Refunds/accounts with outstanding debt

[di30]

Many of us are asked if refunds will directly be paid to themselves or to the debt organisation, if outstanding arrears.

I note here and there that this can vary, depending on circumstances and how lenient the businesses are.

So, what about if the bank has fully assigned all of its respective rights, title and interest in regards of the account?

What rights does customer's have once the debt has been fully assigned on to another debt organisation?

This I find confusing, because I have read that they have no rights to the refund if the bank/business fully assigned it elsewhere, so it's out of their hands.
And yet, on other posts, it appears that debt organisation can still receive the refund.

I do know if the debt still stands with the liable bank/business - the refund can be used to off-set the debt.

Cheers.

[di30]

Re: Refunds/accounts with outstanding debt

Damn it, think I may have posted this in the incorrect thread

[Undercover Elsa]

Re: Refunds/accounts with outstanding debt

Moved it to Reclaims for you Di xxx

[di30]

Re: Refunds/accounts with outstanding debt

Aww thanks hun.

Was debating where to put this, but it's good here, cheers sweetie xx

[Undercover Elsa]

Re: Refunds/accounts with outstanding debt

Thought I'd save you time...

Good thread..there is a lot of confusion about it. Logically once the account's been sold lock stock and barrel you'd think they couldn't use it to offset the balance, and often they don't seem to. But banks being banks, if they think they can get away with anything they will try...

Another thing which seems all wrong to me is when people think they can go the UE route but also try to reclaim. It's either/or as far as I'm concerned.
A reclaim is an admission of the debt and in my view if it's UE leave it alone UNLESS the reclaim would clear the debt. Otherwise just keep it as backup in the event of a claim being issued...

[ken100464]

Re: Refunds/accounts with outstanding debt

You would have thought once they have sold on they should not be able to offsett but as di says you do seem to see it.

Have also seen it then being taken off the DCA and then given to the punter as you would have thought should have happened.

Sadly think most of it is incompetence on behalf of the bank and ignorance of Joe Public as to who owns what. But it comes across as spite from the bank bit like closing accounts and the such when you have been successful.

Also agree with Elsa we are having a go at the banks for being immoral but then a claim and UE hand in hand dont seem quite right either.

I like to think each has its place in the scheme of things and as is always said each debt is different. Use different procedures for different debts.

We have been slow to get off the mark of UE but that mostly was us gathering information on each debt. Some we have used PPI reclaims and some we will try UE. But we are not trying both on one debt.

[di30]

Re: Refunds/accounts with outstanding debt

One of my mate's are dealing with Lloyds account, and his debt was solely assigned to I think cabot (cant remember what account as such, overdraft, insurance maybe or loan), and he lives in hardship, disabled etc and lives in a disabilty ground floor flat - adapted for his needs.

He received a letter back in early September with a letter from Cabot, and another letter enclosed from lloyds.
His case is with the FOS and recently been assigned to a adjudicator, so he is not sure where he will square off with this.

I don't want to build his hopes up, but what I did say was they seem to have a law of their own and do what they want to do.

[Undercover Elsa]

Re: Refunds/accounts with outstanding debt

Not keen on the idea that Cabot are enclosing Lloyds letters on this matter. Fingers crossed for him though Di xxx

[Never-In-Doubt]

Re: Refunds/accounts with outstanding debt

Well hang on. If Lloyds sold this in totality they have NO recourse to now speak with Cabot as that is a separate entity in its own right. DPA prohibits it because technically the new account (or transferred debt) is now owned by Cabot. The complaint about ppi refunds is direct to the bank and nothing to do with Cabot. Ok I'll rephrase, if you wrote to Lloyds about your mortgage would they copy in Cabot? No.

Same applies. You should get any refund directly. It should not go via Cabot or to the debt as they (Lloyds) have nothing to do with the debt. It's owned by Cabot.

Kinda like I owe you £50 and you owe my mate £100 so I give him £50 that I owe you which he uses to reduce your debt. Ermmm no. You never done a deal like that so it wouldn't stand.

[The Tech Clerk]

Re: Refunds/accounts with outstanding debt

When I had a PPI claim against a Bank they in the end payed me out directly, yet I was/still am fighting on a credit card front, and that was 3-4 years ago.

What I did find, I was originally having dealt with by Claims Company, after no movement after a very long time I cancelled the Claims Company and informed the Bank that I was dealing with the matter now, they wrote for me to confirm that I had ceased to use the claims company, shortly after I had the claim credited into my account.

[di30]

Re: Refunds/accounts with outstanding debt

Cheers folks.

Very interesting this.

I did tell him to keep me posted, because this can also be a help to others in the same position.

That does make sense as well Niddy.

The probs he has now is that he taken the case to the FOS, so wonder how they will make of it??

[Never-In-Doubt]

Re: Refunds/accounts with outstanding debt

The FOS shouldn't get involved. They will tell the bank to pay or not to pay.

They won't mention Cabot as they're irrelevant in all this, as stated in my last post.

[di30]

Re: Refunds/accounts with outstanding debt

The FOS shouldn't get involved. They will tell the bank to pay or not to pay.

They won't mention Cabot as they're irrelevant in all this, as stated in my last post.

Arh right ok, so should he let the FOS know about this anyway (the debt with cabot)?

Thanks.

[Never-In-Doubt]

Re: Refunds/accounts with outstanding debt

Why? It's nothing to do with Cabot lol

[di30]

Re: Refunds/accounts with outstanding debt

Why? It's nothing to do with Cabot lol

Exactly, and that's true.
I shall tell him not to then, thank you.