HSBC stole my money

lizieloo222

In 2007 I had a few financial problems not being able to pay a HSBC loan and credit card, these were sold to a debt collecting agency and in Dec2007 I sold my house and paid both debts off in full.
April this year CSA, by mistake, made a payment to an old HSBC account I use to have, which was closed. After vast amounts of phone calls and time off work to speak to my local HSBC branch I finally found what they had done with my money, they sent it to the Debt collecting agency that I had already paid off. I have written to the bank to complain but it's been 4 weeks with no reply. I have contacted FOS, they told me to wait 8 weeks. HSBC's actions have kicked off a chain of events costing me dearly in charges for non payment of direct debits with my current bank Nationwide. Is there anyone that can advise on 2 questions I have. 1. Is HSBC allow to use my money in that way without notifying me. 2. Would I be entitled to compensation, as I havent been able to pay bills, which are now incurring charges costing hundeds of pounds! as I still havent recieved my money.

Many thanks

mrmajika

lizieloo222 wrote: »

1. Is HSBC allow to use my money in that way without notifying me.

Without knowing the exact T&Cs on the account it would be hard to say for definite, but, almost certainly, YES they can.

lizieloo222 wrote: »

2. Would I be entitled to compensation, as I havent been able to pay bills, which are now incurring charges costing hundeds of pounds! as I still havent recieved my money.

.......I'll let others answer that one....:D..... Brace yourself !!

dunstonh

1. Is HSBC allow to use my money in that way without notifying me.

Yes. The rules of offset allow a bank to to take the money (except for certain things) to use to clear debts with them or any other company within their group or the debt collection agency.

2. Would I be entitled to compensation

If the debt has been cleared and the money was passed on and kept by the debt collection agency then there clearly is grounds for a complaint to be answered in your favour.

jamesd

lizieloo222 wrote: »

they sent it to the Debt collecting agency that I had already paid off

If the debt was already paid off they should not have done that. Returning the money to the CSA would have been a more correct thing to do.

It's really CSA who should pay but HSBC also appear to be in the wrong and are a target that's more likely to pay.

Ultimate responsibility for the level of the costs is yours, though. You should assume that a payment will fail to arrive and have sufficient funds available to pay the bills if it doesn't. That could be cash or an arranged overdraft facility. Whoever makes the mistake would still be liable for your costs, they would just hurt you less before that happens.

If the debt hadn't been fully paid then HSBC would have been perfectly within their rights to act as they did.

PNPSUKNET

ask the dca it was given to for it back if settled in full before

willo65

I think a more suitable title would be "CSA gave my money to HSBC" as HSBC didn't technically steal your money.

Scousebird_2

Ask HSBC for proof that you still owe the debt-if you don't then ask them to credit your local branches Miscellaneous account and then take ID into the branch and they will cash it over the counter-or they will BACS transfer it to another UK account or send you a cheque-simple. Obviously you will have proof that you settled the debt with HSBC-as the company they sell it onto (Metropolitan Collection Services) is actually affiliated to HSBC. It is not the same business but is linked to the bank.