Shop Direct Want To Offset PPI to DCA - help **WON paid Direct to me**

[Stacey30]

Hi,

 

I am new here and would like some advice as i am quite confused.

 

I had a PPI claim with Shop Direct upheld by FOS.

My account was sold on to Lowells whilst in a debt management plan, of which i still am.

 

Lowells are not a partner of Shop Direct and they have confirmed to me that Shop Direct no longer own the debt.

 

Shop Direct have wrote to me to say they will offset my refund straight to Lowells.

 

I was under the impression that as the debt is no longer Shop Directs as they sold it to Lowells then this cant be done.

Whilst querying this yesterday with the FOS the lady there told me as Lowells is a debt collection agency then Shop Direct can do this.

 

I am going to put in a complaint to Shop Direct to see if I can get the refund paid to me but just wondered if anyone has any knowledge on this.

 

I have a far more pressing debt in which this refund would have helped with alot, so hoping anyone with any advice would be able to help.

 

Thanks

 

Stacey

[Sidewinder]

You need to complain to Shop Direct immediately and state that you want the payment to be made to you directly.

 

The account is no longer with SD - it has been sold on and as such there is no right of offset. The FOS has a page which offers guidance on the right to offset:-

 

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

 

NOTE - "...the account from which the firm transfers the money - and the account from which the money would otherwise have come - must both be held with the same firm..."

 

Thus, in selling off the account to Lowlife, SD have no further interest in this account - it is no longer held by them therefore there is no right to offset

 

If they disagree, advise that you will put the matter formally to the FOS, and in doing so you must point out their own guidance

 

That would be my reading of it anyway!

[hillards]

Agree - we've just dealt with Shop Direct for duff charges they took, had to take them to court eventually.

 

Their solicitor said that there was an outstanding 'debt' that had been sold to Lowell and part of our complicated agreement for redress was that we would clear that directly with the DCA.

 

We wrote to Lowell, they wrote back, we've written again - as yet they have not given us a clear assurance that they will do as they are asked, they just say 'yes, pay us' - no way are we playing their silly games !

 

Tell SD they are wrong and they must pay you.

[Stacey30]

Thankyou both for your advice. I have sent a complaint just wait and see now

[fletch70]

The potential problem I see is that there may be clauses in the sale agreement allowing shop direct to buy back the debt or part of it. I do not necessarily agree with it however I am aware of it happening in several cases. I am afraid I do not quite agree with sidewinders interpretation of the old fos guidance for that reason.

I would though say it is worth a try.

[dx100uk]

matters not the FOS guidance is 'old'

 

 

its current policy

if it were not it would have been updated.

[dx100uk]

its also worthy to note that any buy back or offset clauses must be contained in the original T&C when you signed up.

[fletch70]

Dx

What you say about it needing to be in T&C's is generally correct but if there was no part about selling your debt on the account would be unenforceable anyway as they could not have sold it on. I was making a point that my interpretation is different to sidewinders and as you should know it does happen.

 

I also said that IMO I thought it was worth a try, they certainly should not be paying the money directly to Lowells which seems an idiotic business idea anyway. Just increases their paper loss

[citizenB]

It has been known for the original creditor to purchase the debt back then offset the PPI against the outstanding balance. Barclays and Capone are two that have been known to do this.

 

I imagine this is purely a paper exercise and nothing really changes hands.

[Stacey30]

Hi,

 

just wanted to give you an update on this.

 

Shop Direct did indeed buy the debt back from Lowells and offset the PPI comensation and then sold the debt back to Lowells.

 

I have gone back to FOS and they have agreed to re open my case.

 

Will post when I have some more news on this.

 

Does anyone know with FOS the timescale of looking at a re opened case. Not sure if im looking at a couple of years again?

[SabreSheep]

If they brought the debt back then you may be onto a loser here

[Stacey30]

I believe the same, but whatever the outcome I think its important to let people know. Nothing worse than never seeing an outcome on threads.

[Mike_hawk]

Did you receive any notice from Shopdirect or Lowell?, whether its a putback option within the heads of sale or not it still requires a notice of assignment to be given to the debtor. I wouldn't put it past either to conveniently forget...... not sure how interested the FoS would be in the legalities [probably not much] but if you ask it to reconsider and it goes against you I'd certainly request sight of any open documents its prepared to divulge to you before you sign on the dotted line.

[Stacey30]

I received a letter saying it would be offset, nothing to sign or to say i accept the decision.

 

 

Also, no notice from Lowells to say they recieved the money anyway.

 

 

To confuse things more Lowells have a third party acting for them which is NCO Europe who i make my monthly payments to on this account. But never had any paper work to confirm the offsetting has been received.

[citizenB]

At the very least you need to see a statement showing that the PPI has been deducted from the outstanding balance. Does it reduce it by very much ?

 

I suspect you would be looking at a good length of time with the Ombudsman

[SabreSheep]

What type of debt is this btw? credit card? catalogue etc?

[Stacey30]

It reduces it significantly. However I have a more serious debt which it would have cleared. It is a catalogue.

[SabreSheep]

ok then if they want to play dirty, so can you maybe.

 

If you have not already done a full subject access request and you know they have charged you for late payment fees then now would be the time to do it. they can be reclaimed as well

[Mike_hawk]

I recieved a letter saying it would be offset, nothing to sign or to say i accept the decision. Also, no notice from Lowells to say they recieved the money anyway. To confuse things more Lowells have a third party acting for them which is NCO Europe who i make my monthly payments to on this account. But never had any paper work to confirm the offsetting has been recieved.

 

Letter from the FoS or shopdirect?

 

Do you have the decision notice from the Ombudsman?

[Stacey30]

The letter was from shop direct. And I also have the decision notice from the Ombudsman.

[Mike_hawk]

Would help if we knew the dates of each [which came first], the delay between service of each and the content of the decision please.

 

Try the case studies from 118/7 onward to see if your circumstances fit any earlier Ombudsman decisions..... fair and reasonable are pretty much the catch all in instances such as yours and if you do fit you have a point of reference to throw back at the FoS should it disagree.

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/118/118.html

 

 

Make certain of your position prior to engaging with the Ombudsman though, get the argument right first time and you stand a better chance

[Stacey30]

Thanks for that i will have a read.

 

My case was upheld by the FOS in October 2014, letter was sent to me then confirming this and to wait for Shop Direct to be in touch. Shop Direct eventually wrote to me in February 2015, stating the amount to be awarded and they would be off setting against the debt with Lowells.

 

I wrote to Shop Direct and asked if it could come to me as I am in financial difficulty they rang me and said no, and they were well within their rights to offset.

 

I called back to the FOS asking them if it was allowed and they have decided to re open my case earlier this week.

[Mike_hawk]

Then i think it must beg the question of whether it was acting either fairly or reasonably be delaying redress and effecting its putback option in the knowledge that you were financially distressed. When the decision was upheld in your favour it had no commercial interest in any of your debts.

 

The Ombudsman will probably require sight of your personal finances prior to making a decision so it may be worthwhile getting together a copy of your bank statements for the period and your cra file to support your position.

 

The FOS use CONC as its source/ terms of reference [previously DISP]....... the fundamental principles of which are here http://fshandbook.info/FS/html/handbook/PRIN/2/1

[Stacey30]

Many Thanks for your advice, I have sent some serious debt paperwork to the FOS already, so will look forward to hearing from them.

 

I will post back with the outcome

[Stacey30]

Hi,

I just wanted to update my situation.

 

 

Shop Direct today agreed to send me the PPI refund direct by cheque.

 

I had a reposession order on my home and they agreed to pay me after asking them directly again.

 

 

The FOS started investigating and i can now end my complaint with them.

 

Many Thanks to people who gave me advice on this.

 

Stacey