Barclays paying PPI refund to other account

kittiej

Hello People,

I posted this http://forums.moneysavingexpert.com/showthread.php?t=3578821 but then realised it was in the wrong place.

Can anyone help please?

Thank you

di3004

Hi

Well done on your success!:beer:

If there are outstanding arrears, its known they will award the refund towards the arrears.
If there is anything remaining, plus interest they may send this directly to you, give them a call to make sure, good luck.

kittiej

thanks Di.

The debt has been passed over to a DCA from a previous DCA so not too sure where we stand tbh. We don't want Barclays to take the money and then have a DCA to pay as well.

ALIBOBSY

In these cases the banks are trying to use the laws of offset. However there is some arguement that these cases are different in that they are refunds NOT money sat in an account that they hold against arrears owed.

If the original debt was sold to a DCA they CANNOT pay the money over to them even under the laws of offset-quote the section where it states both accounts concerned in an offset must be owned by the same financial instituations. You can also argue that as the DCA would have bought the debt for pennies it would be unfair enrichment for the money to go to them. Also that to hold the refund against the one debt when you have other debts with other banks would be unfairly favoring one debtor over the others.

Definately argue it out, they are trying to reduce their paybacks by clawing back any cash they can. You are right about the restructuring as well.

BTW the 8% interest cannot be held against anything as it is compensation.

So the situation depends on who actually owns the debt now.

Was the settlement via the FOS or just through barclays?

If the payment was a "goodwill gesture" you can specify you will only accept it if it is paid in full to you.

Ali x

kittiej

Thanks ALI

I will have to write them a letter to say DH isn't happy with their decision.

They did say in their letter that the 8% would be paid to DH but the £1900 would pay the arrears off on the loan of which the DCA says stands at £2700 ( this is without any restructure so I don't know how much it should be )

If a DCA has bought this debt and doesn't turn out to be an in-house DCA then where will it leave them if they paid Barclays? The DCA was Debt Managers but now it's gone over to Call-Serve.