Irresponsible lending claim after DRO

swingaloo

I know my brothers circumstances were similar to yours but in his case one of his debtors was Barclaycard. He used a company called Investor Compensation who had told him that their fee would be taken out of his compensation and the rest was his. Barclaycard paid out but he didn't see a penny, neither did Investor. He ended up owing Investor over £2000 but he was given time to pay it.

fatbelly

swingaloo said:

I know my brothers circumstances were similar to yours but in his case one of his debtors was Barclaycard. He used a company called Investor Compensation who had told him that their fee would be taken out of his compensation and the rest was his. Barclaycard paid out but he didn't see a penny, neither did Investor. He ended up owing Investor over £2000 but he was given time to pay it.

So who did Barclaycard pay?

swingaloo

fatbelly said:

swingaloo said:

I know my brothers circumstances were similar to yours but in his case one of his debtors was Barclaycard. He used a company called Investor Compensation who had told him that their fee would be taken out of his compensation and the rest was his. Barclaycard paid out but he didn't see a penny, neither did Investor. He ended up owing Investor over £2000 but he was given time to pay it.

So who did Barclaycard pay?

They took the pay out off the balance he had owing to them

ManyWays

swingaloo said:

fatbelly said:

swingaloo said:

I know my brothers circumstances were similar to yours but in his case one of his debtors was Barclaycard. He used a company called Investor Compensation who had told him that their fee would be taken out of his compensation and the rest was his. Barclaycard paid out but he didn't see a penny, neither did Investor. He ended up owing Investor over £2000 but he was given time to pay it.

So who did Barclaycard pay?

They took the pay out off the balance he had owing to them

That used to be the normal procedure after a DRO when someone won a PPI claim and I would assume that the same applies to any other refunds.

tommyandjonny1

This is what the financial ombudsman had said 

If there is no debt to be paid then the redress will be paid to you.

I’m just awaiting confirmation in writing from the insolvency service. I’ve had verbal confirmation that there is no debt to be paid. 

sourcrates

tommyandjonny1 said:

This is what the financial ombudsman had said 

If there is no debt to be paid then the redress will be paid to you.

I’m just awaiting confirmation in writing from the insolvency service. I’ve had verbal confirmation that there is no debt to be paid. 

There is one thing I would urge you to do regardless of the outcome of this matter, and its something you should take note of.

When you engaged this claims management company to act for you, you will have signed a waiver giving them permission to act on your behalf, what you may not realise is that that applies not just to this matter, but all matters that might affect you, now and in the future.

Say the new big reclaiming frenzy comes along, and it was something you were involved in, they can make a claim on your behalf without even telling you, they could also apply for tax refunds from HMRC, and any other company or organisation that you may have a claim against, all without obtaining further permission from you.

edit: I do believe HMRC have taken steps to prevent this from happening in the future, but it has happened previously.

If any of these claims went ahead, and failed, you would still be liable for their fee`s, this permission continues until you cancel it in writing.

So once this is settled either way, that is what I suggest you do.

tommyandjonny1

Thank you so much for the heads up. I will ensure that I put something in writing to the company. 

tommyandjonny1

Just for anyone who may be interested and ever in a similar circumstance to me. 

ManyWays

The OR for a DRO never has any interest in any windfall amounts, there is no legal mechanism they could use to claim them. So this statement from the DRO unit doesn't help your situation at all.
The interesting thing is whether the Ombudsman will say that Aqua have to pay you, not reduce the amount owed to them because of the DRO. Have Aqua accepted the Ombudsman decision? What do Aqua say will happen? 

tommyandjonny1

ManyWays said:

The OR for a DRO never has any interest in any windfall amounts, there is no legal mechanism they could use to claim them. So this statement from the DRO unit doesn't help your situation at all.
The interesting thing is whether the Ombudsman will say that Aqua have to pay you, not reduce the amount owed to them because of the DRO. Have Aqua accepted the Ombudsman decision? What do Aqua say will happen? 

Aqua advised they will pay the redress to myself. As it is the Ombudsman advised there is no debt to be paid/owed to Aqua and that the redress is to come to myself, the statement from the DRO actually did help and was sent to Aqua who agreed.