Financial ombudsman ruled in our favour but debtpassed on to debt collecton agency & we have to pay?

Traceybe

A PPI claim company used over 3 years ago suddenly sent letters to my partner advising he had an unpaid invoice from 3 years ago. They were unable to provide a copy of the invoice but continued to threaten him daily with calls demanding payment. Details were sent to the Financial Ombudsman and in July they decided in his favour. We thought the matter was closed. Now he has received a letter from a debt collection agency advising the amount owed will increase by £100 A DAY and a bailiff will be sent to collect items to cover the debt. A call to the financial ombudsman and they have said despite deciding in our favour, now the PPI re claim company have passed over the debt we have to pay the debt agency and take the ppi company to the small claims court to get the money back...! Surely we have some rights if the ombudsman found in our favour?

wesleyad

Something doesn't sound right with regards to the Ombudsmans decision. I cant believe they are saying that if a debt is not owed (which they agree with), but then off loaded onto a collection agency, then suddenly you are obliged to pay and then attempt to get to back. This sounds like nonsense.

The first thing, is the debt actually owed (did he use them and get money back through PPI?) If so, regardless of the ombudsman's decision they could go to small claims and win (if they can prove it). So that's something to think about for the future.

In the meantime a debt collection agency has no powers to do anything, they are not the guys you see on telly, they are just a company who pursuing the debt for the PPI company and will write letters till they are blue in the face. They need to prove the debt and to do so would need to take you to small claims.

If I were you I would 100% not pay any money, that would be nuts and could be seen as admitting responsibility for the debt. You would never get it back.

I would write to the debt collection agency explaining there is no debt, include the decision from the ombusdman and tell them you will not be communication any further (you can also ignore completely but this is the route I'd take as they will make a note of it, even though they will ignore it). Any letters from them just bin or return to sender.

Sandtree

Would need to better understand the complaint and exactly what the FOS has said in its decision.

Secondly, was this the decision of the investigator/adjudicator and if so did they advise of the company has accepted their decision or escalated it to an ombudsman (an, not the)?

Sounds like in the first instance the different parts of the claims company arent joined up but it could also be that they are appealing the initial decision and hence it isnt over from their perspective.