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PPI Reclaim
Wilts39
Posts: 1 Newbie
Hi,
We used a company to reclaim a PPI policy. The Credit card company in question agreed to a refund but has taken the money to repay the debt which was in a repayment plan we had because we were in financial hardship.
The company we used to make the claim now wants their payment. But we have no money.
QS1/ Can the credit card company do this?
QS2/ Can the PPI reclaim company ask for their payment?
Thanks....
We used a company to reclaim a PPI policy. The Credit card company in question agreed to a refund but has taken the money to repay the debt which was in a repayment plan we had because we were in financial hardship.
The company we used to make the claim now wants their payment. But we have no money.
QS1/ Can the credit card company do this?
QS2/ Can the PPI reclaim company ask for their payment?
Thanks....
0
Comments
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The answers are yes and yes. You owe money to the company, now they owe you so its offset which they are allowed to do, FOS won't even change that view.
Also as you have used a CMC you now liable to pay their bill.0 -
QS1/ Can the credit card company do this?
Yes. They are allowed to offset the redress against the debt if you are in arrears, have defaulted or had amounts written off.QS2/ Can the PPI reclaim company ask for their payment?
Yes. However, see the potential get out below....
it is a shame you did not come to this board before as we frequently tell people to never use a claims company when you are in arrears, defaulted or had amounts written off (and some other scenarios where there can be issues).
That said, it appears the claims company may have broken the rule. If you read page 3-5 of the following rules about "cash in hand" and arrears you will see a few potential rule breaches as it was not in your interests to pursue the complaint through them and they should have told you the consequences.
http://www.justice.gov.uk/downloads/claims-regulation/handling-ppi-claims.pdf
the service could fail to meet the consumer’s needs contrary to Client Specific Rule 1(b). In most cases some advice has been given, so this would also breach the requirement to only pursue a claim where it is in the interests of a client
to do so, which is in contravention of Client Specific Rule 1(f).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yes. Here's a piece about the legalities of Setting off:QS1/ Can the credit card company do this?
http://www.moneysavingexpert.com/banking/setting-off
Yes, but as Dunston says above, if you informed the Claims Company that you were in arrears/default they should have warned you that the potential consequences of making your complaint through them would be that you ended up in debt again having received nothing personally.QS2/ Can the PPI reclaim company ask for their payment?0
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