Remediation/Offsetting

[mark68]

Hi all,

We have a secured loan with £1300 worth of arrears, the creditor wrote to us in July 2014 informing us that due to a system error, they were in breach of their obligations under the CCA because they failed to send regular Notice of Sums in Arrears letters and they failed to advise us when a default sum was added.

Any interest charged during that period was removed and they made an adjustment on the loan account totalling £2,626.00. We asked if the amount could be offset against the arrears and the remainder offset against the the account, they refused stating, The arrears on your account relate to missed contractual payments which still remain outstanding. Therefore our error has had no impact on your monthly payments.

This is their final response and they are now going for a possession order unless we pay back the outstanding arrears. Is this worth pursuing with the Ombudsman or are they right with their response?

Any help and advice would be gratefully appreciated.

Thanks
M

[PAWS]

Re: Remediation/Offsetting

Hello Mark
That is a good question but one I am afraid I cannot answer!:sorry: I will give it a bump and see if anyone has any ideas.

[Amethyst]

Re: Remediation/Offsetting

Who was the original loan with ?


Ok

Any interest charged during that period was removed and they made an adjustment on the loan account totalling £2,626.00.

That is correct.

The arrears on your account relate to missed contractual payments which still remain outstanding. Therefore our error has had no impact on your monthly payments.

That is also correct IF the amount of arrears hasn't increased due to them adding that £2,626 interest - ie if you were in arrears before the period they failed to send notices and the arrears amount didn't alter because of the interest added - Have you had a full statement of your account off of them ? Impossible to say without having the full statement of account really. Do you have an arrangement to bring the arrears up to date and continue payments on the loan ?

[mark68]

Re: Remediation/Offsetting

Thanks for replying,

The loan is with nemo, I have since spoken with the Ombudsman and they have advised me to open a file based on the fairness of the decision, I will go for a SAR first. There is also an issue of them failing to move my dd date from the 15th of the month to the 29th (I have evidence of request) due to a job change, this of course meant the dd bounced, adding to the mess.

I have offered a very good repayment plan but they will not accept it unless it's tied to a suspended possession order, the Ombudsman will be sending a letter to me to send to the court to try and get the case stalled until the outcome of their investigation.

I'll keep you posted on the outcome.

Thanks
Mark