Barclays using my ppi to offset a debt which was part of my DRO

rsm4525

Hello, i am new to this so i will explain as best i can.

My wife has had a successful ppi reclaim against barclays for loans since 2000. however, my wife had a DRO which expired on the 3rd May 2012 and in which was included the loan from barclays.

However, barclays have now taken nearly 10,200.00 to offset against this loan. My question is and i have looked into it, can they do so?, when everything i read states quite clearly that once the moratorium period has ended my wife is freed from all obligations and the loan is written off. Bankruptcy orders are different to DRO's in that there are no further restrictions or obligations placed on the debtor and that any successful ppi redress is yours to do with as you see fit.

Also, it is the ppi premiums that are being refunded, and not the actual loan itself.

Any thoughts on this matter would be greatly appreciated.

many thanks

debt_doctor

Hi,

I completely agree with you. Their actions are contrary to s251g of the Insolvency Act 1986 which forbids any remedy for the debt.
You need to make a formal complaint to Barclays in writing with a view to referring to the FOS if not satisfied.
You could try complaining to the DRO unit but they are likely to say " you need to seek your own legal advice on the matter..........."

DD

rsm4525

Hi DD.

Many thanks for your reply. I thought it would have been the case that Barclays were acting contrary so some law, however you have now cleared up which one.

I am in talks with Barclays, and they have reopened the case to be looked into again. Hope to know more in about 10-14 days. I also had a thought, if my wife defaulted on the loan in question and had to take out a for to sort herself out, would she have defaulted on Hegelian as it would have been a smaller loan based on no ppi on the previous consolidated debts. Therefore I would argue that the fact that Barclays now say that the ppi policies were unsuitable from the outset, and that Barclays should not have sold them to my wife, directly led to her financial difficulties at the time of the dro? Just a suggestion but it does make you think.

Anyhow will let you know how we get on.

Many thanks for the above advice

debt_doctor

Good luck, keep us informed.

I'd be happy to draft a complaint letter for you.

DD

rsm4525

Hello, thought i would post an update on Barclays and the outcome so far.

Had a letter today 12/09/13 saying that,

"barclays bank reserves the right to offset any outstanding debt with funds we hold or are due to you from us. This is detailed in the terms and conditions of your credit agreement when taking out your loan with us. Our actions are also fully compliant with our regulatory requirements."

Any comments and suggestions on where i go from here would be useful. At the moment i feel as though we are not going to win.

I look forward to hearing from you all.

debt_doctor

Hi,

As I mentioned earlier, you need to make a Formal Complaint in writing, along the lines of..................

.............whilst your terms and conditions of the loan agreement may allow you in ordinary circumstances to offset funds to pay a debit balance, they do not allow you to contravene s251g of the Insolvency Act 1986.
s251g states that no creditor subject to a Debt Relief Order may persue any remedy for the debt. Offseting is a remedy in respect of the debt, which is unlawful.
I require immediate payment of my PPI claim, should that not be forthcoming I shall make a complaint to the Financial Ombudsman Service.

- If their letter is the response to your formal complaint then send to FOS.
DD

fatbelly

You may be Ok - follow DD's advice.

Similar case re Barclaycard resolved last week

https://forums.moneysavingexpert.com/discussion/4755134

rsm4525

HI dd

I have today sent a formal letter to Barclays asking for an immediate and full refund of my ppi redress citing the Insolvency Act 1986.

I thank you for your help in this matter and it is helpful people like yourself and others on these forums that the little people are finally saying to big businesses... WE HAVE HAD ENOUGH OF BEING TRUSSED UP LIKE A XMAS GOOSE.

I also appreciate the link up with the other fella who had similar problems and has had a successful outcome. I hope that we do as well. Any further help would be greatly appreciated, and i will keep you all posted.

Many thanks

Skudy

I have had a very similar thing with Capital One.My DRO was issued in June 2010 and obviously completed 1 year later,which meant all debts had been written off.I found out earlier this year,that Capital One had been charging me PPI which I did not know about in 1997-98.I therefore put in a claim and after a couple of months they decided they did owe me a refund.However,they are now saying that they have taken the amount to reduce the debt they say I owed them.Further to this,they are now saying it was to clear a debt that wasn't included in the DRO,which is utter tripe,as the figures they have used are dated 2009 but the figures that were supplied to the insolvency office by them were given in May 2010. What they are trying to say is that a screen shot of my account,dated 12/2009 shows a different amount.They have told the girl at the FOS that this is a recoverable debt,to which she is inclined to agree, and they are therefore entitled to take the PPI.Who is correct Surely the amount that Capital One gave in 2010 is the correct amount.

fatbelly

Hi

DD's letter is brilliant but the threat to refer to FOS is a bit of an empty one as they are pretty useless when it comes to legalities.

However, please make sure she (the FOS lady) is aware of s251g and s251i of the Insolvency Act 1986 as quoted by DD above:

http://www.legislation.gov.uk/ukpga/1986/45/part/7A

The_Real_Cheddar_Bob

whilst i appreciate you may now be legally entitled to the ppi reclaim money, surely the moral thing to do is for Barclays to recoup some of the money you may or may not have owed.

Ten thousand pounds is a lot of money to most people, i can see how the excitement of getting something for nothing can overwhelm someones thought process and the immediate disappointment that has followed with Barclays acting in this manner.

heres an example, you lend a friend £20,000 and charge interest. Lets assume its illegal for you to charge interest (its not but...) and your friend doens't pay you back in full. It turns out that your friend has paid £10,000 in interest.

The debt gets wiped off and several years later a smarmy lawyer says hey, i can get that money back, They sue you and you lose and are ordered to pay your now probably ex friend £10,000 on top of the money you originally lost.

What would you do........