PPI can the bank retain money on closed account?

edited 14 August 2017 at 10:37AM in Reclaim Bank & Credit Card Charges
2 replies 2K views
RabbleRouserRabbleRouser Forumite
3 Posts
edited 14 August 2017 at 10:37AM in Reclaim Bank & Credit Card Charges
Morning friends,

Okay where to start... I have 2 accounts from 2006 a Barclay bank loan and a Barclaycard. I tried to reclaim these myself a few years ago by doing a subject access request. This was ignored by Barclays, so this time I decided to use a claims company.

Anyway, I specifically asked the claims company whether Barclays could reclaim money they say may be oustanding on the accounts, which I was worried could then put me in debt to the claims company?! My response from the claims company was, because the accounts are long closed that Barclays cannot retain money regarding what may have been left outstanding on said accounts. So it's either a pay, or no pay situation...meaning I win, or don't win!

Can anyone here shed light on whether this is correct? The last thing I want to do is end up in debt to a claim company. In our first phone conversation I asked them this question and was assured that was the case.

Thanks and good luck :money:

PS: I forgot to mention that claims were sold to debt collectors, as when I tried to claim on the PPI I was told that I couldn't and had to keep paying towards it, even though it was supposed to be for my protection, which I then needed for a time as I sustained an injury and was out of work. I refused to pay and the claims were passed to 3rd parties who I never paid. this was 10 years ago, thanks in advance.
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Replies

  • Never mind I finally found the answer to my own question LOL!
    Great minds discuss ideas, Average minds discuss events, Small minds discuss people!
  • dunstonhdunstonh Forumite
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    Whilst you have the answer, for the benefit of others reading who may be wanting to know.....
    Anyway, I specifically asked the claims company whether Barclays could reclaim money they say may be oustanding on the accounts, which I was worried could then put me in debt to the claims company?! My response from the claims company was, because the accounts are long closed that Barclays cannot retain money regarding what may have been left outstanding on said accounts. So it's either a pay, or no pay situation...meaning I win, or don't win!

    The claims company is wrong (not a surprise)

    Banks are allowed to set off redress against arrears, defaults and amounts previously written off.

    CMCs charge against the amount the bank pays. Even if you do not personally see a penny of it. So, you could create a debt with the CMC by doing this. The CMC is meant to give you correct information and their guidelines state they should tell you this when they have cases where you may not get cash in hand.

    It is important that anyone who was unpaid debts through arrears, defaults, written off amounts, IVAs, bankruptcy etc does not use a CMC.
    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.
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