PPI offer - offset against debt sold to DCA - Welcome finance

derek51

Hi, first post so thanks for reading. I have looked through the threads on here but haven't seen a problem like my one.
I claimed PPI on a loan that I took out in the early 2000s from Welcome. The loan was £750. Due to circumstances at the time o didn't manage to repay the whole amount, I think I missed the last 3 or 4 payments. Welcome have sent me a PPI refund offer of £1247 which the day will be paid as follows: £583 to reduce arrears on the account, and £664 to adjust the outstanding balance so that no further payment is made towards PPI. On the next page of the letter, they say they sold my account to a DCA with a balance of £2855 and are in the process of repurchasing the debt.
Questions: the amount the debt was sold for and is extortionate in proportion to the amount borrowed. Should I ask for a SAR to clarify this? How do I know that they are successful in repurchasing the debt and not just saying that? Am I not entitled to PPI interest regardless of arrears? What do they mean by adjusting a balance so no payment is made towards PPI? Any advice on how to proceed will be greatly appreciated. Many thanks

dunstonh

and are in the process of repurchasing the debt.

That is the key bit. If the firm is able to claw back the debt then they are allowed to set the PPI redress against the debt.

Questions: the amount the debt was sold for and is extortionate in proportion to the amount borrowed.

Irrelevant. That is a commercial arrangement between the lender and the recovery company.

Should I ask for a SAR to clarify this?

A DSAR wouldnt cover that sort of thing.

How do I know that they are successful in repurchasing the debt and not just saying that?

its not a case of being successful. It is the agreement that they have with the recovery firm.

Am I not entitled to PPI interest regardless of arrears?

Not normally as the debt will likely have frozen interest too. So, it works both ways.

What do they mean by adjusting a balance so no payment is made towards PPI?

They will factor the removal of PPI from the outstanding debt. This would be partly to higher due to paying the PPI premium up front.

derek51

Thanks for your quick reply. Do you think I should ask for clarification about whether they have been able to re purchase the debt? If it is the case that they have then its fair enough and the refund will be used to offset the debt. I understand that Statute Barred does not apply here, but as the original loan was around 15 years ago, would it be plausible that they wouldn't be able to re-purchase it or do these things just lie on file indefinitely?

[Deleted User]

derek51 wrote: »

TDo you think I should ask for clarification about whether they have been able to re purchase the debt?

I don't know why you would pursue this any further, to be honest, they've already said all monies are being used to offset amounts you failed to repay in the first place.

dunstonh

Do you think I should ask for clarification about whether they have been able to re purchase the debt?

No. Its not a hypothetical or a potential. Its is a factual thing. They would know their contract otherwise they wouldnt have said it.

I understand that Statute Barred does not apply here, but as the original loan was around 15 years ago, would it be plausible that they wouldn't be able to re-purchase it or do these things just lie on file indefinitely?

The debt still exists until records disappear. With computers it is easier for records of key data to remain in place for longer than paper records.