PPI on Statute Barred debt?

PSW

dunstonh wrote: »

Some always have but those that havent started around a decade or so back. Importantly, it appears to be retrospective as it is the contract between the bank and the debt management company that matters. So, let's say a lender never had that agreement, PPI complaints in that period would not be able to use against the defaulted and sold debt. However, the lender then changes the agreement with the debt management company, then going forward from that point, PPI complaints can use that money against the sold debt.

I think, from memory, HSBC is one of the main ones you see this change and it came about following a fairly high profile case in the financial press about them losing a complaint at the FOS as the debt was sold with no ability to bring back to the lender. Now you see all HSBC ones about sold debts going against the consumer on that point.

Learn something new everyday, I wonder how widespread this is? (I'm guessing not very)

I had read somewhere that some lenders were trying to buy back previously sold debts so that they could offset ppi refunds, however FOS wasn't too happy with this practice. How true that is I couldn't say

dunstonh

I had read somewhere that some lenders were trying to buy back previously sold debts so that they could offset ppi refunds, however FOS wasn't too happy with this practice. How true that is I couldn't say

They dont have to buy the debt back. They just have to have a commercial agreement with the debt management company for the debt to be able to go back. That seems to be the common mode now.

One of the other methods is to have the debt book maintained by the bank but use the third party for the collection. That is extremely common. Many think the debt has been sold because of the use of the third party but it hasnt been.

[Deleted User]

bery_451 wrote: »

I remember borrowing over a decade ago in 2006. How do I know there was a clawback option with the credit i borrowed?

You won't know for sure until you complain and have the refund offset against the debt.

How much do you still owe? Might be well-advised to let sleeping dogs lie.

PSW wrote: »

I wonder how widespread this is? (I'm guessing not very)

Why would you think that? Lots of posts on here would seem to suggest the opposite.

PSW

Moneyineptitude wrote: »

Why would you think that? Lots of posts on here would seem to suggest the opposite.

I've noticed on here as well as other forums people who have had debts that were sold and are now statue barred have had success in receiving payments for their PPI complaints. I have also experienced friends who made complaints of PPI and received refunds in similar circumstances from a number of different lenders. Therefore in my experience I don't think it's a widespread practiced followed by a number of different lenders.
HSBC have been mentioned to follow this practice however I haven't seen much, if any evidence that the majority of the other main lenders follow suit. This maybe because I'm relatively new to all this or it's just not a widespread policy🤔

bery_451

Ok so I shall I go ahead with the PPI claim? What are the chances of PPI claim be used to offset the debt if the debt has been sold?

-taff

As above. If the debt has truly been sold on, you will receive the redress back.

dunstonh

bery_451 wrote: »

Ok so I shall I go ahead with the PPI claim? What are the chances of PPI claim be used to offset the debt if the debt has been sold?

All the info is in this thread. If they can return the debt to lender or its the use of a third party company (as most banks now have it) then you wont see the money. If it is genuinely sold with no clawback abilty then you will.

takman

bery_451 wrote: »

Ok so I shall I go ahead with the PPI claim? What are the chances of PPI claim be used to offset the debt if the debt has been sold?

So you thinks it's ok to try and claim back the PPI on a debt that you owed but never bothered to pay back?

You must have pretty poor ethical standards if you think you should get any money from them!

Vectis

takman wrote: »

So you thinks it's ok to try and claim back the PPI on a debt that you owed but never bothered to pay back?

You must have pretty poor ethical standards if you think you should get any money from them!

Well, I'm going to make the assumption that they're asking so that, if it doesn't happen automatically, they can contact the company to pay back at least some of what they owe. I mean, that's what any decent person would do, isn't it, pay back what they owe?

(Of course, I may be wrong...)

takman

Vectis wrote: »

Well, I'm going to make the assumption that they're asking so that, if it doesn't happen automatically, they can contact the company to pay back at least some of what they owe. I mean, that's what any decent person would do, isn't it, pay back what they owe?

(Of course, I may be wrong...)

Well in the original post they asked:

bery_451 wrote: »

Hi,
If I claim ppi will the statute barred status go away?

If they were planning on paying their debts they wouldn't be worried about it becoming "un statute barred".