PRA Group - Query on outstanding balance due to PPI refund from Lloyds

[moneyworries]

Hi...my first post!
I have been in a DMP with Payplan since approx 2008. Part of the DMP was to do with a £31k Lloyds loan.

I recently submitted a PPI claim which was refused and then Lloyds sold the remaining debt to Aktiv Kapital.

In November last year, Lloyds contacted me to say that new legislation allowed me to resubmit my complaint. This time I was successful and received approx £13,000.

Lloyds also admitted that they should never have sold the debt to AK (2013) because of the complaint in progress at the time (PPI was one thing and I was disputing their right to continue to charge full interest given the longevity of the debt at that time).

I haven't been frivolous with my refund. No setoff was applied because the debt had been sold to AK (I did notify Lloyds of this on my claim form so nothing was undisclosed!)

I have paid off over £8000 in other debts and have used some of the remainder to put towards setting up a little business to run from home. I have approx £2k left.

I had received info from CAB to explain that I did not have to use the PPI refund to pay the debt in question partly because, the refund is mine but also because there is a question over whether the interest and charge applied are reasonable in regard to the debt as a whole.

Aktiv Kapital believe that they are still owed the £21k they were at the point they bought the debt. I have maintained my DMP throughout.

Any advice appreciated! I don't want to avoid or dispute the fact that I did have a loan with Lloyds but I want to check where things stand given that Lloyds have agreed that the debt should not have been sold on

Thankyou xx

[EXC]

Re: PRA Group - Query on outstanding balance due to PPI refund from Lloyds

I'll give [MENTION=6]Amethyst[/MENTION] a shout.

In the meantime can you clarify how much you have paid AK in total and also whether you have it in writing from Lloyds where they said that they shouldn't have sold the debt to AK?

[moneyworries]

Re: PRA Group - Query on outstanding balance due to PPI refund from Lloyds

Hi
Sadly I do not have in writing that the account should not have been passed on, it was a telephone conversation so I guess it may have been recorded. I am just asking here as I'm worried about the advice I received from CAB really. I'm not trying to dispute the debt or anything just who should handle it and how best to try and sort it out.

In total, over the course of my DMP, I have paid back just under £14,000 on that debt which includes just under £2k of that which being to Aktiv Kapital.

That's according to my records with Payplan.

Thanks for responding 😃

[moneyworries]

Re: PRA Group - Query on outstanding balance due to PPI refund from Lloyds

On an additional note today I spoke again with Citizen's Advice and they explained that as long as I had made clear on my claim form that the account was in dispute and that it had been sold on (not just passed for collection) that I was covered im terms of my refund being spent outside of the AK debt so that has allayed my concerns somewhat. I am (according to them) legally able to say that because the balance of the debt was in dispute, I chose to use my refund to clear other debts. Lloyds did not request a set-off despite knowing the full circumstances. Whether this was deliberate or not, I have no idea.

They advised to contact Lloyds to resume my complaint about the extent if interest and charges applied over the years.

Not sure how that will help with AK but I'll get on it.