Debt Collection Agencies/Refunds

[di30]

Re: Debt Collection Agencies/Refunds

Hey that's ok Bill not a problem lol.

Debt Collections Agencies, your rights included etc....Debt collectors and Debt Collections Agencies.

http://www.ukfa.info/debt_collectors.6.html#Debt Collectors

[di30]

Re: Debt Collection Agencies/Refunds

OFT (Office of Fair Trading) Debt Collection Agencies....

http://www.oft.gov.uk/about-the-oft/...ebt-collection

[di30]

Re: Debt Collection Agencies/Refunds

You may also find this useful, as it's updated information too.

http://www.oft.gov.uk/shared_oft/con...lection_g1.pdf

[jax50]

Re: Debt Collection Agencies/Refunds

Di, does your thread , entitled 'refunds' include non PPI refunds too ? That is like my case where I'm claiming unfair interest charges, late payment fees and over limit fees ? In fact the OC has agreed the refund, as you know. All that remains is the 'method' by which the OC intends to refund these amounts to me.

At present the OC claims they have " an option to buy back part of this debt from the DCA, and as such this allows us to pay off part of the balance ". This is despite the assignment being a legal or absolute assignment.

The OC's argument is that with me paying only a reduced sum at the time then I didn't actually pay the interest and fees that were incorrectly applied, thus a cash refund wouldn't be appropriate (although they haven't quite said this).

However, as we all know, when you read how payments are applied to a credit card debt, that payments are applied a) first against the amount you owe for charges and then b) against cash advances and purchases ... So in fact everything I have paid (albeit not very much) was applied to the charges, so I have in fact paid for some of the interest and fees wrongly charged to the account.

One might argue that at least that element could be refunded as a cash refund, and the balance via the OC buying back part of the debt from the DCA..?

[di30]

Re: Debt Collection Agencies/Refunds

Di, does your thread , entitled 'refunds' include non PPI refunds too ? That is like my case where I'm claiming unfair interest charges, late payment fees and over limit fees ? In fact the OC has agreed the refund, as you know. All that remains is the 'method' by which the OC intends to refund these amounts to me.

At present the OC claims they have " an option to buy back part of this debt from the DCA, and as such this allows us to pay off part of the balance ". This is despite the assignment being a legal or absolute assignment.

The OC's argument is that with me paying only a reduced sum at the time then I didn't actually pay the interest and fees that were incorrectly applied, thus a cash refund wouldn't be appropriate (although they haven't quite said this).

However, as we all know, when you read how payments are applied to a credit card debt, that payments are applied a) first against the amount you owe for charges and then b) against cash advances and purchases ... So in fact everything I have paid (albeit not very much) was applied to the charges, so I have in fact paid for some of the interest and fees wrongly charged to the account.

One might argue that at least that element could be refunded as a cash refund, and the balance via the OC buying back part of the debt from the DCA..?

Hi Jax, yes of course it includes other financial products, so not a problem at all. My friend is dealing with an account package as well as PPI, another reason of why I am looking into this for him, so it's not just ppi.

[dogtired]

Re: Debt Collection Agencies/Refunds

mine was similar jax, the one to Cabot I had paid very small amounts to but when I challenged it they refered me back to BOS! eventually!
Then in July last year actually said in writing it was irretrivable yet BOS paid them the best part of the £900 refund.
The Sainsbury one I had been in an agreed payment plan and provided them with income and expenditure, I put it into dispute and from Jan to June last year continued to pay a small amount, they knew that a PPI claim was going through yet still defaulted it, this during assignment but letters from the three DCA involved that July, the FOS had trouble getting them to respond and I then got the offer one day and the refund two days later, no chance to accept or reject, the offer letter was unclear but the letter with the cheque stated " in settlement"

[labman]

Re: Debt Collection Agencies/Refunds

It can seem complex - and I confess that I'm no good at explaining stuff. If you go through it enough times, then hopefully, it all eventually clicks into place.

BUT - let's not hi-jack Di's original thread purpose, which is (I think) to establish exactly who becomes responsible for PPI redress when a debt is 're-assigned.' I think the calculations should follow from this discussion, and not lead it.

The ppi calculations seem logical and straightforward actually Bill.

The reason I asked the question was not to hi-jack the thread, it was asked as I am wondering about the legalities of assigning a debt, part of which may remain elsewhere. I'm also wondering about the legalities of them using the reclaimed money to go towards paying of the debt, rather than sending it to the debtor.

Had the borrower not been mis-sold ppi, the money would always have been in their pocket. I'm wondering what gives them the legal right to use the borrower's own money to repay their loan. For all they know, that money could go to another loan to stop the borrower being made bankrupt and their loan being written off altogether.

I don't think the initial question was about who is responsible in debt reassignment, I think it was more to do with who should be paid the money, the borrower or should it be put towards the debt. I may be wrong - it was late! :tinysmile_grin_t:

[Bill-K]

Re: Debt Collection Agencies/Refunds

Sorry if I seemed to be 'incinerating' there, Labman. I just didn't want to overload Di's thread with a load of maths (always a passion-killer). If it's a relevant part of the discussion, then it's fine by me, if it's fine by Di. The way you have put it seems to justify it to some extent - thank you !!!

[jax50]

Re: Debt Collection Agencies/Refunds

I don't think the initial question was about who is responsible in debt reassignment, I think it was more to do with who should be paid the money, the borrower or should it be put towards the debt. I may be wrong - it was late! :tinysmile_grin_t:

I agree, this is certainly the question..and who decides because some cases seem to be cash refunds while others are offset against the debt. So what, if any, are the 'rules' ? And for me, how can an OC assign in full and have no 'interest' yet still retain a right to buy back the debt...how does that work ?

[labman]

Re: Debt Collection Agencies/Refunds

Sorry if I seemed to be 'incinerating' there, Labman. I just didn't want to overload Di's thread with a load of maths (always a passion-killer). If it's a relevant part of the discussion, then it's fine by me, if it's fine by Di. The way you have put it seems to justify it to some extent - thank you !!!

Cheeky burger - it justifies it totally.

[di30]

Re: Debt Collection Agencies/Refunds

As you are aware, I am almost everywhere across consumer sites, I have just come across a post and the customer's complaint was upheld via PPI, and the debt is fully assigned (absolute) to a DCA.
The customer was informed by the OC that a cheque should arrive by 28 days, but we are waiting to see what happens from here now.

[labman]

Re: Debt Collection Agencies/Refunds

I've come across cases where the money has gone to the debtor as well Di.

[di30]

Re: Debt Collection Agencies/Refunds

I've come across cases where the money has gone to the debtor as well Di.

A mixed bag then of some receiving refunds and others not.

[labman]

Re: Debt Collection Agencies/Refunds

It often has to be challenged through the FOS.

I'd be interested to know under what legislation they can put the money towards the debt. As I mentioned previously, if you had not taken out the ppi, the money would be in your pocket. You were mis-sold the ppi, so surely you should be put back in the position you were before it was taken out -ie- the money should be in your pocket!

Anyone know the legislation they claim they use, as this is different to the right of offset by banks isn't it?

[di30]

Re: Debt Collection Agencies/Refunds

I was actually surprised to have read that the debtor I posted of earlier, their complaint was resolved directly with the bank, and did not have to go to the FOS, this is why we are now just waiting the 28 days to see if the cheque does actually get paid directly to the debtor, otherwise it may yet be the case, depending on what happens.

Yes that is correct labman, they are supposed to put you back in the position as if there were no ppi. So with being deprived of the mis selling of PPI, it should go back to the customer.
They just seem to believe it's a right of duty they have as such to claw back the PPI.

So realistically if the account that included ppi went to a DCA, the PPI would be worthless to the customer anyway, because your not able to make a claim for sickness/ppi etc, and the fact that it can no longer be used, it should be as you said really back to the customer of payments they made to the account of the PPI.

The loan without the PPI, fair enough if that ends up with a DCA.., good point!