Question on my PPI?

jimbo2

Sorry if this question has been posted before...

I took a loan out with HSBC after being turned down by several other banks. The loan was to clear another debt that was getting out of hand and HSBC told me that they couldn't give me the loan unless I took out PPI. The debt has now gone through to a collection agency and I am now in the process of a settlement with them.

Is there anyway of claiming back PPI and are those circumstances counted as being mis-sold?

dunstonh

Is there anyway of claiming back PPI and are those circumstances counted as being mis-sold?

As you describe it, it would be a mis-sale. If you can prove it then it should be easy for you. However, you won't see the redress payment if the complaint is upheld. It will go to the collection agency and reduce the debt. Only if there is a surplus amount after that will they pay that to you.

So, would the PPI refund be greater than the debt being written off?

Alpine_Star

dunstonh wrote: »

It will go to the collection agency and reduce the debt. Only if there is a surplus amount after that will they pay that to you.

I could respectfully ask if you have any evidence to back this up?

amersall

Sorry to but in!! but generally if you have arrears on a loan or cc or if it is passed over for collection and you claim mis sell of ppi, the "win" is taken off the money you owe. Some banks may give you the redress, but they cannot be made to. If you argue this, then even the fos cannot make the bank pay this money to you. Why would a bank have an account in arrears, then give you the money back?.

Alpine_Star

amersall wrote: »

Sorry to but in!! but generally if you have arrears on a loan or cc or if it is passed over for collection and you claim mis sell of ppi, the "win" is taken off the money you owe. Some banks may give you the redress, but they cannot be made to. If you argue this, then even the fos cannot make the bank pay this money to you. Why would a bank have an account in arrears, then give you the money back?.

You misunderstood.

The debt has gone to a ''collection agency'' as opposed to the collections department of HSBC and as such has been assigned to a third party.

Dunstonh has previously said, on another thread, that regardless of the fact that a bank debt has sold to a debt collection agency, any subsequent refund for PPI can be passed by the bank directly to the debt collection agency. Frankly I find this difficult to believe and will continue to do so until I see evidence to the contrary.

dunstonh

Frankly I find this difficult to believe and will continue to do so until I see evidence to the contrary.

I have no problem with that.

Alpine_Star

dunstonh wrote: »

I have no problem with that.

But no evidence.

Thanks for clearing that up.

src007

Alpine_Star wrote: »

Dunstonh has previously said, on another thread, that regardless of the fact that a bank debt has sold to a debt collection agency, any subsequent refund for PPI can be passed by the bank directly to the debt collection agency. Frankly I find this difficult to believe and will continue to do so until I see evidence to the contrary.

Dunstonh's comments do make sense and in my experience the banks do usually use the money to reduce arrears even when a 'third party' seems to be involved.

It's probably worth preparing for that eventuality because the FOS take the view that bank are allowed to use a refund to offset debt, as its money thats owed to the business.

dunstonh

But no evidence.

evidence is there as that is what companies are doing and the FOS have no problem with it. I just had no problem with you incorrect opinion as that is your choice.

goingcrazy

Hi there, I finally received a reply from Barclays Bank about my PPi. Their investigation is over and cannot provide a final response as Quote "Once the Court has provided clarification as to the standards against which your complaint should be assessed we will then be able to make a final decision. In the meantime they have registered my complaint and etc".

They also say if I'm unhappy with this outcome, I may now ask the FOS to review my complaint. They enclosed a copy of their leaflet.
My question now is do I wait for the material developments in the Court case or pursue my PPI claim with FOS?

src007

Your guess is as good as anyones.

The rumour is that the judge has made his decision and he's just looking for a date (when the court is free) to make it public. Hopefully we'll find out in the next few weeks.

It may be best to keep an eye out in the news, to see what the judge decides before progressing to the FOS? If the banks (or FSA) appeal, you could then go to the FOS.

If the judges decision draws a line under the matter, the complaint would be taken 'off hold' and bank will have to investigate again.