Barclaycard - Pay off with PPI Refund

[hottie132]

Hi There

can you please advise? I have received an offer of Barclaycard for a full refund of PPI. But they are only offering me the 8% simple interest. and saying that
the remainder of the refund will pay the debt off. But my argument is that LOWELL are chasing me for the debt, so should Barclaycard pay me the full amount, for me then to settle with LOWELL??
Hope you can help, dont know what course to take??Thank you.

[Bill-K]

Re: Barclays PPI complaints procedure

Hi Hottie. I'm afraid that is the standard practice when there are arrears due on a loan. The PPI )along with apportioned account debited interest) is first used to pay any arrears, and any remaining amount should then be sent to you. The 8% interest should be sent directly to you, though - but this is often a very small amount if the PPI was on a credit card.

I'm not altogether sure of the legality of this, when the loan has been passed to a DCA such as Lowell. I would say that - as it was Barclays who originally mis-sold the PPI, and then passed the debt to Lowells - then it is Barclays who are responsible for administering the PPI refund, and their obligation to 'service' the debt via Lowells comes before their obligation to you. I haven't heard of this being successfully challenged as yet.

If it can be shown that the account would not have gone into arrears if the PPI had not been sold, then there is an argument to be made for reclaiming penalty charges made to the account, and repairing an unfairly-blemished credit record. The FOS don't seem to be very helpful with such claims, though.

[hottie132]

Re: Barclays PPI complaints procedure

Hi
Thank you, but Pawnbroker (My Ex) lol! said tell Barclaycard to pay up and persue them for the full refund to be paid direct me, as they sold the debt to Lowells.
MBNA paid the PPI full refund direct to me, even though I still had a debt with them which was passed to Global Arrow for £7k.
Thank you for your help, perhaps I should settle for what they have offered.

[Bill-K]

Re: Barclays PPI complaints procedure

I had the pleasure of meeting Mr PB a while ago, and it's a pleasure to be chatting to you now, Hottie !!! By all means have a go and chase them for a full and direct refund to you. TBH, I'm not sure where they stand legally with using PPI refunds to pay off arrears, but I believe the FSA & FOS support this.

If they have sold the debt to a DCA, then they will have sold it to them for an agreed price (XX pence in the pound), and in that case, I guess it could be said that they then sold the right to pursue the debt themselves. It is then up you and the DCA to 'slug it out.' If you are making agreed repayments to the DCA, then an argument I might use would be that the PPI was mis-sold, and therefore should not have been a part of the debt in the first place. If the DCA has bought a mis-sold debt (ie., the PPI part of it), then that is a dispute between them and the Original Creditor (OC).

If you're up for it, good lady, then I'd be happy to support you, as this may well be an aspect of PPI reclaiming that needs properly 'nailing down.'

[hottie132]

Re: Barclays PPI complaints procedure

I'm up for it, so I've sent a recorded letter today asking for the full amount to be paid to me direct, as I have correspondance off Lowell stating they purchased the debt and Barclaycard have removed the account from there system??? so lets see what response I get, I will keep you posted. Thanks for your suppoort!:tinysmile_grin_t:....

[Bill-K]

Re: Barclays PPI complaints procedure

Apologies to Leclerc, who created this thread as an advisory 'sticky' thread. Hottie - we need to start a separate thread for this, now, as it is an ongoing claim, and not just a single question. I'll see if I can get Admin (or Sapphire - Gawd bless 'er cotton sox) to do this for you. Sorry - Sapphy - can you split the thread from posts #7 onwards to a new one for Hottie ? Maybe headed "Barclaycard - paying off DCA with PPI Refund ?"

OK - let's see what you get back. It's good that you have confirmation that they actually sold it to Lowells. This aspect of things has been mentioned before, but never properly resolved to my knowledge.

Say, for Example, Barclaycard added £2K in PPI and consequential penalty charges, and then £1K in apportioned account interest on that, then you have a claim for £3K of PPI. I'm ignoring any 8% for now, as it is beside the point. Barclaycard mis-sold the PPI, so it is their responsibility to repay the money they wrongly took.

They then chose (OF THEIR OWN VOLITION) to sell the account to Lowells, perhaps because you defaulted by too much, etc. etc. It may be argued that, if the PPI had not been sold, then the account would not have defaulted. Whatevva. The account was sold to Lowells at a discount (let them argue otherwise). It was Barclaycard who took the PPI - and NOT Lowells. You were not privy to whatever that shady deal was.

If, for example, the 'deal' was 50% of the balance owing, then Lowells paid 50% of the £3k which was included in the 'sold' balance. In my opinion, Barclaycard owe YOU the entire £3k, and it is then up to LOWELLS to successfully reclaim their £1500 from YOU initially. They may yet have lost their right to do that, but this will need to be established.

And this was the question that I believe has yet to be answered. If you were charged £3K in PPI, and the OC chose to sell the debt on at half price WITHOUT CONSULTING YOU - then why are you then not entitled to AT LEAST a 50 % rebate of the PPI you paid them ???

I welcome comments by my arch-enemy and sparring partner Turbo - and any others who can cast further light or clarity on this from their own particular viewpoints. That Pawnbrokers guy had good gut-feelings - and - I always DID admire his balls !!!

[dogtired]

Re: Barclays PPI complaints procedure

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