Can a bank setoff a PPI award against an extinguished debt

Nasqueron

mjm3346 wrote: »

There is no debt to "activate" in Scotland not only is it not possible to chase by legal means it is totally extinguished so there is nothing to put any offset against - If you make payments against a statute barred debt in England the lender can keep them but not in Scotland

But, for the third time, this is not the question asked.


The debt may be "wiped" but it doesn't mean that the numbers don't show as missing on the banks internal systems. If they then were asked to refund PPI on a debt that "doesn't exist" then what is there to refund as the PPI doesn't exist...

Bermonia

Wow, now you have merely repeated yourself without providing any new information or evidence I feel compelled to have to believe you... I think not!

Clearly this is a matter of contention that it currently being assessed via the courts, however what is clear is that RBS (a scottish bank) and FOS are of a differing opinion to you as was at least one judge.

I accept some people like to enterpret rules in a way that suits them... and if there is ambiguity then this holds the door open for it to be challenged.

rq9292

Maxis wrote: »

I received a letter telling me I would be receiving a payment within 30 days. Just not sure about the status of the extinguished debt. I guess things could change between now and then.

Unless the letter states they will offset the debt then it is all yours. If they have said they will pay you £3000 within 30 days in your bank account or a cheque addressed to you then that is what they'll do. It will probably take a lot less than 30 days to arrive too.

[Deleted User]

rq9292 wrote: »

Unless the letter states they will offset the debt then it is all yours. If they have said they will pay you £3000 within 30 days in your bank account or a cheque addressed to you then that is what they'll do.

That's not always the case if the redress is to be offset.
There have been plenty of instances where a complainant has been informed that redress will be paid, only to subsequently have it offset against unpaid debt.

This is due to the Bank's insolvency team checking for unpaid debt only after complaints have been upheld.

Regardless, the main thrust of this thread was whether it would be a different matter in Scotland for "extinguished" debt. That remains a point of contention from some quarters on here...