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    • PJ78
    • By PJ78 5th Jun 17, 5:31 PM
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    PJ78
    HELP - PPI fee's for money offset against debts
    • #1
    • 5th Jun 17, 5:31 PM
    HELP - PPI fee's for money offset against debts 5th Jun 17 at 5:31 PM
    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
Page 1
    • zx81
    • By zx81 5th Jun 17, 5:36 PM
    • 13,192 Posts
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    zx81
    • #2
    • 5th Jun 17, 5:36 PM
    • #2
    • 5th Jun 17, 5:36 PM
    Ask if you can repay it in installments.
    • Moneyineptitude
    • By Moneyineptitude 5th Jun 17, 5:52 PM
    • 19,304 Posts
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    Moneyineptitude
    • #3
    • 5th Jun 17, 5:52 PM
    • #3
    • 5th Jun 17, 5:52 PM
    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
    • By PJ78 5th Jun 17, 6:10 PM
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    PJ78
    • #4
    • 5th Jun 17, 6:10 PM
    • #4
    • 5th Jun 17, 6:10 PM
    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.
    • zx81
    • By zx81 5th Jun 17, 6:36 PM
    • 13,192 Posts
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    zx81
    • #5
    • 5th Jun 17, 6:36 PM
    • #5
    • 5th Jun 17, 6:36 PM
    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
    • By dunstonh 5th Jun 17, 6:38 PM
    • 89,518 Posts
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    dunstonh
    • #6
    • 5th Jun 17, 6:38 PM
    • #6
    • 5th Jun 17, 6:38 PM
    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). 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.
    • Moneyineptitude
    • By Moneyineptitude 5th Jun 17, 8:06 PM
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    Moneyineptitude
    • #7
    • 5th Jun 17, 8:06 PM
    • #7
    • 5th Jun 17, 8:06 PM
    To be honest I didn't remember having the debt
    Originally posted by PJ78
    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
    • By PJ78 5th Jun 17, 8:29 PM
    • 4 Posts
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    PJ78
    • #8
    • 5th Jun 17, 8:29 PM
    • #8
    • 5th Jun 17, 8:29 PM
    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
    • Moneyineptitude
    • By Moneyineptitude 5th Jun 17, 8:56 PM
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    Moneyineptitude
    • #9
    • 5th Jun 17, 8:56 PM
    • #9
    • 5th Jun 17, 8:56 PM
    Is this something I could pursue?
    Originally posted by PJ78
    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
    • By PJ78 6th Jun 17, 7:55 AM
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    PJ78
    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
    • By TrickyDicky101 6th Jun 17, 10:06 AM
    • 2,690 Posts
    • 1,742 Thanks
    TrickyDicky101
    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?
    • PSW
    • By PSW 6th Jun 17, 11:11 AM
    • 43 Posts
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    PSW
    As the debt is so old I would look into seeing if you can find out if Tesco sold on your debt at some point. It's a very small chance, however if they did sell on your debt to a collection agency and there wasn't an agreement that future claims could be used by themselves they really should be sending you any PPI refunds.
    • Moneyineptitude
    • By Moneyineptitude 6th Jun 17, 11:44 AM
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    Moneyineptitude
    As the debt is so old I would look into seeing if you can find out if Tesco sold on your debt at some point.
    Originally posted by PSW
    Obviously this won't be the case if the Bank have already said they are offsetting. Such research of the debt history would therefore be utterly futile.

    if they did sell on your debt to a collection agency and there wasn't an agreement that future claims could be used by themselves they really should be sending you any PPI refunds.
    Originally posted by PSW
    Why would the Bank sell on the debt without such an agreement and now be informing the OP that they are offsetting the debt against the redress?

    The OP needs to be concentrating on her new debt to the Claims Company, not chasing unlikely hypothetical scenarios...
    • PSW
    • By PSW 6th Jun 17, 3:50 PM
    • 43 Posts
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    PSW
    So are you saying this "unlikely hypothetical scenario" has never happened?
    • Moneyineptitude
    • By Moneyineptitude 6th Jun 17, 11:06 PM
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    Moneyineptitude
    So are you saying this "unlikely hypothetical scenario" has never happened?
    Originally posted by PSW
    Are you saying it has? If so, please provide examples..
    • PSW
    • By PSW 7th Jun 17, 1:40 PM
    • 43 Posts
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    PSW
    I find it a waste of everybody's time getting into the "answering a question with a question". Yes I have seen similar occasions on other forums and on the FOS website. I will grant you it is rare however, as I stated " it's a very small chance" so I feel it would be worth an hour or two of the OP time checking it out whilst concentrating on her new debt.

    How many time have we seen on this very forum people are told not to bother, don't waste your time and yet they still manage to make a successful complaint? Enough times for me to think its worth a punt.

    Maybe its just me who has faith the OP is able to do more than one thing at a time.
    • Moneyineptitude
    • By Moneyineptitude 7th Jun 17, 10:31 PM
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    Moneyineptitude
    as I stated " it's a very small chance" so I feel it would be worth an hour or two of the OP time checking it out whilst concentrating on her new debt.
    Originally posted by PSW
    I'd like to know how the OP is going to find out if her old debt has ever been sold on to a Debt Collection company and, in addition, whether there was any agreement for future offset of PPI complaints?

    I stand by my original assertion that your suggestion is a very unlikely hypothetical scenario.

    Just a short time ago you had never heard of such off setting:

    Learn something new everyday, I wonder how widespread this is? (I'm guessing not very)

    I had read somewhere that some lenders were trying to buy back previously sold debts so that they could offset ppi refunds
    Originally posted by PSW
    http://forums.moneysavingexpert.com/showthread.php?p=72588539
    • PSW
    • By PSW 8th Jun 17, 10:48 AM
    • 43 Posts
    • 29 Thanks
    PSW
    To start, I would search any old paper work to see if the OP can find notification of the debt being sold.

    I'm not sure what relevance or point you are trying to make
    Just a short time ago you had never heard of such off setting:
    I notice you avoided answering my question again, not to worry though.
    • Moneyineptitude
    • By Moneyineptitude 8th Jun 17, 11:06 AM
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    Moneyineptitude
    I notice you avoided answering my question again, not to worry though.
    Originally posted by PSW
    There have indeed been several instances were a poster with an apparently weak complaint has returned to report success. However, no one on the forum can comment on anything other than the information provided in posts. Complaint handlers have access to a much fuller picture and complaints can be upheld for entirely different reasons to those provided by the complainant.

    As to your suggestion that the OP should search old paperwork, I think it's clear from the OP not even being aware of the debt that such paperwork is not in her possession.
    Regardless, a notification letter that the debt was to be sold on will not reveal details of any PPI clawback terms.

    The Bank have already informed the OP that the redress will be offset against the outstanding debt. The Op needs to focus on the new debt with the Claims Company.

    I'm not sure what relevance or point you are trying to make
    Originally posted by PSW
    I think the inference was pretty clear.
    • duffs54
    • By duffs54 9th Jun 17, 3:17 PM
    • 126 Posts
    • 59 Thanks
    duffs54
    Sounds like a nightmare, I'm so sorry you have ended up with having to pay them money, hopefully they will be sympathetic and an arrangement can be made, good luck x
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