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PPI claim but debts with lender
Any experience or opinions welcome.:)
Comments
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Any redress will be offset against your debts.0
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If the debts were truly sold on with no chance of reclaim from the debt collector then the money could well come to you but if the debts could be claimed back from the collectors they will offset against any unpaid money regardless of whether it's written off
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Second reply above is correct. If the lender sold the debt on, you don't owe the lender now. You owe the debt management company.
In addition, if the debt is with the lender they can't always take your redress towards arrears. If the debt is on the same loan or card for which you are complaining, then they can and will, but if it's for something completely different they probably can't and the FOS has ruled on such cases before.
Stuart0 -
Second reply above is correct. If the lender sold the debt on, you don't owe the lender now. You owe the debt management company.
In addition, if the debt is with the lender they can't always take your redress towards arrears. If the debt is on the same loan or card for which you are complaining, then they can and will, but if it's for something completely different they probably can't and the FOS has ruled on such cases before.
Stuart
Only if the debt is sold on with no claw back opportunity, many lenders outsource debt collection to third parties but do not truly sell it onSam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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Thanks for your input. So, if the lender clawed back some/all of any PPI award this wouldn't affect credit rating score in any way? (particularly if they sold the debt on to a debt chasing company).0
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You don't have a credit rating score.
Just credit files, which would show a reduced debt.0 -
Thanks. This seems logical. So, presumably if the lender clawed back some/all of any PPI award this wouldn't affect credit rating score in any way, particularly if they sold the debt on to a debt chasing company.0
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See post 7.0
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Don't the credit files reflect a score that potential lenders use as a creditworthyness indicator?
Equifax used to score people 0 to 600. Experian 0 to 1000.
low score = poor. Higher score = better.0 -
No. It's more useless than that.
High score = low activity. Bankrupts, 18 year olds, people with thin files, people with consistent repayments.
Low score = high activity. Taking on debt, paying off debt, opening cards, closing cards, defaults coming on, defaults falling off.
A magic 8 ball would be more accurate.0
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