HELP - PPI fee's for money offset against debts

Hello

I would be grateful of some advice as I am extremely worried right now. So I'm one of these idiots that got drawn in by the Claims Guys as honestly didn't think I had any PPI so thought I would just leave it to them.

Anyway, I had a letter from Tesco last week with an offer of compensation but it turns out I had an outstanding debt which they will then offset the money against. I haven't accepted it as I don't remember details of the debt and don't want to admit involvement with this debt as it was about 13 years ago.

So then receive a letter from Claims Guys today asking for payment of fee's which is over £700. I assumed that as I will not actually be getting any money then I wouldn't have to pay them anything - this turns out to be wrong and they still want me to pay. I've honestly just been crying down the phone as I don't have that kind of money.

I asked what I could do and they said I could put in a complaint as I don't feel I was told about this. Is there anything else I can do? I'm really scared now as I'm a single mum with two kids and seem to have defeated the whole object of doing the PPI claim on the first place and am now going to get myself in debt!!

Help??

Thank you
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242
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    Ask if you can repay it in installments.
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    You can complain to the Legal Ombudsman, but did you tell the Claims Company that you still owed an unpaid debt to the institution you wanted to PPI redress from? If the Claims Company went ahead and knowingly complained on your behalf then you have a good case I think. If the Claim Company were not made aware that you had defaulted on this debt, then you now owe them £700.

    You say you "haven't accepted it", but there is nothing much to accept. The money awarded as redress on your mis-sold PPI has already been offset against your old debt.

    Looks like you have swapped one debt for another...
  • PJ78
    PJ78 Posts: 4 Newbie
    Thank you,

    To be honest I didn't remember having the debt otherwise I would have never pursued the claim. For whatever reason I have not been contacted about this debt for years and it is not on my credit file.

    The letter I had from Tesco and Claim Guys asked me sign a form to accept the offer, so I'm wondering if I don't then they can still ask for the fee?

    I just want to know what if I am choosing not to accept an offer then I can somehow get out of paying the fee?

    I feel such an idiot for just not doing it myself in the first place as I am now in a worse position than when I started!!

    I'm also worried that if I accept the offer then Tesco may go after me for the outstanding amount if there is any and I'm just not in a position to be paying it.
  • [Deleted User]
    [Deleted User] Posts: 35,242
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    What do the Claims Guys terms say about refusing the redress? I imagine they have covered it off and you'll be paying them anyway.

    If the debt is now statute barred, then Tesco won't pursue you for the remainder. And if it's, then be asking you to pay regardless.
  • dunstonh
    dunstonh Posts: 116,051
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    Anyway, I had a letter from Tesco last week with an offer of compensation but it turns out I had an outstanding debt which they will then offset the money against. I haven't accepted it as I don't remember details of the debt and don't want to admit involvement with this debt as it was about 13 years ago.

    They are allowed to do that.
    So then receive a letter from Claims Guys today asking for payment of fee's which is over £700. I assumed that as I will not actually be getting any money then I wouldn't have to pay them anything - this turns out to be wrong and they still want me to pay. I've honestly just been crying down the phone as I don't have that kind of money.
    They are also allowed to do that. Which is why this forum always says that you should not employ a claims company if you have ever had debts written off, defaulted or got arrears.

    Section F of their T&C:
    f. Compensation may be used by a Company to reduce any outstanding debt You owe them
    and You understand that TCG’s Fee of 30% plus VAT will be payable to TCG based on the total
    amount of calculated Compensation even if the Company does not pay the whole sum of the
    Compensation to You


    The letter I had from Tesco and Claim Guys asked me sign a form to accept the offer, so I'm wondering if I don't then they can still ask for the fee?

    They are still within their right to bill you.
    I'm also worried that if I accept the offer then Tesco may go after me for the outstanding amount if there is any and I'm just not in a position to be paying it.

    If it is as long as you say then they will not.

    I would suggest contacting the claims guys and coming to some arrangement. Perhaps on a monthly basis. You may also receive some money from Tesco as they normally only offset the capital element of the redress. You should still receive the interest element. That may cover the bill.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    PJ78 wrote: »
    To be honest I didn't remember having the debt
    It's a lot of money to forget about. If you truly forgot about it, how was it that you remembered to complain about the PPI?
  • PJ78
    PJ78 Posts: 4 Newbie
    The Claims Guys did the digging and found out about the PPI. I only remembered having a loan with Tesco at some stage, but not that I still had a debt. I know I sound silly saying that I don't remember the debt, but I don't, and am still unsure as to why I have not been contacted about it over the years as I have other products with Tesco.

    Tesco have only offered to offset this money against the debt, there was no mention of a separate interest payment - it all seems to be in one payment. Is this something I could pursue?

    Thank you
  • [Deleted User]
    [Deleted User] Posts: 26,612
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    PJ78 wrote: »
    Is this something I could pursue?
    If you still owe them money even after the redress offsets it, then it's very unwise to "pursue" anything.
    Tesco are under no obligation to pay you the interest element; this was something Dunston said might happen- not definitely will.

    What does the letter say, exactly?
  • PJ78
    PJ78 Posts: 4 Newbie
    I actually came on here for some advice, not to be bad mouthed for messing up in my life. Yes I made a mistake and yes it was a debt but as I said for whatever reason it had become statute barred. Please keep our opinions to yourself unless you actually have some advice for for me and just want an opportunity to be nasty! Im sure you are perfect and have made no mistakes in your life! I'm a single mum with two children and this has really shaken me up as I am now panicking that I won't be able to pay. Don't always judge people when you Dom not know the whole situation.
  • TrickyDicky101
    TrickyDicky101 Posts: 3,510
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    If you haven't got any money/assets then the Claims Guys can only do so much to pursue their debt with you. Have you contacted them to see if a suitable repayment scheme could be arranged?
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