Reclaiming PPI on a debt which has been sold on.

swingaloo

I claimed my PPI back on an account which still had money owing on it so it was rightly offset against the balance.

But was wondering what would happen in this situation-

My sister has a debt with the Halifax which has been sold on to Lowells.

If she now claims her PPI back from the Halifax will it be paid back to her or would they pass it on to Lowells as Halifax no longer own the debt?

dunstonh

If she now claims her PPI back from the Halifax will it be paid back to her or would they pass it on to Lowells as Halifax no longer own the debt?

Depends on the commercial relationship that exists between them. Its not a clean cut answer as there are a few "depends" in there. Many lenders use third party collection services without actually selling the debt on. So, the collection agency may do all the work thereafter and take a cut of any collection but the debt itself may still be owned by the bank. Where the debt was not sold, the bank can offset. If it was actually bought from the bank then the case is stronger but if the bank can show it still ended up in a loss position, it could argue the case for offsetting. Sometimes they win those. Sometimes they do not.

toneeb

MBNA passed my 'debt' to Link Financial.

I still claimed for mis sold PPI direct from MBNA and they refunded me