PPI sucess, but.........

ASB1984

hello,

Barclaycard have upheld my complaint over ppi mis-selling and offered a settlement. However they want to pay it to the DCA who now own the debt- can they do this? The PPI settlement is in effect a REFUND - how can it be passed onto a third party who have nothing to do with it at all?

Also when i say "own", lowell portfolio say in its letters barclaycard "sold" them the account.

any thoughts would be much appreciated

thanks!

di3004

ASB1984 wrote: »

hello,

Barclaycard have upheld my complaint over ppi mis-selling and offered a settlement. However they want to pay it to the DCA who now own the debt- can they do this? The PPI settlement is in effect a REFUND - how can it be passed onto a third party who have nothing to do with it at all?

Also when i say "own", lowell portfolio say in its letters barclaycard "sold" them the account.

any thoughts would be much appreciated

thanks!

Hi there

Well done on your success!

Unfortunately yes its what they do, even if its been moved on to a DCA as its a way of retrieving some of the money that is owed, but if there is anything remaining I understand this is refunded directly to you, and interest as well, you could check on that one.;)
Good luck.

ASB1984

Thanks for the reply!

But barclaycard sold the debt- they wouldnt be retrieving any money as they have already been "paid" by the DCA?

So in effect they are saying : here is your refund and then chucking it to a third party.

di3004

One of mine was moved on to a DCA and that they forwarded the redress of to them, but paid me a cheque of the interest.

Maybe I am confused on this one somehow, but hopefully someone will come along and have the correct answer on this for you, just in case, but that is what did happen with one of mine.;)

As the account is still active but not with the bank, the DCA is whom taken over it (or the bank sell it on to a DCA) and we were originally paying token payments to them when we were in financial hardship.

Premier_2

ASB1984 wrote: »

...So in effect they are saying : here is your refund and then chucking it to a third party.

No, what they are saying is : here is your refund and we will use it to reduce the amount you owe us

The debt sold to the DCA was incorrect (if indeed it was sold - some DCA's act only to recover money owed to a creditor, and get paid accordingly).
The DCA can no longer attempt to collect the original amount as you would quite rightly argue you don't owe that amount due to the creditor admitting it's error over the PPI payments deducted from your account.

It's very rare to get paid a refund of money you never paid in the first place. Whilst it does occassionally happen, you shouldn't expect it.

ASB1984

This is where i am confused:

Lowell portfolio are now the legal owners of the debt.

I dont owe barclaycard anything i owe Lowell portfolio.

Why should my PPI refund go to Lowell portfolio?

The PPI is between me and barclaycard?

This is all on the basis that Barclaycard doesnt own the debt anymore- or so i believe!

If barclaycard owned the debt- then the PPi refund would be applied to the barclaycard account.

~Brock~

I assume that the debt was passed to the DCA (whether they 'bought' it or not is irrelevant) because you failed to pay the debt when it was with Barclaycard.

The DCA, under the terms of their assignment, will have rights to be paid the full balance outstanding just as Barclaycard would be had they not sold it. This means that any refund of PPI would, and should, be used to offset against this balance.

Why do you expect to be repaid money you did not pay in the first place?

di3004

Thanks for clarifying on this Brock.;)

neverletitgetyoudown

i think they can pay they the amount owed to you to them but they must pay you the 8% statutory interest

Premier_2

ASB1984 wrote: »

This is where i am confused:

Lowell portfolio are now the legal owners of the debt.

...

They may be the legal owner at present, but the underlying debt itself is not legal.

It was based on an error by the original creditor; one which they have now admitted to you.

Therefore the debt that Lowell portfolio bought was a 'pup'. i.e. it does not conform to contract. You would quite rightly dispute it as the original creditor has now admitted their error during the time it allegedly accrued.
The DCA would need to refer the debt back to the original creditor.