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

[Rangers123]

Just had an email reply from the Ombudsman. They seem to disagree with the advice regularly given on here that PPI cannot be used to set off debt sold to a third party:

 

Thank you for contacting us today. My understanding of your complaint is that Canada Square have stated a portion of the settlement figure they have offered needs to go to a third party, Arrow Global. This company purchased the debt of the original loan the PPI was applied to. You arranged a figure, which you paid, to settle this debt with Arrow Global, and consider the debt to be paid. Please do contact us again if this is incorrect.

 

I have discussed this issue with one of my colleagues as I explained on the phone. As the settlement figure you agreed with, and paid to, Arrow Global was not equal to the outstanding debt sold to them, there is still a remaining balance on the account. Any redress for PPI paid by a business can be used to offset any debt in relation to the account the PPI was associated with. As there is still a balance outstanding in relation to the loan, it is reasonable for Canada Square to state some of the PPI settlement is to go toward this balance.

[ims21]

Point out to fos that their stance on this contradicts the information they are giving on their site.

 

There is no right of set off to a third party where a debt has been sold unless you have given permission for that to be done.

 

There is also case law on the right of set off which is Edlington Properties v J H Fenner & Co Ltd

[Rangers123]

Thank-you. I have pointed that out to them and included a link and copied the most relevant paragraph I could find on their website.

 

I feel like I'm banging my head against a brick wall. What is my course of action with Canada Square? I've warned them twice I will take legal action - should I now file a claim in the small claims court?

[rebel11]

Here's some info:-

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html

[Rangers123]

Thanks rebel11, that's the link I found and sent to the Ombudsman in response to their reply.

[SabreSheep]

Was that from an adjudicator at the FOS

 

doesnt sound right to me.

[Rangers123]

I called their helpline, explained the situation that my complaint had been upheld but they want to set off to a third party. The lady on the phone didn't know the answer, so said she'd call me back. Pointed out that I live in the US and asked if she could email back. So that's the email I received from them following up after my phone call. Don't think she was an adjudicator, just a rep on the helpline.

[Rangers123]

Am I taking this the right direction though by going to the FOB? I just want to have this sorted as quickly as possible, it's already been months since my complaint was upheld.

[citizenB]

As the FOS already have this in hand, then it might be worth seeing it through Ranger. It was approaching 3 years if not over that they took to settle my hubby's complaint with HSBC !!

 

If this were me, then I would be asking for it to be escalated to an Ombudsman proper. It is quite clear on the FOS website, what the bank can and cant do. As far as you are concerned you have repaid a full and final settlement and HSBC do not have ownership of the account any longer.

[Rangers123]

I found the Canada Square Operations number and called them.

 

 

The man I spoke to had a look at my file and said he was emailing his superiors to tell them that the account with Arrow Global was concluded.

 

 

He said they would contact Arrow Global and confirm that the account was closed and send both portions of the cheque out.

 

 

I pointed out to him that my business with the third party was neither here nor there in relation to money they've agreed they owe me,

and that I don't owe Egg any money.

 

 

He said he did not know about such matters and I'd have to call back Monday to follow up with his boss about this,

as he's only going on the guidance he'd been given, which was they'd always set off any outstanding amount.

 

 

Hopefully they'll just confirm with Arrow Global that the account has been concluded

(I have a letter from them to prove that it has)

and not delay any further in sending the cheque out.

[dx100uk]

first time I've heard of Canadian square even using offset let alone to a third party!!

 

 

I've done three to them

and even though there is an very large outstanding debt

still being paid to them,

 

 

my neighbour got eveyr penny of each one.

 

 

dx

[Rangers123]

I'll be so happy when I finally have the cheque in hand!

[Rangers123]

I see people talking about suing on here, is that the same as filing a claim with Money Claim Online?

 

I've called Canada Square Operations several times. They're maintaining that offsetting (they're calling it making an adjustment to my account) part of my redress to a third party (Arrow Global) is legal, and what they're required to do by law to put me back into the same position as I would have been without the PPI.

 

Can I file a claim with Money Claim Online for the total redress? It seems like my only option as I've exhausted all avenues with CSO directly.

[BankFodder]

Suing is exactly the same as filing a claim with MoneyClaim online. The MoneyClaim service is simply an online way of beginning the claim. It is much faster and easier than beginning a claim to sue somebody using the traditional paper forms and sending them off or taking them to a court and getting them processed over-the-counter. In fact over-the-counter court service is very difficult nowadays and some courts are insisting that you make appointments

[Rangers123]

So in this situation is this course of action appropriate?

[citizenB]

You will almost certainly find that HSBC will simply repurchase the account from Arrow Global and then offset it.

 

I will leave a message for those on the site team who understand this third party offsetting.. hopefully they will be able to provide more information for you.

[Rangers123]

Thanks, I appreciate that very much.

 

I thought Canada Square Operations were Citibank?

 

Can they still repurchase a debt that has been settled Full & Final?

[citizenB]

Thanks, I appreciate that very much.

 

I thought Canada Square Operations were Citibank?

 

Can they still repurchase a debt that has been settled Full & Final?

 

My Apologies.. I just assumed that it was HSBC, who I understand have their Head office at 8 Canada Square

 

Aha..yes.. you made a full and final settlement didn't you.. now that is a different matter I would think - let the guys on the site team advise further.

[Rangers123]

My Apologies.. I just assumed that it was HSBC, who I understand have their Head office at 8 Canada Square

 

Aha..yes.. you made a full and final settlement didn't you.. now that is a different matter I would think - let the guys on the site team advise further.

 

Appreciate it - thanks.

[dx100uk]

it is better now for the sakes of history

 

 

the three threads are merged now

 

 

as this is heading to court.

[Rangers123]

it is better now for the sakes of history

 

 

the three threads are merged now

 

 

as this is heading to court.

 

It may or may not be, I really don't know given that I can't seem to find the right info anywhere, and I've searched. Plenty of people simply say they can't do it if a debt has been sold to a 3rd party but nobody seems to know what to do if the bank still insist it can.

 

Could the title perhaps be updated to more accurately reflect the whole issue then, rather than the specific information I'm seeking at the moment?

[dx100uk]

yes that was my next move

 

 

sri got called away...

 

 

ims21 referred to the relevant info in post 27

 

 

 

 

 

 

dx

[Jedicris]

Think it might be worth popping in on this one.

 

 

CSO have a VERY bad habit of offsetting to third parties. FOS are currently in "discussion" with them about this, (my case being one of the several they are discussing). Unfortunately, FOS are not giving away any of the details of these discussions. You may want to consider adding to the FOS caseload rather then court action. I don't know which would be better but I'm sure someone on here will.

 

 

For Info, below is my last communication from FOS on this issue. This was September 2014.

 

 

I write in relation to your Payment Protection Insurance (PPI) complaint against Canada Square Operations.

 

I apologise that I am unable to provide you with any extensive updates on your complaint at this time. My senior colleagues are still investigating the approach that Canada Square has taken when paying part of your redress to the Third Party, Arrow, when it initially investigated your complaint.

 

Again, I am unsure of how long these discussions are going to take but as soon as I am able to provide you with a substantial update I will call you to do so.

 

In the meantime, please do not hesitate to contact me if you have got any questions.

 

Yours sincerely

[Rangers123]

Jedicris, that's extremely useful, given that you're in exactly the same situation as me. Do you think I should go ahead and sign the paperwork to at least get 75% of the cash and then refer the complaint to the FOS with regards to the set-off portion?

 

I'd love to keep in contact with your progress.

[Jedicris]

H Rangers,

 

 

Only you can decide which is best for you, you're the only one who knows your circs. I would be inclined to get what I can and then battle it out. Bear in mind that my case has now been going on for 2 1/2 years and no sign of it being finished yet.

 

 

Court may be quicker but then you have the hassle of upfront costs and preparing your case. For all I know FOS may decide next week and then you wont have to wait 2 1/2 years first. LOL

 

 

It might be worth firing another shot across CSO bows and mentioning the FOS investigation and that you will be including yourself in that investigation and see if it shifts them.

 

 

Good luck