Debt Collection Agencies/Refunds

[Bill-K]

Re: Debt Collection Agencies/Refunds

Thanks for that Di. My understanding is that the apportioned account interest (attributable to the accrued PPI payments) may be used toward whatever arrears still remain - BUT the 8% Statutory interest must be refunded to the claimant. These two different types of interest can cause confusion, and it would be good to see a clear written reply from the FOS about this.

[labman]

Re: Debt Collection Agencies/Refunds

Qué?

[Bill-K]

Re: Debt Collection Agencies/Refunds

Barsteward.

Spoken in John Cleese 'snooty' Oxford accent: "OK OK OK., Manuel. I'll have the b100dy Paella for breakfast like everyone else. I guess my 'Full English' was more like 'Double Dutch,' so here's Take 2."

The PPI payments accrued throughout the time that the account was open and active. Each month, account interest was debited to the account, and was calculated as a percentage of the balance owing (using the APR). An increasing portion of this balance was made up of the accumulated total of the PPI charged over the preceding months. Thus, an increasing portion of the account interest was directly attributable to the PPI, and is similarly refundable. In the calculation of redress, this interest is also added to the accumulated total of the PPI.

ALL of the above is the refundable PPI which is claimed - and which MAY be allocated toward any arrears still owing.

But there is a second form of interest which is awarded - and this IS an award, as it is 'compensatory' interest, which a court would order the lender to pay the claimant to compensate for the loss of use of any moneys which they might otherwise have enjoyed. With revolving credit, this is paid on any amount by which the account WOULD have been in credit if the PPI had not been sold. This is calculated at the Statutory rate of 8% simple interest, and is payable for any month where the above 'Notional Balance' would have been in credit. It ain't usually very much, but because it is technically compensation, then it cannot be 'appropriated' by the lender toward paying of any arrears.

[EXC]

Re: Debt Collection Agencies/Refunds

Just to say I've sent a reminder to OFT to respond.

[di30]

Re: Debt Collection Agencies/Refunds

Thanks for that Di. My understanding is that the apportioned account interest (attributable to the accrued PPI payments) may be used toward whatever arrears still remain - BUT the 8% Statutory interest must be refunded to the claimant. These two different types of interest can cause confusion, and it would be good to see a clear written reply from the FOS about this.

Thank you again Bill.

And this is what I tried explaining to him.
He sent me his calculations, when i get round to it i will post them up and maybe see what lloyds have done. or hoping to do.

[di30]

Re: Debt Collection Agencies/Refunds

Just to say I've sent a reminder to OFT to respond.

Excellent EXC. Look forward to hearing the response, once you receive it, thank you.

[Bill-K]

Re: Debt Collection Agencies/Refunds

Just realised - due to recent posts - that CurlyBen started a 'sticky' thread about assignment back in 2008. Just posting the link here for reference:-

http://www.legalbeagles.info/forums/...and-assignment

EDIT: Please note that the thread was started in 2008, so it is NOT current knowledge. It may well have been superceded, but I thought it worth adding to the discussion 'mix.'

[di30]

Re: Debt Collection Agencies/Refunds

I did actually see that Bill, but as you said it's been almost over 4 years.

[di30]

Re: Debt Collection Agencies/Refunds

Just to say I've sent a reminder to OFT to respond.

Hiya

Just to ask if any updates from OFT yet pretty please? lol (I understand they can take some time). :santa_smiley:

[Bill-K]

Re: Debt Collection Agencies/Refunds

Being the disbeliever that I am, I saw a market opportunity, and got a load of Mayan calendars printed off for the 14th B'ak'tun, starting today (arguably !!!) - "Get yer new Mayan Calendars 'ere, while you can, peeps - they may not be available tomorrow."

I understand Peckham is now a 'no-go area' for many enforcement agencies these days - "Ain't that right, Rodney ?"

LOL - I'm sure the OFT will be kept pretty busy over Christmas by entrepreneurs like me !!!

[EXC]

Re: Debt Collection Agencies/Refunds

Hiya

Just to ask if any updates from OFT yet pretty please? lol (I understand they can take some time). :santa_smiley:

Sorry Di, no. They're flippin' useless aren't they? I'll send another reminder.

[jax50]

Re: Debt Collection Agencies/Refunds

Just thought i would update..the refund of charges agreed by my OC..after years' of discussion, which they refused point blank to pay to me..
The OC insisted it had retained a right to buy back part of the account from the fully assigned DCA, and that is what they intended to do..offsetting against the 'outstanding balance'..(not arrears i noted). However, something must have rattled them, because they have now decided to buy back the whole account from the DCA..(and remove the DN)...apply the refund to the balance...pass to their collections dept...who will discuss how i intend to settle up....and if i don't they promise to issue another DN...

ouch !

[di30]

Re: Debt Collection Agencies/Refunds

And that I assume was an absolute agreement as such as well then?

Strange how the OC now want to buy it back isnt it?

[labman]

Re: Debt Collection Agencies/Refunds

It must have been an absolute assignment if they bought it back. Actually he does say 'fully assigned' as well. :santa2:

[jax50]

Re: Debt Collection Agencies/Refunds

Indeed it was...so in reality, it matters not if the OC has no legal rights to a debt they 'legally' sold...because they always have, it seems.