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Ppi & debt collection companies

Andythefireman
Andythefireman Posts: 8 Forumite
in Reclaim PPI & other insurance
Good afternoon,
Is there any eventuality that a debt collection company would contact you re: PPI &/or overpayment after an account has been settled?
Andythefireman

Comments

  • dunstonh
    dunstonh Posts: 120,952 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    No. Although if the debt was settled with a write off, then they may. PPi redress is allowed to be set off against amounts written off as part of an agreed settlement.

    Lets say the debt was £10k but they agreed you could repay £6k. They write off £4k. On a PPI complaint, they can use the redress on a successful complaint against that £4k and not pay it to you.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • -taff
    -taff Posts: 15,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No debt collection company should or would.
    If you have had an IVA, they may contact you or suggest you use one of their recomended companies [don't touch with a bargepole].
    Non me fac calcitrare tuum culi
  • Nasqueron
    Nasqueron Posts: 11,184 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Suppose it it was within the last 6 years they could see it as you acknowledging the debt and start chasing for payment. If it's over 6 years since settled then it's statute barred and can't be activated again

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • Andythefireman
    Andythefireman Posts: 8 Forumite
    An account was given to a debt company coz of late payments etc. I settled the account in full. Received a letter stating “contact us re: overpaid amount”. I’m highly suspicious of this?
  • Andythefireman
    Andythefireman Posts: 8 Forumite
    An account was given to a debt company coz of late payments etc. I settled the account in full. Received a letter stating “contact us re: overpaid amount”. I’m highly suspicious of this?
  • Nasqueron
    Nasqueron Posts: 11,184 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 19 September 2018 at 4:19PM
    Did you settle in full with no frozen interest, no payment plan etc?

    If it has been 6 years since it was last acknowledged then it's statute barred. If it's within the last 6 years and you are sure it was paid in full I'd be temped to send them a "prove it" letter (search on the forum for this) to see if they have any authority to collect anything

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • -taff
    -taff Posts: 15,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you settled the account and have it in writing that it has been settled, and it is the SAME firm, then contact them.
    If not, ignore it.
    Non me fac calcitrare tuum culi
  • Andythefireman
    Andythefireman Posts: 8 Forumite
    The account was with a credit card/loan company. They passed the account to a debt collection company. I paid in full all outstanding debt. The company that contacted me about ppi is the debt company, not the original company I took agreement out with. This is why it’s peaked my suspicions.
  • -taff
    -taff Posts: 15,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    What does the letter acutally say?


    Does it mention PPI or does it say you overpaid?
    Non me fac calcitrare tuum culi
  • Andythefireman
    Andythefireman Posts: 8 Forumite
    Overpaid. It’s I just don’t trust debt collection companies.
This discussion has been closed.
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