PPI refund redirected to a DCA

Millerfun

Hi there
Looking for some help. Received a letter last week to say our PPI claim has been successful... fantastic we thought!!! We won!!! Not so fast... received a text today to say they are checking their records for outstanding debts within their group - RBS.

So here is the rub, many years ago after a period of serious illness my credit card with mint became unmanageable and I ended up in a payment plan. After some time the debt was sold to Wescott and I carried on paying them monthly. A couple of months ago the debt was taken over by Cabot and I have just organised a payment plan with them.

Can RBS pay Cabot direct even though the debt has been sold from Westcott to Cabot. Didn’t RBS already receive money when they sold the debt on.

It’s not that I don’t want to pay off what I owe but would like the choice to make Cabot an offer. I don’t even see how RBS can do this as my agreement is with Cabot now even if the debt originated with RBS, they sold it!

Help and advise much appreciated.

NCC-1701

Millerfun wrote: »

Hi there
Looking for some help. Received a letter last week to say our PPI claim has been successful... fantastic we thought!!! We won!!! Not so fast... received a text today to say they are checking their records for outstanding debts within their group - RBS.

So here is the rub, many years ago after a period of serious illness my credit card with mint became unmanageable and I ended up in a payment plan. After some time the debt was sold to Wescott and I carried on paying them monthly. A couple of months ago the debt was taken over by Cabot and I have just organised a payment plan with them.

Can RBS pay Cabot direct even though the debt has been sold from Westcott to Cabot. Didn’t RBS already receive money when they sold the debt on.

It’s not that I don’t want to pay off what I owe but would like the choice to make Cabot an offer. I don’t even see how RBS can do this as my agreement is with Cabot now even if the debt originated with RBS, they sold it!

Help and advise much appreciated.

What has happened is perfectly correct and legal and will have been written into the agreement RBS had with Westcott and Cabot.

Millerfun

Also, our claim was through a company which we have to pay 24% to. How does that work? We are supposed to pay them as soon as we receive it. I’m really worried that we will owe them too!

What a mess!!

NCC-1701

Millerfun wrote: »

Also, our claim was through a company which we have to pay 24% to. How does that work? We are supposed to pay them as soon as we receive it. I’m really worried that we will owe them too!

What a mess!!

Did you inform the claims management company you had an outstanding debt?

Millerfun

No I didn’t even think about it. We are looking at owing them £2500. Just turning into a nightmare.

Our plan was to make an offer on the debt to Cabot because we know that DCAs buy the debt heavily reduced but if they are paid directly we will not get this option.

How depressing!

SonOf

Millerfun wrote: »

Also, our claim was through a company which we have to pay 24% to. How does that work? We are supposed to pay them as soon as we receive it. I’m really worried that we will owe them too!

What a mess!!

It is recommended that you never use a CMC when you have arrears or have defaulted on a debt.

The CMC is allowed to bill you against the amount of redress even if you do not see a penny of it. Many CMCs will ask the question about defaults/arrears etc before submitting the complaint.

Millerfun

Hindsight is a glorious thing!!! Thank you for your responses.
Sob sob...

Millerfun

So reading on the forum it seems that we could get the 8% interest back albeit it would probably just pay of the claims company we used but is this right? Could we ask for the interest to be paid to us and not the DCA? More advice needed please .... feeling pretty desperate now!

[Deleted User]

SonOf wrote: »

Many CMCs will ask the question about defaults/arrears etc before submitting the complaint.

All CMCs are now required to not only ask the question about defaults and arrears, but also to refuse to accept such complaints. Failure to have done this will give the OP access to the Ombudsman.
The Op failed to disclose his default, however:

Millerfun wrote: »

No I didn’t even think about it.

brettcta

Millerfun wrote: »

So reading on the forum it seems that we could get the 8% interest back albeit it would probably just pay of the claims company we used but is this right? Could we ask for the interest to be paid to us and not the DCA? More advice needed please .... feeling pretty desperate now!

I think you may have mis-read.

The only money you’re getting back is if the redress is greater than the money owed to the DCA.

It looks like a costly mistake in both using a CMC and then not answering their screening questions properly