Weird PPI situation HELP PLEASE

adzmacleod

So, I have a successful claim against Barclaycard, and I have just had my lovely letter with my offer for compensation, BUT.....there is a catch!! They are taking a large sum of the compensation to cover the 'debt outstanding' on the credit card.

This may sound perfectly logical, but it's not so clear cut, and I want to know if I can contest this? i'll explain the situation as brief as I can below.....

So, In 2001, aged just 18, I successfully receive my Barclaycard Credit card after a face to face meeting at my local Barclays bank. I am unknowingly sold PPI insurance as part of the repayments, and the credit limit was also increased from £500 to £1000 randomly a couple of years later with no consent from myself.

Then In 2011 I unfortunately became redundant and fell behind on minimum repayments, despite various agreements and repayment plans, the credit limit had maxed out at £1000, with charges eventually taking it way over that.
I then get a Debt Relief Order early in 2012 to take control of my finances, and this was 100% successful. My debts were officially written off by March 2013 (including my Barclaycard)

3 months later in June 2013, I had a letter from the financial Ombudsman to say my claim for mis-sold PPI insurance was successful, and I will hear from Barclaycard very soon with an offer.

I happen to check my Experian Credit Report and I noticed that Barclaycard were showing on my credit report as a DEFAULT, where as every other lender had updated their records and marked their status as 'settled' or 'satisfied' (as a result of the Debt Relief Order)

This does not only have a negative impact on my credit report, but now I have had my compensation offer from Barclaycard, their system still has my Credit card debt as being ongoing and active, when ACTUALLY it should have been written off 6 months ago with everything else!!

So where do I stand with my compensation? should Barclaycard have closed/settled my account after the debt was written off in my Debt Relief Order? or are they perfectly alright to use my compensation to pay off a debt that has already been written off, leaving me with about 40% of the compensation??

-taff

They are entitled to do that.
You had amounts written off for your DRO, so they are recouping these amounts.

A line was drawn as to where the debt was when they agreed the DRO, by complaining you rubbed out the line, so they can recoup their losses first.

dmliverpool

There entitled to the money as you spent the credit. If they gave you the money in full you would still be in debt and you may disappear. Anyway it reduces your original bill that you have to pay regardless of the case so in a way you do still get paid its just deferred if you get my point.

antrobus

adzmacleod wrote: »

....So where do I stand with my compensation? ...

Don't know.

I do know, however, that

(1) as Citizens Advice put it "You can't apply for a debt relief order if you: own things of value or have savings of over £300"
http://www.adviceguide.org.uk/wales/debt_w/debt_help_with_debt_e/debt_relief_orders.htm

(2) that the timing in this case - you received confirmation in June 2013 of your successful PPI claim, after being discharged from the DRO in March 2013 - would suggest that you had knowledge of the potential PPI claim whilst the DRO was in force

I'm not sure whether 'not telling the Official Receiver' about a potential claim for PPI compensation is an offence or not. It might be. I'd suggest taking legal advice.

adzmacleod

antrobus wrote: »

Don't know.

I do know, however, that

(1) as Citizens Advice put it "You can't apply for a debt relief order if you: own things of value or have savings of over £300"

(2) that the timing in this case - you received confirmation in June 2013 of your successful PPI claim, after being discharged from the DRO in March 2013 - would suggest that you had knowledge of the potential PPI claim whilst the DRO was in force

I'm not sure whether 'not telling the Official Receiver' about a potential claim for PPI compensation is an offence or not. It might be. I'd suggest taking legal advice.

Yes I understand the point your making, and I guess it's a bit of a grey area, because at the time of my DRO application I remember a question cropping up asking if I have any compensation owed to me? well at the time my PPI claim with Barclaycard had been rejected, so in my eyes, I didn't have anything owed to me, it was only through my later perseverance via the Ombudsman that I eventually got a successful claim, and this was long after my DRO was in motion.

Either way, it seems clear from your opinions that they CAN pay off the credit card with my compensation.

I guess my curiosity was just wondering whether it would be any different if Barclaycard had updated their system accordingly with the DRO, like they should have, instead of having the debt falsely labelled as active?!

BC_KT

It would not have made any difference, you would have still showed as in arrears to them regardless of whether or not it was written off.

-taff

adzmacleod wrote: »

I guess my curiosity was just wondering whether it would be any different if Barclaycard had updated their system accordingly with the DRO, like they should have, instead of having the debt falsely labelled as active?!

It probably got labelled as active once you complained.

adzmacleod

-taff wrote: »

It probably got labelled as active once you complained.

Yeh you may be right there! thanks.

adzmacleod

OK.....I just need to quickly correct you all........

I found out today from Barclaycard that I AM entitled to my WHOLE compensation amount. The debt that was left on my credit card WAS written off via my debt relief order, and I would only have had to pay off the credit card debt (with my compensation) IF I was still within my 12 month 'freezing' period.... but my PPI claim only became successful AFTER my DRO was completely settled (in fact it was 6 months after)

So... lucky me I guess!!!

-taff

very...well done

alastairq

below is a link to another , similar thread, where accurate advice and information has been given, regarding DRO's, off-setting, and PPI claims.

http://forums.moneysavingexpert.com/showthread.php?p=63139249#post63139249

well done, OP!