PPI repayment offset against outstanding debt question

[stalin's dead]

As anyone on here been offered a PPI refund by cheque even though they still have an outstanding debt with that particular creditor and if so what did you say to your lender to persuade them not to offset against the outstanding debt?

 

Did you use the hardship plea?

 

I know the lender can offset a PPI refund any debt outstanding but I'm sure some would take pity on someone in poverty etc

 

Thanks anyway

[firstship]

stalin Hi doubt it very much sorry.Give you some idea I accepted the PPI from a credit card company starts with B..........D but put on the acceptance form that I was happy if they applied the interest to the account and the balance to me as the PPI payments I had made where by their own admission mis-sold and not there property,and further if they did not agree with this my acceptance of the mis-sold PPI refund was Void the B......D took the lot and have now applied interest on the small amount outstanding after 3 years of agreed frozen interest

 

 

FS

[landy_alert]

Hi SD,

 

LTSB refunded two lots of PPI in the form of personal cheques on two separate loan accounts both of which were in default and in the hands of (but not sold to) DCAs. This was during 2010. Both complaints went through the FOS and in one email to me the FOS said that it was LTSB's intention to refund as a personal cheque - I wasn't going to argue with this, lol, being in need of that money at the time. When the refund was due on the second account the FOS said that Lloyds intended to offset it against the debt, so I reminded them that in the other account they had sent me a cheque. The adjudicator went back to LTSB with this and the result was that they agreed to do the same on the second account.

 

I also received cheque refunds on two MBNA credit card accounts which had outstanding balances (again in default) but the difference here was that these had been sold on to DCAs. In the case of both these accounts despite the FOS adjudicators warning me that the OC (MBNA) was within their rights to (and most likely would) send the refund to the DCA, this didn't happen and instead the cheques came to me.

 

On none of these occasions did I mention hardship.

 

I don't know if this was just luck, but that's my experience!

 

Wishing you well with this,

 

Landy x

[dx100uk]

they can only use offset against notified arrears, not the full outstanding balance.

 

dx

[firstship]

landy_alert Hi I stand corrected I should have passed mine to the FOB thankyou FS

[landy_alert]

Hi FS,

 

That's ok - maybe I was the exception to the rule

 

All the best,

 

Landy x

[stalin's dead]

thanks for that info guys/gals

 

appreciated

 

sd

[bezzy0_0]

they can only use offset against notified arrears, not the full outstanding balance.

 

dx

 

sorry to hijack here , is there any more info you point me to, has regards to rules , has i dont want rbs to offset my ppi settelment against disputed credit card debts with in the group,thanks

[ims21]

sorry to hijack here , is there any more info you point me to, has regards to rules , has i dont want rbs to offset my ppi settelment against disputed credit card debts with in the group,thanks

 

This could be a starting point for you

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

 

Regards

 

ims

[bezzy0_0]

This could be a starting point for you

 

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

 

Regards

 

ims

thanks for quick reply, appreciated, do you think if i write back rejecting their terms of seettlement letter , stating that the creditcard debt held with in rbs group(mint) is in dispute, can they or will they try and pay all of 3k plus settlement in to this debt account?

[ims21]

Hi

 

Can I ask what the nature of the dispute is?

 

Regards

 

ims

[bezzy0_0]

over cca , reconsituted etc, greens solicitors have backed off and closed there input after just one replied letter to them from me ,who were acting behalf of tridant who are chasing for rbs (mint) once given affidavit and confirmation under cuputr 2008 of original paperwork held by mint, payments suspended for 6 mths now , until they are proividing me with the confirmatioin i ask for.

[dx100uk]

the basis is the OP is says a recon is not enforceable, however, and correctly, OC are saying it is.

 

there is a clear financial 'link'

 

and yes if there are arrears, i bet they will offset.

pers i'd keep quiet!

 

dx

[ims21]

Hi

 

Tricky one.

 

As has been said, normally they can only set off against arrears. In this case if they wanted to push I believe that a recon agreement would suffice for a court, coupled with financial link

 

 

What about charges on the mint card that can be reclaimed...are there any?

 

Regards

 

ims

[bezzy0_0]

the basis is the OP is says a recon is not enforceable, however, and correctly, OC are saying it is.

 

there is a clear financial 'link'

 

and yes if there are arrears, i bet they will offset.

pers i'd keep quiet!

 

dx

thanks for reply, the acceptence ppi letter you have to sign to claim your settlement refund, i would like to think (wishful thinking i know) that they might be not be aware that i have disputed credit card debt and pay me directly by cheque without offsetting anyway,so the dilema is for me, dont sign anything yet , write back with my terms that want payment direct to me and for them not to offset on debts,

which brings me to the other dilema off highlighting and making them aware of the debt to them within the group?

 

also if i understand correctly,it would be the arrears only that would be offset and not my full refund that would go in to my cc debt ,(is that correct)?

has this is six months only into statuted barred, would rbs paying the arrears make the clock revert back to starting all over again if you understand what i am trying to say

 

do i sign accept and keep quiet and see what happens?

[bezzy0_0]

Hi

 

Tricky one.

 

As has been said, normally they can only set off against arrears. In this case if they wanted to push I believe that a recon agreement would suffice for a court, coupled with financial link

 

 

What about charges on the mint card that can be reclaimed...are there any?

 

Regards

 

ims

very few charges on this account i am afraid on this one .

[alibobsy]

As anyone on here been offered a PPI refund by cheque even though they still have an outstanding debt with that particular creditor and if so what did you say to your lender to persuade them not to offset against the outstanding debt?

 

Did you use the hardship plea?

 

I know the lender can offset a PPI refund any debt outstanding but I'm sure some would take pity on someone in poverty etc

 

Thanks anyway

 

Not got to the settlement stage yet, but I wondered if a better arguement would be on the grounds you have other outstanding debt and that had you not had to pay the PPI that money would have been split between your debtors. Therefore the money should go to you to be split prorata between any debtors?

 

Perhaps go in with an all barrels blazing approach that hardship applies plus in dispute and finally the fact that other debts exists?

 

This might sit better with the FOS and covers all angles.

Think you have a much better chance against DCA's rather than the original creditor.

 

Ali x

[Natalie Thomas]

Thank you for all the info x

[bezzy0_0]

thanks for reply, the acceptence ppi letter you have to sign to claim your settlement refund, i would like to think (wishful thinking i know) that they might be not be aware that i have disputed credit card debt and pay me directly by cheque without offsetting anyway,so the dilema is for me, dont sign anything yet , write back with my terms that want payment direct to me and for them not to offset on debts,

which brings me to the other dilema off highlighting and making them aware of the debt to them within the group?

 

also if i understand correctly,it would be the arrears only that would be offset and not my full refund that would go in to my cc debt ,(is that correct)?

has this is six months only into statuted barred, would rbs paying the arrears make the clock revert back to starting all over again if you understand what i am trying to say

 

do i sign accept and keep quiet and see what happens?

Update, I have received in full 3 .6k cheque, they did not offset against my cc debt, result me thinks,

[firstship]

Result ,well done, nice to get success

 

Regards FS