Welcome Finance PPI Claim FSCS

[jon8214]

Hi,

I applied for PPI from WFSL through the FSCS in November

 

just received their decision letter saying that yes they owe me PPI but because I owe WFSL an amount on another loan they will offset it.

 

WFSL have sold this account to PRA group for collection and it is also statute barred.

 

I have read on various threads that apparently the FOS has said that if a debt has been sold that the compensation cannot be used to offset the debt,

 

I have looked at the links in the threads but none of them take me to the relevant info and I cant find anything about it on the FOS website,

 

can anyone point me in the direction of where it states this on the FOS website

as I want to get all the information I can before I raise a complaint to the FSCS.

 

Thanks

[Guest]

this thread (and fos link #4) one for eg?

https://www.consumeractiongroup.co.uk/forum/showthread.php?479899-Can-HSBC-ppi-reclaim-be-used-to-pay-debt-sold-to-1st-Credit-**WON**&p=5056394#post5056394

[jon8214]

Thanks Ford that was exactly what I was looking for, now to raise my complaint with the FSCS. Thanks again

[cruzhughes]

If it’s welcome you won’t have nothing back cos of the scheme of arrangement they’ve entered into.

FSCS automatically offset.

 

My advice is chase to see if the purchasers have had the money.

 

In my case the purchasers reckon they didn’t have it and were chasing higher than owed.

 

I had already had it in writing last jan it would offset

 

yet money went Walkies for almost 6 months.

[jon8214]

but surely because of welcome not owning the debt anymore they cannot offset it legally? If the FSCS don't uphold my complaint can I take it to the FOS?

[dx100uk]

sadly not so with welcome.

 

the FSCS took on the welcome stuff and that's part of the waiver they signed up too.

 

now I would suspect that this 'other debt' IS linked to the one that they are refunding PPI from

so they can offset the 90%..

 

you need to tell us far more about your history with them please

 

dx

[cruzhughes]

Been there done that. All hands are tied. If you want to look at my thread feel free. Lots of stuff happened with me that’s probably not relevant to your case.

 

But sadly the only chance you have of getting money back from Welcome is pre 2005 ish.

 

Anything after it offsets.

 

Wait for dx he’s like a dog with a bone with Welcome

[Guest]

i see what you mean, #9 here

https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-for-welcome-financial-hn0qripj/#question8

[cruzhughes]

https://www.consumeractiongroup.co.uk/forum/showthread.php?467097-Welcome-secured-loans-charge-sold-to-Alpha-Prime-repo-received-bal-all-penalties-PPI-MIF-LIFE-PPI-or-IR-help/page9 Post 174

[jon8214]

DX

 

I took out a loan with welcome in 2007 with PPI

(I was unaware of the PPI at the time) on it

 

once that was fully paid off

I took another one out with them under a different agreement number without PPI.

 

The second one is the one I fell into arrears with and it was subsequently sold on to PRA group.

 

I have had a few letters from PRA

 

I have sent them the Stat Barred letter and have had no further contact from them reference it apart from an annual statement.

 

If you need any other info please give me a shout.

 

Cheers

[dx100uk]

so not a chain

and ideally should NOT be offset because welcome have already poss reclaimed the tax and poss been repaid via their insurance scheme.

 

but that all might not have happened.

 

reply with a POLITE but very brief letter to the FSCS asking the question

: that as the debt has been sold

:was not part of any chain of loans, i'e the refunded PPI was NOT directly related to the sold loan to PRA

:how can they offset your PPI refund as they [welcome] no longer hold the rights toward it to do so.

[jon8214]

Thanks DX

I am going to send the following to the FSCS

 

Dear Sir/Madam,

 

Thank you for your decision letter but I wish to contest the decision to offset my PPI against an unconnected outstanding balance.

 

I am aware that Welcome Finance has sold this debt to PRA Group.

 

The Financial Ombudsman Service has stated that in cases where the debt has been sold to a Debt Collection Agency then the monies owed cannot be used to offset the outstanding amount.

 

In light of this I request that the monies stated in your decision letter be paid to myself.

[dx100uk]

nope write what I said.

 

don't contest it

 

dx

[jon8214]

Thanks Dx

 

Have amend and emailed to FSCS

[Guest]

but surely because of welcome not owning the debt anymore they cannot offset

thats what i was thinking, seeing what the fscs q&a says about offsetting 'amounts of compensation payable will be first set off against any outstanding loan balances you may owe to WFSL'

but then there is the fos saying 'That is because the consumer does not owe the business money – it owes money to the third party that bought the debt instead' ie nothing outstanding to wfsl as such. the fos says it wld then go to the business, but in wfsl the business no longer exists so it is with the fscs to deal with?

but i don't know, the guys have the experience on it.

[jon8214]

Ford, Welcome still do exist but the scheme under the FSCS means that they can no longer provide new loans

 

They can and still do continue to receive payments for existing customers

[Guest]

Ford, Welcome still do exist but the scheme under the FSCS means that they can no longer provide new loans

 

They can and still do continue to receive payments for existing customers

[cruzhughes]

Thanks Dx

 

Have amend and emailed to FSCS

 

Send a letter too. They were useless responding to my emails

[jon8214]

well as a final update to this I got a reply from the FSCS saying that because of the waiver that welcome got the money goes to the DCA, but the account has been closed by PRA and I won't hear from them or anyone again and I have that in writing

[dx100uk]

A good win then

 

Dx