RBS refund to IDEM

[Missb]

Hi, first post so please bear with me!
I have been successful in a ppi claim with rbs, however as the loan on which the ppi was missold was in arrears and sold to the Paragon group, I have been told that the refund of premiums will be given to Paragon to repay the debt. I understand and agreed that any debts to the rbs group coul be repair by the refund but this debt was sold to IDEM serving at the end of 2011. I justified in demanding payment directly to me rather than a third party company? Surely rbs no longer own the debt?

[Bill-K]

Re: RBS refund to IDEM

Hi MissB and welcome to you. Well done for reclaiming your PPI successfully. If the debt on which the PPI was charged is in arrears, then the PPI refund may be used toward clearing those arrears. Any refunded PPI still remaining should then be sent to the borrower. FSA rules, I'm afraid !!!

If you were entitled to some 'Compensatory' interest - usually awarded at 8% Simple interest - then this should be paid directly to you. With a fixed-amount loan, this may be a sizeable amount - but with a credit card loan, it may be minimal or even zero.

EDIT: I forgot to mention - whoever currently, AND LEGITIMATELY, 'owns' the debt is entitled to be repaid any arrears.

[Missb]

Re: RBS refund to IDEM

Thanks for reply. I am due to receive a cheque do the 8% interest payment but struggle to understand how rbs have sold the debt to a third party which surely means that the debt is no longer owed to rbs? Also, this debt should now be statute barred as it is from over 5 years since last payment/acknowledgement. If a debt is sold, why do rbs still have the right to pass on any refund of ppi?

[Missb]

Re: RBS refund to IDEM

While I am on this thread, does anyone have any advice regarding making a claim against First Plus from a loan from 2000? The loan was repaid in full but had a huge ppi premium added as we were sold the loan on the condition that we take out ppi. Barclays deny that there was ppi on the loan but I now understand that fp were not regulated by fos in 2000 so I am a bit stuck!

[Bill-K]

Re: RBS refund to IDEM

It was RBS who mis-sold the PPI originally, so your initial claim has to be with them. They may have assigned a DCA to collect the repayments for them (on a 'commission' basis) - or they may have sold the debt outright to a DCA. Whichever is the case, they will need to advise the DCA that the amount now being claimed must be reduced accordingly, and RBS will need to compensate the DCA for this. This is far simpler than having to slug it out with what can often become a long string of DCA's. Selling a debt to a DCA does not, in itself, mean that it no longer exists - and doing so may complicate matters. RBS are probably saving you a headache, MissB !!!

However, if we are considering the debt to be time-barred, then we may then need to deal with the current 'owner' of the debt. I'm no expert on the Limitations Act, but my interpretation of it is that you are now deemed to have acknowledged the debt - by reclaiming the PPI on it. So - I fear that it may not be time-barred - and the DCA currently at the bottom of the food-chain is entitled to repayment.

Having said that, there are others who maintain that ONLY payment toward a debt is deemed as acknowledgment of it under the LA. So - there may yet be mileage in your beliefs, MissB. I thus stand aside, and hope someone more versed in this aspect can contribute.

[Bill-K]

Re: RBS refund to IDEM

I doubt if a DSAR will get you any useful data now, but if you have any documents yourself with regard to the Barclays/FirstPlus loan, then that would be good. If not - then I think you face quite an uphill struggle to get a PPI refund on that.

If you're prepared to gamble a tenner, then you MAY be able to get some useful data from a DSAR. But you will need to be a bit of a 'forensic accountant,' I reckon.