless you reconsider and agree to repay the full amount to me direct, you leave me with no option but to commence court action against you for the full amount claimed plus costs.

 

Yours sincerely,

 

[dx100uk]

threads merged

 

please keep to one thread

 

the FOS do not say they can offset get them to prove where the FOS say they can 'specifically'

 

You no longer own the alleged debt and have no right to withhold monies in respect of it. If [Enter DCA Name] 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: banking: firms' right of 'set off'.

 

Accordingly, unless you reconsider and agree to repay the full amount to me direct, you leave me no option but to start a court claim against[Enter Bank Name] for the full amount of my PPI refund.

[Rangers123]

So,

just shy of 3 weeks since I sent my last email to crt.pleaseassist and I've heard nothing back.

 

 

What is the court process?

 

 

Do I do the online money claim?

 

 

Can I use that service from the US?

 

 

It hasn't stopped other companies using it against me in the US in the past,

 

 

and the courts didn't care that I wasn't in the country

 

 

either when the boot was on the other foot.

[Rangers123]

Moderators, I know I have posted about this complaint when I was making it, but I believe this is a new issue now that I really need help with, and would appreciate if it was allowed to remain a separate thread.

 

To put it simply, Canada Square Operations upheld my complaint and awarded me £4589.25. They want to set off £940.91 to Arrow Global Receivables Management Limited, who they sold the debt to years ago.

 

I've written to them twice now, the first letter almost 2 months ago, with the text advised on here stating that they have no right of set off. I have not received any reply at all since then, except to say who they were setting off the money to and that they indicated the account was still open and had an outstanding balance (it isn't, I settled in full with them).

 

I just phoned the Financial Ombudsman helpline who wasn't sure, and said they'd call me back. They also said I needed to wait at least 2 months before they could do anything.

 

Caggers, what's my next step? I'm completely lost.