Blackmail!!

reguk

I have just been offered compensation from a high street shop loan.
They will not give it to me until I have cleared arrears.

This is blackmail

All my debts are being dealt with through CCCS and each creditor must be given a fair slice.

Their admitted mal-practice and my current finincial state are unrelated.

I have told them as much and expect the cheque, unconditionally.

Am I being unfair??

magpiecottage

Are you sure that is what they have said?

Most firms offering redress will apply it to money you owe them in the first instance. This is perfectly lawful and known as setting off.

Since the law says they can do it, if you are refusing to allow them to then yes you are being unfair.

dunstonh

They will not give it to me until I have cleared arrears.

This is blackmail

Its common sense. You are in arrears. So, in effect you have not been paying the premiums. So, it is logical to offset the refund against the arrears.

Their admitted mal-practice and my current finincial state are unrelated.

Are you sure that they have admitted that? Read it again and you will probably find it is a goodwill payment.

I have told them as much and expect the cheque, unconditionally.

Am I being unfair??

Yes you are. They are entitled to do it.

amersall

Agree with the above answers,but i think they have to give the 8% to you if that is in the goodwill gesture.

magpiecottage

amersall wrote: »

i think they have to give the 8% to you if that is in the goodwill gesture.

I disagree. If it is a goodwill gesture, it is exactly that and thus at their discretion.

If it is not a goodwill payment but an acknowledged debt then they are entitled to set it off.

That still leaves the debt owing to the firm concerned lower.

The OP should also consider that if they spend time arguing the toss unreasonably then the firm is entitled to argue that no interest entitlement should extend beyond the point of the offer since it was fair and reasonable and any delay is the fault of the OP, not the firm.

reguk

Thanks all for the responses.

I am pretty sure that if they discovered that another crediotr of mine gave me a few Thousand then they would want CCCS to offer a fair share of the 'windfall' to each creditor.

I agree that I may have no leg to stand on, but if people have clearly been taking extra money than they should have done through their own mis-selling policies and this may have partly contributed to debtor's further misfortunes then they should give back what they owe first and then sue for any outstanding payments.

If I paid cash into the account on the day that interest was charged on a credit card I bet they would calculate the interest to be charged before deducting the cash payment from the outstanding balance!!

amersall

magpiecottage wrote: »

I disagree. If it is a goodwill gesture, it is exactly that and thus at their discretion.

If it is not a goodwill payment but an acknowledged debt then they are entitled to set it off.

That still leaves the debt owing to the firm concerned lower.

The OP should also consider that if they spend time arguing the toss unreasonably then the firm is entitled to argue that no interest entitlement should extend beyond the point of the offer since it was fair and reasonable and any delay is the fault of the OP, not the firm.

I did say "i think" they had to.Now i know they do not

magpiecottage

reguk wrote: »

I am pretty sure that if they discovered that another crediotr of mine gave me a few Thousand then they would want CCCS to offer a fair share of the 'windfall' to each creditor.

I understand your reasoning but this has been tested in the courts and the right to set off was found to take precedence.

if people have clearly been taking extra money than they should have done through their own mis-selling policies and this may have partly contributed to debtor's further misfortunes then they should give back what they owe first and then sue for any outstanding payments.

I think that is a little too simplistic. Part of the payment you made will have gone to the profits of whoever set up the loan (which, in turn, may not be the lender). However most will have been passed on to the underwriter. Some will have gone to its overheads - staff, premises and the considerable regulatory fees that it must pay. Thus the vast majority of the redress is not from the money you actually paid.

Remember, too, that unless and until they have admitted liability, or a court of Ombudsman has found in your favour, they do not have to do anything.

If I paid cash into the account on the day that interest was charged on a credit card I bet they would calculate the interest to be charged before deducting the cash payment from the outstanding balance!!

I am not sure of the relevance of this. However, cleared funds will normally be applied immediately they arrive in the account - although if you pay cash it can take a couple of days to reach the account.