Barclaycard ppi....

[hottie132]

I have today received an offer from Barclaycard, but on the letter it does not state what card number it relates to, also i have not chased the PPI on the account, I'm being chased for the debt by Lowell Group who have apparantly bought the debt.
In the letter from barclaycard it states that they are prepared to pay back all Insurance premiums together with interest, but it will be taken off the outstanding amount on the card, but I'm somewhat confused as I thought the debt had been sold onto Lowell so how can they take it off the debt if they do not own anymore?? Not sure what the next step is, can anyone help? :tinysmile_hmm_t2:

[di30]

Re: Barclaycard ppi....

Hi there

How long ago was it that the debt was moved to Lowell?
Just wondering if the matter was resolved before-hand.

However, it appears going by posts here and there that this does seem to happen.

You could contact Barclaycard and explain the confusion with this matter, as you assumed the refund would be coming back to you as they no longer own the account.

[hottie132]

Re: Barclaycard ppi....

Hi

Thanks for that.
The debt was moved to Lowell in March 2012, thats when I received first correspondance off them.
Just bit concerned if accept the offer off Barclaycard, still going to have Lowell chasing me for debt they have bought off them.
I will take your advise and write to Barclaycard and ask the question.
Keep you posted on the outcome.

Thanks for your help

[Bill-K]

Re: Barclaycard ppi....

This causes confusion sometimes, doesn't it ? And I suspect that the DCA's and the lenders will take advantage of this if they can. I'm not sure of the exact legal position with this, but my take on it is this:-

We have to take our PPI claim to the Original Creditor (OC) initially, as they are (usually) the ones who 'sold the product,' and therefore any mis-selling of that product is their responsibility. Once mis-selling has been established or admitted, then our claim for redress remains with the OC. If the OC at some point then legitimately 'sold' the debt to a DCA, then the OC has effectively passed on the right to demand repayment to the DCA. But that is ALL that the OC has sold. What the OC has NOT passed on is the responsibility for mis-selling the PPI - UNLESS it can prove that the DCA accepted that (which I very much doubt.)

So - I believe it is up to the OC to recompense you for the consequences their mis-selling of an insurance product. It is then up to the OC to try and recoup that loss from the DCA. The DCA - having legitimately (presumably) bought the debt from the OC at a favourable price - can continue to hound the debtor for the full amount. The debtor may then attempt to settle matters with the DCA and negotiate a settlement figure.

Alternatively, the DCA may sell the debt back to the OC at the original price, in which case the OC may use the PPI refund to offset the amount owing.

Either way, if the debt was legitimately in arrears, then i think the PPI has to be used to to offset those first of all. Whatever may remain should be sent to the borrower/debtor.

It's probably best to try and keep matters between the OC and the debtor, and leave the OC and the DCA to slug it out in private. However, if one can secure a refund from the OC, and then go on to negotiate with the DCA, then one has the chance of being able to hang on to some of that PPI refund - or even all of it, if the DCA is stupid enough to paint itself into a corner, and not be able to produce the original agreement. It can still be a battle of nerves, I reckon.