Capital One kept my charges dispite debt been sold on

Wits_end_3

Can someone please help me?? I have recently (after many weeks) managed to agree to accept £254 from Capital One for charges. However, even though my debt with them has been sold on, they have now sent me a letter saying that my refund has been used against my debt with them, ARGHHHH. Can they do that? I dont owe them the money as they sold the debt. Any help would be grately appreciated please. I REALLY need that money :-( :mad:

Premier_2

Yes they can do that; it is quite normal.

You never paid the money in the first place. What makes you think anyone will give you anything back in hard cash? :huh:

What they are doing is putting you back into the situation you would have been in had the charges not been applied in the first place.

Hence they will deduct the refund from the amount you owe. (If they have sold the debt on, they should make the necessary arrangements for that to occur). If a DCA is now chasing you for money in excess of what you should now actually owe (i.e. after takimg account of refund you accepted), then refer the DCA back to the original creditor.

dunstonh

Can they do that? I dont owe them the money as they sold the debt.

Think about it logically. You didn't pay the money back. You defaulted. So, why should you get a refund of money that you effectively havent paid in the first place?

As Premier says, it is quite normal and expected for companies to use redress payments against arrears and defaults first. It is a frequent warning posted to these forums.

Wits_end_3

Ok guy`s thanks for that. I`m new to posting on here so had`nt read the previous warning posts on here

dunstonh

Wits_end wrote: »

Ok guy`s thanks for that. I`m new to posting on here so had`nt read the previous warning posts on here

You were lucky. Its the poor sods that used claims companies in this situation who are the real losers.

You have ended up with a situation that leaves you no better off or worse off (possibly a little better off as the default could be mostly or fully cleared).

Those that use claims companies would be in the same situation as you except that the claims company would still want a cut of that redress payment made to to cover the default. They can often end up owing thousands despite winning the complaint.

Wits_end_3

Suppose your right Dunstonh! I totally refuse to get "those sort of people" involved when I can do it myself lol. Really wish it had of cleared the default, but no were near I`m afraid :-(. Thats another reason why I expected to get the money lol. Ahh well, suppose things could be worse, not!! Thanks for your help anyway :-)

ASB1984

Hey Wits end i wouldnt give up just yet! Did you recieve a letter of assignment from capital one saying the debt had been sold- and that capital one no longer owns the account? If so you dont owe capital one any money. If they offer you a refund they cannot apply it to "your account" because you do not have an account with them- you would have been removed from the capital one balance sheet. So any refund would have to be sent to the DCA. On that basis you can argue that you should get the refund payment not the DCA- as the refund is between you and capital one not the DCA. I would look into FOS guidlines regarding "set off".

If the account is still with capital one then you have no chance in hell of getting a refund by cheque, if not you have a chance.

But honestly if you truly owe the debt, then a refund will help you pay it off- which is prob the right thing to do.

Good luck.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

ASB1984

ignore that last link- having read it , it doesnt apply

Wits_end_3

ASB1984. Thanks for that :-) Do you know what, that is exactly my point lol. And after reading other comments I really thought, NO thats not right hee hee. I DO NOT owe Capital One as they sold the debt on, so that was why I posted the question lol. I thought it was me, but obviously you understand the point I was trying to put across. They told me in the letter, that they would refund the money and that it was up to me to inform the DCA as they (capital one) had sold the debt on!! Soooooo, I am right then??? lol

ASB1984

The definition of "sold" needs to be defined here: did you get a letter that said "notice of assignment"? if so what did it exactly say?

What are Capital one exactly saying regarding the refund? Who do they say they are paying it to?

Wits_end_3

I received a letter from Capital One in August 2009, informing me that they had sold the account onto the DCA and that the DCA was then the owners of the debt. I then received a letter from the DCA informing me that they were now the appointed debt recovery company for the debt. I claimed my charges back from Capital One and they stated that " they will offset the refund against any over limit amount or defaulted balance on my account. The remainder, if any will be issued as a cheque. Then they go on to say " As you know, we sold your debt to DCA. whilst we are happy to honour the refunds we have already offered, you will need to contact DCA directly to arrange repayments!!!! Now thats the bit that I am trying to explain! I should have received the money and the onus is then on me to pay the DCA, yes??????