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  • FIRST POST
    • AdKM
    • By AdKM 20th Mar 17, 11:50 AM
    • 38Posts
    • 1Thanks
    AdKM
    Can I make a claim for miss-sold PPI on credit card I defaulted on and then settled?
    • #1
    • 20th Mar 17, 11:50 AM
    Can I make a claim for miss-sold PPI on credit card I defaulted on and then settled? 20th Mar 17 at 11:50 AM
    Hi all,

    I defaulted on 3 credit cards and 1 loan in the distant past. I had a £10k loan and £3k credit card with Egg and two credit cards with HSBC (£6k) and Barclays (£3k).
    All of those debts were sold to Moorcroft Debt Recovery and I settled with them when I came into some money. Moorcroft offered 40% off the outstanding debts to settle.
    To be quite honest I am so glad that this chapter is over and a line has been drawn under it, I have wanted to go nowhere near it again. I guess there is some fear that I will bring back into life something either dormant or 'finished with'.
    Here's the thing though, I know I was mis sold on at least two of those debts. I remember the person telling me on application that my application 'would be looked on more favourably' if I took out PPI. What would you do? I no longer hold the old paperwork and am reluctant to call up and stir this whole thing up again.
    I certainly don't want to use a company who'll take a fee to do it either.
    Could I make a successful claim? And if so would the payment be put toward the debt that was written off?
    Last edited by AdKM; 20-03-2017 at 11:53 AM.
Page 1
    • Moneyineptitude
    • By Moneyineptitude 20th Mar 17, 12:46 PM
    • 19,051 Posts
    • 9,169 Thanks
    Moneyineptitude
    • #2
    • 20th Mar 17, 12:46 PM
    • #2
    • 20th Mar 17, 12:46 PM
    You can complain about the PPI if you want, but any redress would be offset against the monies you failed to pay when you "settled" the debt.
    Banks use "in house" collection agencies, so the debt is not truly sold on.

    Of course, that pre-supposes that the Bank agree you were mis-sold. Your complaint reason is hardly compelling.

    All-in-all, probably a waste of your time unless you only want the satisfaction of having a mis-sale confirmed.
    • AdKM
    • By AdKM 20th Mar 17, 12:52 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    • #3
    • 20th Mar 17, 12:52 PM
    • #3
    • 20th Mar 17, 12:52 PM
    Thank you for replying.
    If I were successful though would I not be right in thinking that the debt was actually settled and thus any compensation due could not in fact be used to redress anything outstanding. Isn't a 'settled debt' exactly what it says?
    • Moneyineptitude
    • By Moneyineptitude 20th Mar 17, 12:58 PM
    • 19,051 Posts
    • 9,169 Thanks
    Moneyineptitude
    • #4
    • 20th Mar 17, 12:58 PM
    • #4
    • 20th Mar 17, 12:58 PM
    Thank you for replying.
    If I were successful though would I not be right in thinking that the debt was actually settled and thus any compensation due could not in fact be used to redress anything outstanding. Isn't a 'settled debt' exactly what it says?
    Originally posted by AdKM
    I refer you to my earlier response.
    • AdKM
    • By AdKM 20th Mar 17, 1:05 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    • #5
    • 20th Mar 17, 1:05 PM
    • #5
    • 20th Mar 17, 1:05 PM
    Moorcroft Debt Recovery would seem to be an independent debt recovery company and not 'in house' collectors of any bank or other lender. From a legal perspective the settlement I came to with Moorcroft bears no relation to whether I was mis sold or not by the original lender.

    I do appreciate that any claim I might make could be seen as 'taking the michael' though.

    I wonder if there are any precedents for a potential claim of this kind. I guess it comes down to case law in the end.
    • IAmWales
    • By IAmWales 20th Mar 17, 1:12 PM
    • 990 Posts
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    IAmWales
    • #6
    • 20th Mar 17, 1:12 PM
    • #6
    • 20th Mar 17, 1:12 PM
    The debt is only settled in so far as they agree to stop chasing you for it. It still exists, it's just been made dormant.

    I would question why you feel you are entitled to money you have not paid?
    • AdKM
    • By AdKM 20th Mar 17, 1:17 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    • #7
    • 20th Mar 17, 1:17 PM
    • #7
    • 20th Mar 17, 1:17 PM
    I do not think the debts do still exist. Moorcroft and I settled 9 years ago. Nothing is dormant. The only thing I feel I could legally be entitled to is compensation for being mis-sold. To my mind that is a completely separate issue to whether the debt was paid or not. I am interested in what the law would be. Not so much peoples subjective opinions on ethics.
    • barclaysbabe
    • By barclaysbabe 20th Mar 17, 1:18 PM
    • 11 Posts
    • 4 Thanks
    barclaysbabe
    • #8
    • 20th Mar 17, 1:18 PM
    • #8
    • 20th Mar 17, 1:18 PM
    AdKM I too had this problem. I had a credit card with MBNA, but my debt was transferred to Moorgate. MBNA wrote to me saying that they may owe me for mis - selling a product. I too did not want to rock the boat as I still had the outstanding debt which I was paying off. Sure enough they paid out, but as the debt was transferred to Moorgate they could not offset it against any outstanding debt. So they sent me a cheque and I paid them off. Same thing happened with BOS except I still owed them money and was paying it off. Once I knew they owed me money I called and asked they to pay it off against my debt with them. Again they said they couldn't and sent me a cheque.


    You have paid off your debt, so have nothing to lose.
    • AdKM
    • By AdKM 20th Mar 17, 1:22 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    • #9
    • 20th Mar 17, 1:22 PM
    • #9
    • 20th Mar 17, 1:22 PM
    "The OP has in fact paid 40% of his debt".

    I would argue that this statement is incorrect. I have settled 100% of my debt by reaching agreement to pay a 60% lump sum. 40% was thus written off. There is no debt left to pay. There is no debt that is lying there 'dormant'.

    What remains though is a person who was mis-sold a loan and credit card.
    Last edited by AdKM; 20-03-2017 at 1:32 PM.
    • barclaysbabe
    • By barclaysbabe 20th Mar 17, 1:30 PM
    • 11 Posts
    • 4 Thanks
    barclaysbabe
    "The OP has in fact paid 40% of his debt".


    BOS is my last debt to be paid off and I received my PPI money almost 2 years ago.


    OP you can still go ahead with the claim. They sold you something in which they should not have, you have paid 60%. They will calculate what you are entitled to. At the end of the day you still paid towards it
    • Moneyineptitude
    • By Moneyineptitude 20th Mar 17, 1:32 PM
    • 19,051 Posts
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    Moneyineptitude
    I dunno why you haven't just made your "complaint".

    What point arguing whether you've paid your debt?

    It's the Bank, not the internet, you need to convince.

    you have paid 60%.
    Originally posted by barclaysbabe
    He says he paid 40%.

    I'll leave you guys to it...
    • AdKM
    • By AdKM 20th Mar 17, 1:35 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    Not trying to convince the internet. Just asking if anyone else has been in the same boat as me. Looking for a precedent and advice that is all. If I feel the advice being given might not be accurate though I think it's ok to ask further questions.
    • AdKM
    • By AdKM 20th Mar 17, 1:36 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    I remembered badly. It was in fact 60% that I paid. 40% was written off. Sorry for any confusion in this respect.
    • dunstonh
    • By dunstonh 20th Mar 17, 2:25 PM
    • 88,811 Posts
    • 54,162 Thanks
    dunstonh
    If I were successful though would I not be right in thinking that the debt was actually settled and thus any compensation due could not in fact be used to redress anything outstanding. Isn't a 'settled debt' exactly what it says?
    A settled debt involves the lender agreeing to take a reduced amount in order to no longer chase you for full payment. PPI redress is allowed to go against debt written off against agreed settlements.

    Moorcroft Debt Recovery would seem to be an independent debt recovery company and not 'in house' collectors of any bank or other lender.
    Do you know that or is that a guess?
    Banks stopped using in-house collections many years ago and contracted it out to firms.

    Technically, if the bank sold the debt rather than contract it out to a collection agency then the PPI redress cannot be used against that debt. The exception being if the bank has the option to claw it back from the collections agency.

    I have looked at the FOS decisions and found several that show that despite HSBC using external companies, they still own the debt.
    1:
    "I note that HSBC has used different departments and even external companies to recover
    the arrears on Mr F’s credit card. However, HSBC has said that it still owns the debt.
    Therefore, it is legitimate for it to use the redress to reduce the arrears which Mr F owes."


    2:
    Mr D has said HSBC sold the debt to a third party. HSBC says it hasn’t sold the debt, but
    passed the collection of the debt to a company who is part of the HSBC group. Mr D feels as
    this third party is a company in its own right the debt is no longer owned by HSBC.

    HSBC has provided full evidence and details of the debt and although it has a third party
    collecting the debt this is done on behalf of HSBC. A business can instruct a third party
    business, for example sometimes solicitors, to seek recovery or repayment of a debt. That
    third party may be a separate entity but they do not when acting as collection agent own the
    debt. The debt is still owned, and would be paid back to, the business, in this case HSBC,
    who is owed the debt.

    Overall I think the amount HSBC has offered to refund the costs of the PPI is fair. I also think
    it is fair that HSBC uses the compensation against the debt Mr D owes on loan 5458
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • AdKM
    • By AdKM 20th Mar 17, 3:56 PM
    • 38 Posts
    • 1 Thanks
    AdKM
    Interesting. Thank you for that. The done thing now might be to try and ascertain if those original lenders did indeed sell the debt to Moorcroft or just use them as a collection agency. I think I'd much rather leave well alone though rather than risk potentially opening a can of worms. I have a lawyer friend who works for Barclays. I might ask him for his input on this before completely leaving it though.
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