Complaint upheld but setting off to third party

Rangers123

None of the accounts show on my credit report any longer according to Noddle, however I have a copy of my Equifax report from early this year which shows the Egg account as "Settled" with "Current Balance" £0 and "Date Satisfied" 31/07/2011.

Also during the negotiation of the Full & Final settlement with Arrow I received a document from them that says that "In accordance with its contractual entitlement, Egg assigned its rights and duties under the Credit Agreement to the Claimant, Arrow Global Limited, on 28 February 2013."

As I said, Egg/Citibank are not contending that they own the account any longer, simply that they're allowed to set off part of the redress to a third party.

dunstonh

The bottom line is that they are allowed to offset the redress against arrears, defaults and amounts written off as part of an agreed settlement.

A settlement means they will no longer chase you for the debt. However, the debt still exists.

Rangers123

Yes, with Arrow! They are an entirely different company. It's really not that difficult to understand and it's quite clear that I do not owe anything to Egg, even Egg themselves are not saying that I do!

Obviously there is a bone of contention with this forum, I was looking for clear advice about a PPI issue, not moral judgements, hypothetical stories, parables or otherwise. I haven't even given any details about the original debt, which as I've stated is completely settled now, which means an agreeable solution between all concerned parties was reached. Case law and the Financial Ombudsman are quite clear about this matter, and that's all I'm interested in.

[Deleted User]

Rangers123 wrote: »

They are an entirely different company.

Not for the purposes of off setting your unpaid debt they aren't.

Rangers123 wrote: »

the original debt, which as I've stated is completely settled now,

You said you've agreed a settlement, but then went on to attempt to win further redress by making a PPI complaint. The settlement only applies if both sides agree not to revisit it.

To be honest, I'm wondering why you've asked anything about this on a forum, given that you've already threatened Canada square with "legal action" and been told in response that Egg are acting correctly and legally.

Why has this "dragged on for months"?

dunstonh

I haven't even given any details about the original debt, which as I've stated is completely settled now, which means an agreeable solution between all concerned parties was reached.

Only in respect that they will no longer chase you for the difference.

The have a right to repay to a third party where the third party is only acting for the lender and doesnt actually own the debt or where the original lender can recall the debt. Only where they cannot recall the debt can they not use the right of set off.

Rangers123

I've been told Egg are acting correctly and legally - by Egg!

It's dragged on for months because of their insistence in dealing with the matter by post and I live abroad. What exactly does that have to do with anything?

Forgive me for asking a question about reclaiming PPI... on a PPI forum. What exactly is with the animosity? I've only been polite.

And I'm afraid you're wrong, a separate company is a separate company. You can't 'kind-of' sell something.

Rangers123

dunstonh wrote: »

Only in respect that they will no longer chase you for the difference.

The have a right to repay to a third party where the third party is only acting for the lender and doesnt actually own the debt or where the original lender can recall the debt. Only where they cannot recall the debt can they not use the right of set off.

Exactly, and it's been confirmed that Arrow OWN the debt.

dunstonh

But can Egg take it back? If they can take it back, restructure it for the mis-sale and pass it back to arrow then it is allowed. A number of contracts with third party companies do allow transfer back. The FOS will look into that if you disagree with Egg and they will ask Egg if they are transferring it back. If yes, they can do it. if no, then you win your case at the FOS.

However, if you start legal action, you will not be able to use the FOS. Also be aware that the law and the FOS are different.

DevCoder

Ask Egg/Arrow for the Formal Deed Of Assignation (or do you already have this?) If so then post the contents (obfuscating any identifiable parts).

addedvaluebob

Arrow took the debt on a commercial basis by paying a proportion of the value in the hope of recovering a larger amount and thereby profiting. The debt is settled with the recovery company and the original lender. You should pursue legal action if you cannot get the offset money back.