After a bit of help

[adviceneededpl]

Dear Group,

A lot of searching has brought me here. I have received a letter from MBNA today saying they uphold my PPI claim and are going to refund me over £3000. It says a cheque will arrive within 28 days as full and final settlement.

My question is this is a credit card debt, MBNA have sold this debt on, I have all the paperwork relating to this. I want to know will I still receive the cheque as they have promised or will it get taken off my balance.

I am asking this as I could clear other smaller debts with this money which would in turn allow me to pay higher payments to my other debtors with whom I have agreements in place.

I do not want to just spend it willynilly, I am trying to look at the longer term and reduce my debts quicker and I feel by clearing the smaller ones it gives me more to pay the others.

Our problems occurred when we only ended up with one income and have struggled through ever since.

Thank you for reading and in anticipation of your help.

[Undercover Elsa]

Re: After a bit of help

Hi and welcome to AAD!

If the letter states that they will be sending you a cheque then hopefully that's exactly what they'll do, if the account's been sold lock stock and barrel.
I would think if they still have an interest in the debt they would have stated that a refund would be made to reduce the outstanding balance.

If it was me I wouldn't count my chickens though until the cheques in the bank

[di30]

Re: After a bit of help

Hi and welcome

Well done on your success.

When the debt was sold on, do you know if it was an absolute assignment or equitable?

What I mean is, if assigned, the dca that taken over have full responsibility over the account, so even though the bank dealt with the mis selling part, so therefore it should come back to you direct.

If equitable, it means that the debt was not fully assigned as such, as the bank still has dealings with the account with the help of the DCA.

However, going by your post it does look as if the refund is being paid to you.

Any probs let us know, but there is no harm in you double checking with the bank just to make sure.

Good luck and well done, and please let us know, cheers x

[di30]

Re: After a bit of help

I have been looking more into these issues because I know it can be confusing.
A bank can use their own collections dept, and in that case where this is debt, they usually do use the refund towards the arrears.

And on researching and information from Niddy and other consumer sites, once a debt if fullly assigned to a Debt collection agency, where they have taken over all rights, title and interest, this is fully assigned as absolute, so the refund should realistically come back to the customer.

Look here below too.

Deed of assignment
Re: what is a deed of assignment?
Absolute - the DCA owns ALL the rights and duties of the original creditor and can enforce the agreement through the courts in their own name.

Equitable - the DCA has the right to collect the debt, but needs to work with the Original Creditor if legal enforcement is required. Also they may need to refer to the Original Creditor over certain matters

No deed of assignment no legal standing!

[vossy]

Re: After a bit of help

Stuff the rest of them, bank the cheque and enjoy.

Why not put your debt problems on here and see if some of the experts can help you in any way? In reducing your debts there is more than one way to skin a cat, you have nothing to lose and everything to gain.
Read through the forums thoroughly and take heed from all the success stories here.

Well done on this success

[ScabHunter]

Re: After a bit of help

I'd just sit tight with this one, and not poke anything. They've promised to send a cheque, so wait 28 days to see if that happens. You can always argue later if it doesn't happen.

SH

[di30]

Re: After a bit of help

I'd just sit tight with this one, and not poke anything. They've promised to send a cheque, so wait 28 days to see if that happens. You can always argue later if it doesn't happen.

SH

Yes, that is probably a good idea.

[adviceneededpl]

Re: After a bit of help

Thank you all for replying, I am inclined to just wait and see what happens.

Whichever way I look at it, I still won even if reduces the original debt.

[adviceneededpl]

Re: After a bit of help

To Di,

I have reread the assignment letter, MBNA have sold it lock, stock and barrel, the letter from them says my account has been terminated.

[di30]

Re: After a bit of help

To Di,

I have reread the assignment letter, MBNA have sold it lock, stock and barrel, the letter from them says my account has been terminated.

Hiya
It should therefore be refunded directly to you then.
See if they send this by 28 days in the post, any problems let us know.

[Never-In-Doubt]

Re: After a bit of help

I posted about this earlier

Hiya, Di30 is the best to advise on reclaiming but regards the account type and reclaiming etc with UE well, I may be able to help a bit with that side....

Ok, when you go for UE usually you cease repayments so reclaiming would be futile as any refund would always go toward the debt first unless they've assigned it in totality (absolute assignment) in which case they *may* send you the refund of missold premiums.

Thats why unless you think it'll clear the debt balance, we always say leave any reclaims until it gets as far as court - otherwise it's worthless unless there will be a positive effect at the end, ie cash in your pocket or total balance wipeout.

So, onto your query, if you do any reclaim against your bank they cannot close down any current accounts you may have with them, I mean any accounts, not current as in bank accounts. So, although we always suggest getting a parachute account *in case* they play silly buggers, they shouldn't be doing it.

The reference you quote is not PPi as such it was the insurance element that worked the same as PPi currently does but based on the length of time you've held the product I suspect you'll find it was pre-FOS which could pose issues (ie GISC etc).... As I say, Di is best served on this part but basically the bank should not revoke the facility in the event of a claim however that's not saying they won't remove the whole facility - but then again the amount x 12 x 18 x 8% (interest) will be quite a lot

Best of luck

[Never-In-Doubt]

Re: After a bit of help

In a nutshell, if you find the lender has assigned the account in totality (absolute assignment) and then you do a reclaim (not wise if chasing UE - see my last post above) they should send the funds to you as they cannot send the money to the DCA as the DCA is nothing to do with this part of things.

I posted a more in depth reply to this but for the life of me can't find it, pointless searching my post history as there are millions of bloody things

[adviceneededpl]

Re: After a bit of help

Thank you again for the information, I will let you know if I receive the cheque or another letter.

I acknowledge the debt and pay monthly an agreed amount by direct debit so I may be a bit dim but will not be doing anything about the UE thing.

Your forum is very useful and I appreciate your help.

[ken100464]

Re: After a bit of help

Adviceneededplease.

I got an uphold on a sold debt and got same letter as you.

Got cheque so doubt you will have problems with that.

However do you have a SAR from this shower?

[di30]

Re: After a bit of help

Adviceneededplease.

I got an uphold on a sold debt and got same letter as you.

Got cheque so doubt you will have problems with that.

However do you have a SAR from this shower?

That is fab Ken.
and looking hopeful for "Adviceneededplease"

Was your complaint resolved direct with the bank/business or the FOS?

Reason why I am asking, is that recently I have been looking more into how refunds are being made, once the debt's sold on fully in title/interest and benefit etc.

My friend has a case within the FOS, and his debt was sold recently by an absolute assignment, but just not sure how the FOS would see it if he were successful, by either the refund being paid directly to him or the OC (original creditor) despite the fact it was fully assigned/sold to the DCA), or if they state as they have details from the Original creditor of the DCA and it has to go to them.

Time will tell I suppose, and there does seem to be a mixture of this going on, if you get my drift?