Ppi & debt collection companies

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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

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  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    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: 14,503 Forumite
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    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].
    Shampoo? No thanks, I'll have real poo...
  • Nasqueron
    Nasqueron Posts: 8,825 Forumite
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    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
  • Andythefireman
    Andythefireman Posts: 8 Forumite
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    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
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    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: 8,825 Forumite
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    edited 19 September 2018 at 5:19PM
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    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
  • -taff
    -taff Posts: 14,503 Forumite
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    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.
    Shampoo? No thanks, I'll have real poo...
  • Andythefireman
    Andythefireman Posts: 8 Forumite
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    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: 14,503 Forumite
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    What does the letter acutally say?


    Does it mention PPI or does it say you overpaid?
    Shampoo? No thanks, I'll have real poo...
  • Andythefireman
    Andythefireman Posts: 8 Forumite
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    Overpaid. It’s I just don’t trust debt collection companies.
This discussion has been closed.
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