PPI Expert Help - Can the bank insist on giving my money to a third party ?

tracied123

Hi I am new, but I followed all of MoneysavingsExpert.com's advice on reclaiming PPI. The bank upheld my claim and awarded me just under £10k this week for missold PPI I am disabled with Parkinsons disease. The policy was added to the loan without me knowing I was paying a loan at extorionate interest for many many years. boy was I pleased to hear this I just sat and cried I never believed someone like me could get their money back......I can only thank Moneysavingexpert for this. This money would make a huge difference to me.

But then the bitter blow what someone gives with one hand they take back with another.

The loan and the PPI was missold to me. I am disabled with Parkinsons disease, I suffer greatly, I only rely on my pension money and the loan was sold to me as a business loan I have not got a business, and there are lots of issues why the loan is wrong I am negotiating with the bank to have the loan interest changed and the terms of the loan put back to what they should have been. If it is upheld the loan would have in effect been paid of years ago. The loan is in dispute and the bank set a credit collection agency on me, but when I replied and told them that I wished to dispute it the Credit Collection agency looked at my case and declined to take it any further and referred it back to the bank. The bank were told to deal with my complaint by the ombudsman.

Instead what the bank are proposing is to take my PPI claim money and offset it against the loan and their costs and give it to the collection agency. They have said I have 6 weeks to agree for my money to go to a collections agency. The debt still remains in dispute and the bank have failed to look into the loan dispute.

I am arguing that the PPI was obtained illegally and remains my money and the PPI insurance and the loan are two legally different things. I have said whilst the loan remains in dispute I want my money repaid to me.

I know the law said that the banks must return the money to the individual if the policy was missold. Can they do as they see fit with an individuals money? Can they take it and just send it to whoever they want. I note that they have sent me a consent form but I have said no to signing it. I am not avoiding paying my debts but I want to have my complaint looked at properly and the loan dispute settled not for one branch of HSBC to pay it out and then settle a dispute to their satisfaction.

Any thoughts would be so greatly appreciated. Any Laws I could quote for them to repay my money to me.


Thank you first post I have ever done so thank you for reading my post.

dunstonh

Unfortunately for you, the bank is allowed to use the redress to go against any debt in arrears or defaulted (or amounts written off).

Any amount above that will come to you.

However, on the upside, if the loan complaint is resolved in your favour, you will receive the money at that point as part of the loan correction.

I am arguing that the PPI was obtained illegally and remains my money and the PPI insurance and the loan are two legally different things.

It wasnt illegal. Plus, the PPI was front loaded as part of the loan. So, logically, reducing the loan is the right thing to do. However, for people not in arrears, the decision was made to allow them to get the money directly to spend as they wish.

I know the law said that the banks must return the money to the individual if the policy was missold.

There is no law that says that.

Can they do as they see fit with an individuals money?

They cant do what they see fit but they can set it off against unpaid debts.