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PPI reclaim set off to 3rd party creditor rules and guidelines
Comments
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Bizarrely, if the debt was sold to a third party and no right of clawback exists, they have to refund you on an upheld complaint.
If the debt was sold to a third party with the right of clawback, then they can set off the redress against the debt.
if they retain the ownership of the debt but use third party collection agencies, then they can set off against the debt.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.0 -
Thank you for the response dunstonh, these are very helpful comments.
Would or where would the right of clawback be stipulated?
Does the right of clawback have a statutory time limit or is it an indefinite right?0 -
Well done for continuing to feed, Dunston
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I welcome everyone’s views and if possible, links to previous cases with the ombudsman or legal would be much appreciated concerning the topic.....
banking: firms' right of "set off"
https://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm
Setting-Off Rules
https://www.moneysavingexpert.com/banking/setting-off/0 -
Thank you for the response dunstonh, these are very helpful comments.
Would or where would the right of clawback be stipulated? ...
In the contract between the lender and the DCA. And no, you can't have a copy.Does the right of clawback have a statutory time limit or is it an indefinite right?
Indefinite. Probably. It would be in the contract. Can't see why either the lender or the DCA would want a time limit.0 -
Look, you borrowed money and didn't pay it back for whatever reason. Now you want a refund of that money you didn't pay. If the bank has the right to offset then they are allowed to do it and you can't do anything about it. At least you have the satisfaction your unpaid debt is now repaid.
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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If you are in default, arrears or they have frozen interest, they have the right to set off any redress against your debt.
If the debt is statute barred, they still have that right. Statute barred merely means they can't pursue you in court for that debt, not that you suddenly don't owe it anymore.Non me fac calcitrare tuum culi0 -
It is a contract between the lender and the third party company. You wouldnt know or be able to find out.Would or where would the right of clawback be stipulated?Does the right of clawback have a statutory time limit or is it an indefinite right?
Indefinite right. Also, a number of lenders didn't have clawback originally but have altered their contract terms with their creditors to put it in place. This followed an ombudsman decision that went against HSBC.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.0 -
You lot must all work for banks!
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OP - I’m beginning to think that there’s a conflict of interest between your brain and logic.0
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