There has been mixed opinions on this matter, of who received the refund of a successful reclaim, for example Payment Protection Insurance/PPI, Credit Card Charges and so on.
For example, a Bank/Finanical Business selling the debt on to a Debt Collection Agency/organisation.
I have been doing a little research on various consumer sites and it seems that some banks/businesses will still try clawing back the refund of what is owed to the customer, or it maybe that the Debt Collection Agency will receive the refund, but this apparently should not be the case once it's sold on.
On the other hand, some customers have received full refunds once the debt's been sold on.
The fact here is that, if the Bank/Business fully assigned the debt onto a Debt Collection Agency, this means it will include all of its respective rights, title, and interest in respect of the account.
So once the sale has been done from business to debt collection agency, this should no longer be nothing to do with the original business.
From the date the debt was sold, the Debt collection agency (DCA) will confirm that Under this assignment, and defined in the Data Protection Act 1998, the DCA is now the Data Controller of your Personal Data contained in the records of this account.
So, basically the bank/business will have no interest in the account from there on.
You can still complain to the bank/business as they were the liable sellers, and if successful where a refund is due, the refund should therefore rightly be paid to the customer.
The customer should decide how they want to use the refund, and if they want to use the refund towards the outstanding debt with the DCA, then it should be left to deal with both Customer and DCA to make these arrangements.
Now on researching, the DCA cannot ask or should not ask for the refund of charges to be paid to them.
The Original creditor has to pay the refund to you (customer), and not the DCA because of "Notice of Assignment".
When the original creditor assigned the debt to the DCA, they did so by passing their right, title and benefit.
They have no right, title or benefit under the assignment.
However, it could be a different matter if the debt was collected under the banks own collection's department, because the debt is still with them, but if you receive a letter to confirm your debt was sold on, and fully assigned now by a (DCA), the bank should no longer have a say on any refund due.
Am looking into these matters further and will post more as I come across anything I think useful.
Did you receive your refund in full (when your debt was sold in full)? Or did it come back to you, whilst your account/debt was sold on to a DCA?
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Hi all,
I hope your well?
I appreciate this is an old thread but just wondered if anybody had any updates on this matter particularly with regards to refunds of card charges where there are arears with a DCA. I'm also curios as to how the new GDPR fit in with this in cases where the OC has done and absolute assignment of debt but still refunded the DCA to offset the debt?
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Re: Debt Collection Agencies/Refunds
After god knows how long someone from the OFT's Consumer Credit dept has finally responded and has asked me to call him, which of course I will.Leave a comment:
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Re: Debt Collection Agencies/Refunds
I had this back from OFT so hopefully it shouldn't be long now.
Hi Nick – apologies again for the delay.I’ve chased colleagues and they have promised that you will receive a responsesoon.
Regards
Mark
I suspect they'll provide a response to the original query I sent Mark (as per post#127) but once they have we can hit them with questions about more scenarios.Leave a comment:
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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.Leave a comment:
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Guest repliedRe: 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:Leave a comment:
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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?Leave a comment:
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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 !Leave a comment:
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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 !!!Leave a comment:
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Re: Debt Collection Agencies/Refunds
I did actually see that Bill, but as you said it's been almost over 4 years.
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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.'Leave a comment:
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