RBS PPI UPHELD - what happens if with DCA

[RHR59]

Hello, I am new here and hope that I can get the information I require.

Surprisingly I have just received an offer letter from RBS for PPI of £x's

HOWEVER.... the loan in question has been sold to a DCA quite some time ago as I had defaulted.

My question is... Will RBS send me the cheque in full as per the offer letter OR take this amount and pay the DCA?

I'd really welcome feedback based on similar circumstances.

[di30]

Re: RBS PPI UPHELD - what happens if with DCA

Hi and welcome

Well done on your success.

When you debt was sold on, did RBS send a letter enclosed with a letter from the DCA to confirm they no longer have no interest or liabilities of your account?

It can differ depending if it was an absolute letter or not. If you had these letters, do you still have them.

Did RBS actually state in the letter of the complaint they upheld of how it was actually going to be refunded? cheque? bank account? etc.

[RHR59]

Re: RBS PPI UPHELD - what happens if with DCA

Hi thank you for responding. I don't have paperwork re: absolute or not. In the offer letter it stated I would be paid by cheque within ... In the offer letter where I have signed, it also says "I understand that the offer will take into consideration any arrears on my account. The remaining balance if any will then be paid to me by cheque.

[labman]

Re: RBS PPI UPHELD - what happens if with DCA

There seem to be mixed approaches to this, and to some extent is seems to be the luck of the draw. There are various means by which they can lawfully apply the ppi reclaim to offset your arrears, and thus pay it to the DCA. Equally, even with arrears, some are paying the consumer.

Even with assignment in absosolute having taken place, they can still get round it if they wish to. Technically, to my mind, this is daylight robbery, as they've already had tax relief in selling the debt onwards, so they've had YOUR money back. Why should they then refund YOUR money, which they've had, to someone else of their choosing? It is happening though.

I'm sorry I can't answer definitively for you, but that is the current situation. :beagle:

[chris260483]

Re: RBS PPI UPHELD - what happens if with DCA

i had a ppi claim of which was in default wit a DCA (working on behalf of lloyds) and they paid me direct by bank transfer. call them and ask them to transfer you the money via bacs and see what their response is :tinysmile_kiss_t4:

[labman]

Re: RBS PPI UPHELD - what happens if with DCA

i had a ppi claim of which was in default wit a DCA (working on behalf of lloyds) and they paid me direct by bank transfer. call them and ask them to transfer you the money via bacs and see what their response is :tinysmile_kiss_t4:

Certainly wouldn't harm. If they have assigned it in absolute, you could also ask under what legislation they can offset a debt owed to a totally separate company, and no longer owed to them?

[RHR59]

Re: RBS PPI UPHELD - what happens if with DCA

Why? They already said they would send by cheque.

[labman]

Re: RBS PPI UPHELD - what happens if with DCA

Sorry, I thought you said in post 3 the offer would take into consideration any arrears on your account. This normally means if there is a balance of £800 with a DCA, and the ppi refund is £1000, taking into account the arrears, you would get a cheque for £200.

Posts 5 and 6 were designed so that in the above scenario we'd try to get you the full £1000, leaving you to deal with the DCA.

Hope this makes sense. :beagle:

[RHR59]

Re: RBS PPI UPHELD - what happens if with DCA

Perhaps I should simply call and ask the question... how much is the cheque going to be made out for? I would not wish to alert them to anything else!

[labman]

Re: RBS PPI UPHELD - what happens if with DCA

Does it bother you whether the money goes to paying off the money you owe the DCA, or whether it comes to you directly?

[Angry Cat]

Re: RBS PPI UPHELD - what happens if with DCA

Is the debt statute barred?

Further, if the debt is no longer owned by the Original Creditor: RBS, any current balance outstanding with the third party (DCA) remains the OPs responsibility. It has nothing to do with RBS now as they are no longer "the Creditor"!
Their only responsibility is to refund the mis-sold PPI monies.

[labman]

Re: RBS PPI UPHELD - what happens if with DCA

Is the debt statute barred?

Further, if the debt is no longer owned by the Original Creditor: RBS, any current balance outstanding with the third party (DCA) remains the OPs responsibility. It has nothing to do with RBS now as they are no longer "the Creditor"!
Their only responsibility is to refund the mis-sold PPI monies.

Correct in theory. In fact my current understanding is exactly that. If an OC tried to offset ppi refunds to a DCA, I would want chapter and verse on the legislation which allowed them to do this.

Sadly, quite often they are doing this though, and this needs to be challenged, especially in light of the facts that:

1. The debt will have been written off and offset against tax by the OC.

2. The ppi was probably a contract with a third party, separate to any original debt.

3. The debt has been assigned in full to a DCA.

Issues:

1. What exactly is the role of the burden of the contract here? Does the OC have an obligation to the ppi company which amounts to a burden.

2. The burden cannot be assigned. It can only be transferred through novation whereby the original contract is effectively extinguished and replaced with a new one.

[dogtired]

Re: RBS PPI UPHELD - what happens if with DCA

Its very confusing, I had two, both with HBOS, both "sold" to Cabot, one they paid to Cabot, which cleared the balance and I got £80, the other they sent me the full PPI refund and said the account was cleared but Cabot said not.
This went to FOS as I did get written confirmation from HBOS.
Cabot still insisted this letter was an error but never proved other wise.
With the help of LB I stuck it out and I got a letter from Cabot saying they were no longer pursuing it, but still thought they were right!

[Geraldine77]

Hi need some advise, I had missold Ppi on tesco credit card declined, and the FOS ruled in tesco favour. I was in financial difficulty and on Dmp. They sold debt to Idem. A few months ago I received offer of plevin payment but they wanted to pay Idem. They confirmed debt had been sold , and they had no clawback rights. Deed of assignment had been passed. Complained to Fos again and they ruled in tesco favour. They said tesco were buying back debt and as account was in arrears they would put monies towards balance. Could Anyone advise me please