KPMG trying to offset debt to Lantern

[jon8214]

Hi CAG, I have received a redress email from KPMG ref redress due to me from an old WDA account.

 

I did have an account with WDA which went into arrears and was sold to MM/Lantern. The debt is now stat barred and MM/Lantern have written the debt off as such.

 

kPMG are stating that they will set off the amount of my redress to MM/Lantern.  I have complained to them about this and await their reply.

 

I am aware of the normal set off rules but does this apply to companies in administration? I can’t attach the section of the letter now as I’m on holiday but as far as I’m aware a company cannot off set a debt once it’s been sold to a 3rd party company, am I correct in this thinking?

 

thanks

 

 

[dx100uk]

Depends if there is an outstanding balance.

You cant be refunded something you didnt pay.

 

 

[jon8214]

Cheers DX, what I paid was more than the initial loan 

[fkofilee]

Do you have it in Writing that Lantern have written off the account? If not then they can offset it. 

How much was the refund?

[jon8214]

I do have it in writing they have written it off, it’s approx £1k

 

even though I realise I’ll only get pence in the pound for it

Edited April 12, 2019 by jon8214

[fkofilee]

And the balance was closed to £0? 

If so - You are due that money.

There is no "Balance" to offset to. It would put the Debt Account into credit in this case. 

[jon8214]

Yes zero

 

Cheers FK, I’m gonna fight it

Edited April 12, 2019 by jon8214

[fkofilee]

What was the reason they wrote it off?

 

[jon8214]

Statute barred, after an SB letter from me 

[fkofilee]

Okay well then in that case - I would say fight for it

[dx100uk]

SB doesn't mean the debt is still not owed in E&W!!

 

dx

 

[jon8214]

I know that DX, but the thing I’m on about is a company trying to off set a debt against a debt that is now owned by a 3rd party

[Peterbard]

 

This may help:

But if the debt was sold on to a third party and it cannot be bought back, or the business chooses not to buy it back, we might take a slightly different approach. That is because the consumer does not owe the business money - it owes money to the third party that bought the debt instead.

 

When selling the debt the business made a commercial decision and accepted an agreeable price for the debt.

 

In those circumstances, we would usually tell the business to calculate the compensation as normal at the point it sold on the debt - and to pay all parts of the compensation to the consumer.

 

The business should also consider the possibility that the consumer might have incurred further losses since the debt was sold on as a result of PPI being included on their debt.

 

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

 

It is near the bottom of the page so you will have to scroll 

[Peterbard]

I would also say that under common law the obligation is still with the original creditor, as it is unaffected by the sale.

[dx100uk]

If he physically paid the sums they want to offset then no it must goto t to him.

but if its just notional stuff they wrote off then no.he is not entitled to it.

Jon..you indicate you paid more than the initial loan..what do you mean?

[jon8214]

The total of the loans I took was 1100 I paid back 2200 but I defaulted on 800 apparently, the amount of redress I’m being offered Is 1400 

[dx100uk]

total loans with interest was £1100 or was that what you borrowed and int is on top of the £1100..so what was the actual figure you should have paid if the loans had run their natural course and been paid on time?

 

this £800 could be these unlawful charges etc they levied at the time so you didn't actually pay them,

they are now after the ruling [like an IRL complaint] having to 'give them back' 

so £800 is not yours you never paid it, they simply levied it at the time...

 

the remaining £600 puzzles me, if they are saying they made you pay £600 too much then that's surely yours..you did pay it and they cant offset to anyone. if you get my weird logic

[fkofilee]

From my views here - When i wrote the IRL Guide originally i included the part about the FOS and their guidance.

It can be retrospectively used for IRL.

You should be entitled to all the money back.

 

But with the Administration are you actually going to get back £1400??

[Peterbard]

Yes, I agree, all money paid plus 8% on the premiums paid and any contractual interest due to the account being overdrawn (nominal account in credit)because of unpaid premiums,. 

[Guest]

If you make a fuss and insist the money is paid to you they may agree to save any hassle. 

 

If this redress was awarded through the FOS though, I'm certain they would have told the business to clear the debt they sold before any redress gets paid to you.

 

They have a different approach on Payday loans compared to PPI, it's about putting you in the position you would be in if you didn't take any loans out.

 

Lots of examples on the decision database of them deciding the lender should buy back the account or pay redress to the third party. I don't agree with it but it is the approach they take.