Citigroup PPI claim declined, account sold on

purple_pants

Hi

I am trying to claim on behalf of my recently deceased mum who had a credit card with citigroup on which she was paying PPI. She took out the card when she was retired due to ill health and therefore shouldn't, in my opinion, have had the PPI. I wrote to Citigroup in my capacity of executor explaining my claim and after 9 weeks they have written back saying that they cannot help because mum's account was sold on to a third party.

I'm very new to this so first, should Citigroup be able to tell me who they sold it on to and secondly are they not eligible for the PPI that mum paid whilst the account was with them?

On an additional note I think there may have been some arrears involved but I don't have a full set of accounts to know how much.

Many thanks

DevCoder

Citigroup will be able to tell you who they have sold the debt to, your mum should also have received a letter from the new firm stating they have purchased all rights to the debt.

Any arrears can (and probably will) be set off against any payment

antrobus

You I think you want Opus.

http://www.opuscard.co.uk/

http://www.citibank.co.uk/personal/cards/

dunstonh

do note that if the debt was bigger than premiums paid then the refund, if successful, will go against the debt written off. It will not be paid to the estate

magpiecottage

dunstonh wrote: »

do note that if the debt was bigger than premiums paid then the refund, if successful, will go against the debt written off. It will not be paid to the estate

It will not stop them being liable for the sale of the original policy, though, so, at 50 pence for a stamp, I suggest the OP goes to FOS.

purple_pants

thank you everyone for your advice. I did think the original debt would need to be paid off but wasn't sure.

I will look into OPUs.

thanks once again

PaulW922

I am of the view in this case that Citi selling on the debt is not relevant. All they have done is assign their rights under the agreement to someone else. The cardholders contract was with Citibank and they cannot 'sell on' their responsibilities can they? It is no different to credit card default fee reclaiming - those were all claimed from the card companies and not any debt purchase company who had become involved,

Insider101

PaulW922 wrote: »

I am of the view in this case that Citi selling on the debt is not relevant. All they have done is assign their rights under the agreement to someone else. The cardholders contract was with Citibank and they cannot 'sell on' their responsibilities can they? It is no different to credit card default fee reclaiming - those were all claimed from the card companies and not any debt purchase company who had become involved,

This and what Magpie Cottage said are the correct answer. Regardless of whether they have sold on the rights to the debt, they were the original seller of the policy. Hence, the responsibility for the matters complained about would lie with them.

There is even an argument to be had over whether they are entitled to apply the right of set off to a sold on debt sold on to a third party. But yes, the OP should write back stating that regardless of whether the debt has subsequently been sold on, does not alter the fact that they were the seller of the original policy. Therefore they should investigate the complaint. If the letter contained FOS rights then the OP should also contact them to endure the case is referred in good time.

magpiecottage

If I were the OP, I would go straight to FOS on this occasion.

If the debt was sold on, then Citi would probably be entitled only to any sum it wrote off when the debt was sold on so the estate would receive the balance.

FOS may take some time but is simpler than arguing the toss with Citi.

UK007BullDog

The FOS may just bounce it back to the poster as the case has not yet been investigated to their full satisfaction.

In fact Citi should have given the name and details of who the debt/account was sold on to.

Write or call them and ask to give you the full details of who now holds the account. Then write to that company/lender. They in turn will then write to Citi to get any further information (if any available). Citi will then evaluate and give the answer to the poster. They may want to have all the details regarding the poster being an executor.

Its a bit weird, but the company who bought the account is now responsible for the account. By selling the account Citi have washed their hands on it.

However if only the debt was sold on to a 3rd party then Citi is still responsible. So I think the poster needs to do a bit more digging before contacting the FOS.

Also the FOS are so swamped with cases it could take a very long time before they would look at it. And then they may just push it away.

Before anyone hammers my response: I used to be a PPI complaints handler for a number of banks and lenders and I also worked for the FOS as an adjudicator. Due to health reasons I have left the Financial Services industry.

anney63

So in the event of redress will it be paid to the third party or direct to compainanant ??