Advice on a Debt NoA From Lloyds to Idem Servicing

Freddy_Jones_2

Hi,

I have a long standing debt accumulated over many years which, due to both physical and mental health issues, I have unfortunately been unable to pay off. It has been under control for several years by making small payments under self negotiated agreements with creditors. However, I have no doubt that I was miss sold PPI on my Lloyds credit card and now want to claim it back before the deadline.

I want to avoid the PPI payment just being used to offset the outstanding debt so that I can much more effectively use it to negotiate F+F settlements with Lloyds and possibly others - hence clearing some of my debts rather than just reducing them.

The Lloyds debt was allegedly assigned to Idem back in 2015 and since then I have only had correspondence from Idem though I never changed the payments so they still go through Lloyds. I want to be as certain as possible that the NoA sent to me is as it seems and not misleading, so that when Lloyds make the pay-out they will not simply use it to partly offset the debt. In other words I want to be certain that Lloyds has no legal right over the debt and no obligation to pay the PPI pay-out to Idem.

Strangely, if I recall correctly, the NoA letters from both Lloyds and Idem came in the same envelope - maybe its common practice but just seems suspicious. I called Lloyds recently and they confirmed that they no longer have rights over the debt as it was sold to Idem back in 2015 - but I don't feel I should just trust them! I have not tried to contact Idem as I am certain they can not be trusted and they will simply start bombarding me again!

My main questions are therefore:

1) Does the agreement appear as it reads with all legal rights and obligations passed to Idem - so that Lloyds no longer have any say or involvement in the debt?

2) If so, is there likely to be any other arrangement whereby Lloyds will pay the PPI to Idem, e.g. part of their agreement at the time of assignment was that Lloyds should pay any future positive customer balance to Idem?

All advice appreciated!

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The NoA from Lloyds with my highlights:


Dear XXX

Reference : Credit Card Account No : XXX
Your new ldem Servicing account number XXX

We are writing to notify you that Lloyds Bank plc has assigned all of its respective rights, title and interest in respect of the above referenced account (including the outstanding balance) to ldem Capital Securities Limited trading as Idem Servicing, effective XXX 2015.

The total balance sold was £XXX, as at the date of sale XXX 2015. Any payments made towards your Lloyds Bank plc account after XXX 2015 will be forwarded to Idem Servicing, and will be deducted from the balance shown above.

Under the terms of this assignment, and as defined in the Data Protection Act 1998, ldem Capital Securities Limited is now the Data Controller of your Personal Data contained in the records of this account.

ldem Servicing will now manage your account and it is essential that all future payments and
correspondence regarding this account be directed to ldem Servicing at

ldem Servicing
PO Box 16619
Solihull B91 9TU

Telephone 0345 849 4170

Please note your existing repayment arrangement will be honoured by ldem Servicing and will be reviewed within the agreed timescales.

Yours sincerely

XXX
Director, Collections and Recoveries

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The corresponding letter from Idem with my highlights:


XXX 2015

Your existing Lloyds Bank plc account number : XXX

Your new ldem Servicing account number : XXX

Dear XXX

Welcome to ldem Servicing

We write to inform you that Lloyds Bank plc (the"Bank") has now assigned to Idem Capital Securities Limited, trading as ldem Servicing, the outstanding balance under the above-referenced Credit Card account, effective from XXX 2015. The total outstanding balance on the account as at that date was £XXX.

Under the terms of this assignment and as defined in the Data Protection Act 1998, ldem Capital Securities Limited is now the Data Controller of your personal data contained in the records of this account.

We will be contacting your Debt Management Company to advise them of this sale, therefore this letter is for your information only. We have allocated a new account number (shown above) which you should use in all future contact with us.

Although the Bank has transferred the outstanding balance on your account to ldem Servicing, you can still contact the Bank in relation to any complaints you have about the time when it held your account.

Making payments

You, or your Debt Management Company, will need to ensure that your future payments are correctly credited to your account.

If you, or your Debt Management Company, pay by debit card, please call us on 0345 849 4170 to make your payment.

If you make payments through your bank by bank transfer, standing order or electronic transfer, please ensure your payment details are amended to reflect the following

Payee: ldem Servicing
Sort code: XXX
Account number: XXX
Account reference: Your new account number (shown at the top of this letter) and your name

Please remember to quote your new account number and your name to ensure that your payment is correctly applied to your account.

If you make your payments by cheque, please make them payable to "ldem Servicing" and send them to the following address

Idem Servicing
PO Box 16619
Solihull B91 9TU

Please remember to quote your new account number (shown at the top of this letter) and your name on the reverse of the cheque to ensure that your payment is correctly applied to your account.

Our opening hours

Idem Servicing's experienced teams will be available Monday to Friday, gam to 5pm on
0345 849 4170.

Please visit our website for further information.

Yours sincerely



XXX
Operations Manager
ldem Servicing

If you have any concerns regarding your financial situation we recommend that you seek free impartial advice from citizens advice (please refer to www. citizensadvice. org. uk for details of your local office) or Stepchange Debt Charity available on Freephone 0800 138 1111 or www. stepchange. org.

Enclosed FAQs

Frequently asked questions

Are LIoyds Bank plc allowed to do this?

Yes, LIoyds Bank plc are permitted to transfer your outstanding balance to a company of their choice at any time. Please be assured that your legal rights are not affected.

How does the sale affect me?
There should be no change in the level of customer service you receive. A new account number has been allocated and this is provided on our enclosed letter.

What happens next

Please read our enclosed letter which explains in more detail what's happening with your account and any action you may need to take.

What happens if a Debt Management Company is acting on my behalf?

You should continue to work with your Debt Management Company as usual. Please refer to our letter which wilt tell you whether you need to pass this notification to them, or whether we've already let them know about the transfer.

What happens if a payment has recently been sent to Lloyds Bank plc?

All payments made to Lloyds Bank plc during the transfer process will be forwarded to us and credited to your account.

Who do I contact regarding my account?

If you have a Debt Management Company acting on your behalf you should continue to discuss your account with them, otherwise please read our enclosed letter which provides our contact details.

What if my account has an agreed payment plan in place?

We will honour any existing payment plan and will contact you or your appointed Debt Management Company when this plan is due for review.

How do I raise a SAR (Subject Access Request) request

You have the right to access your personal data (on payment of a fee). Where it is inaccurate or incomplete you can update your tile. Should you wish to access your personal data, please write to us at ldem Servicing, PO Box 16619, Solihull B91 9TU.

sourcrates

Hi,

If you make a claim and are successful, it’s likely any redress will be used to lower your outstanding balance.
I believe this is possible using the rule of “set off” wear by any balance or windfall, held in your name, in any account within the same banking group, can be used to repay what you owe.

The rules on this are quite a gray area, and may well not apply to PPI, but I would proceed on the understanding I would lose it all, then if you do get something back, it’s a bonus.

D_M_E

There's been a few threads on this on the forum - people have been complaining that PPI compensation has been put toward any debt still held with the institution holding the debt, so I don't think you will have much, if any, success with your plans.