PPI owed to us, but one of the loans with DCA

chez47

We have recently received a letter from a bank, saying that they have investigated our claim, and have found PPI on 2 previous loans, for which they are offering 2 payments. One of the loans has been paid off some years ago, and the other one has been defaulted on quite a while ago(over 6 years). The loan we defaulted on has been sold to a DCA since 2013. We are currently repaying the 2nd one via a DMP. Are we entitled to receive all of the payment they are offering, even though one of the loans is in default, or just the payment of the loan that has already been paid off? I have read some articles on the internet, and it looks like we could get all of it, as the loan which has been sold to the DCA, is no longer anything to do with the lender, as they have passed all rights on to the DCA. Ideally, if we received the full payment, our plan is to obtain a settlement figure to clear this debt and others. Have found letter from DCA saying it is a notice of assignment, and that they are legal owners of debt. Does this mean we get all of the money?

dunstonh

Are we entitled to receive all of the payment they are offering, even though one of the loans is in default, or just the payment of the loan that has already been paid off?

If the lender can reclaim the debt or it is just being administered by the third party (rather than actually sold - a very common arrangement) then the lender can use the redress against the debt.

If the lender has sold the debt and there is no right of reclaim from the third party then the lender has to pay you the redress.

Debt_Slayer

As I understand it, if the bank issue redress and the defaulted loan account remains with them any PPI is usually deducted from the balance.

If the bank 'sold' the debt on then any redress is paid to you. They cannot pay the third party collector.

I have read though that banks dont sell debts on, they merely enlist the help of a third party to collect the debt on their behalf while still retaining ownership of the account themselves. If thats the case they'll deduct PPI redress from the remaining balance, if the second loan was a refinance loan which paid the first loan early then they may use redress from both linked loans to clear an outstanding balance.

As they have already offered you two seperate amounts, what are the conditions of the redress?