PPI - Old Loan - barclays BRU

millsy83

Hi, i have recently received a succesful PPI claim from Barclays.

The thing that has me confused, is that the letter says i owe approx £72 and that the account is with their Branch Recovery Unit.
There is no contact details for the BRU and i am confused as the account it pertains to should have been closed around 2005, but on the letter, it states its active!?

so my question is, has anyone else had this, is the debt correct and should i be attempting to contact them? i dont understand why they didnt use the PPI to cover the debt...?

Many thanks in advance.

[Deleted User]

We can't tell you if the debt is correct, because we don't know how much you left unpaid.

They only have the option of using your redress to offset the debt if it relates to the same account.

You'll need to get in touch with them.

millsy83

i'm in the process of doing so. very vague information on the settlement letter wasnt very helpful though.

[Deleted User]

millsy83 wrote: »

very vague information on the settlement letter wasnt very helpful though.

There is little point trying to contact the Bank's Recovery department as they will be writing to you shortly in any case to tell you that your unpaid debt has been offset.

If you had documentary evidence that the account was closed in 2005 with no default or write off you could of course challenge their decision.
However, it sounds like the account was not formally closed and you left monies outstanding. Your thread (from 2011) complaining about it due to difficulty obtaining a mortgage would seem to bear out this hypothesis;
https://forums.moneysavingexpert.com/discussion/comment/46500103#Comment_46500103

This being the case, the Bank can no longer chase you for this through the courts but they certainly have the right to offset it against any PPI award.

millsy83 wrote: »

i dont understand why they didnt use the PPI to cover the debt...?

It doesn't work that way. PPI was an insurance against unemployment and sickness, it was not a policy against default or bad debt.
Note also that, even if the PPI had been able to be "used" to pay your debt, you'd now no longer be receiving a PPI refund in any case...

[Deleted User]

decanter2020 wrote: »

Since you took it as an expense in a prior year and shouldnt have, the payments received now should be posted to 'other income' this year.

Have you posted this response to the wrong thread? :eek:

Otherwise, to what are you referring???

EDIT:
Spammer building post count.

bowlhead99

Moneyineptitude wrote: »

Have you posted this response to the wrong thread? :eek:

Otherwise, to what are you referring???

EDIT:
Spammer building post count.

I'm reporting this posters posts as fast as they come up. This off topic content randomly copied from a QuickBooks forums 2012 thread. Other posts are from Pistonheads, Reddit, Overclockers etc. Better to hit 'Report' on the poster rather than just marking the individual post as spam to hide it- there are a couple which are actually on topic, better to get the poster banned.