PPI refund on a statute barred debt

[Klw2601]

Hi there, I'm new to the forum just looking for some advice please.

 

The past few months I've been helping my brother reclaim PPI on his old cards and loans.

Yesterday he received an upheld letter from Lloyds bank from an old tsbloan.

The loan defaulted in 2007 and he has never received a ccj or debt letters for many years.

It is statute barred.

 

The PPI award says they will refund him £Xxxx into his account ending xxx (Barclays) which we supplied on the questionnaire, within 28 days.

It doesn't mention offsetting any monies which I assumed would be the case.

Has anybody had a similar situation and is it the case that he will receive the refund into his bank or can they still offset this ?!

 

Thankyou in advance

[dx100uk]

plenty of example cases on the FOD website FAQ's

if the original creditor does not OWN the debt

i'e its been sold to a DCA [most probable]

they CANNOT offset.

 

for want of info...a debt being SB'd in E&W simply means any court judgement [if there were any] cannot be enforced after 6yrs from last payment.

on Scotland after 5yrs the debt is extinguished does not exist on anyones books..dead gone parrot

 

how do you know the PPI refund is correct?

did you sar them. get all the statements and work it out?

I wouldn't trust ANY bank to calculate it properly!!

you send a speculative claim with doing the homework.

they send you a speculative figure...……..!!!

[Klw2601]

Thanks so much for your quick reply!

 

He received electronic statements (after we lodged the miss sell claim) which told us that his PPI over 2003 to 2006 he paid was 1661.

 

He defaulted the account in 2007 and all it said on the forms was passed to lloyds recoveries.

 

2 years on and an account he didn't think had any default actually does after he rec'd the statements and seen.

I assumed then once the ppi check was complete any amount owing he would lose to offset,

yet the letter of redress he got yesterday says he is due 3234 into his nominated account.

 

So confused as to whether he will receive it or not now.

I know payments is a different department whether they decide there or not I have no idea?

 

He had best not get his hope up! 

Payment is due within 28 days of the letter.

[dx100uk]

if its the SAME account the PPI was levied on and Lloyds still own it, then they could offset yes.

there is no hard and fast rule or knowledge to indicate either way sadly. but I doubt it.

 

my memory doesn't flag up any threads whereby I have see Lloyds offset PPI .

and ive done 3 for locals to me and that didn't ever happen nor was ever mentioned in any paperwork

 

don't forget Lloyds have been hammered by the FCA/FOS at least twice now? and been fined for doing things wrong etc

I doubt they've even thought about offset.

 

dx

 

 

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