HSCB PPI claim on a £13k loan

Simbeanie

Forgive my naivety but I'm new to this website so I may not make much sense at first... Hoping someone can help!! This thread relates to a query which involves a PPI reclaim from HSBC, on an old debt which is now with Lowell Financial, and how the fact that its with Lowell will affect me if the PPI Claim is honoured...

Background

I have a large debt from a 9 year old HSBC loan account (took it out in 2005). Its been with Lowell Financial for what seems like forever (a good few years) and I currently pay them £26 per month. I also have access to experian online. I note from my credit file that there is no mention of the HSBC outstanding debt on there whatsoever, and there never has been. My credit file was affected 6 years ago by another debt when I got into difficulty paying a Halifax account due to losing my job. That problem was clear on my file, but can confirm 100% that there is no mention of the HSBC account at all on my file. My current credit rating is currently at "866 - fair." Have I just been lucky that the HSBC debt doesn't show on my credit file??

My Questions

So, I received a letter from HSBC 2 weeks ago saying they think they have mis-sold PPI to me on that loan. I wrote to Lowell asking them for a copy of the original loan agreement and I now have a copy of this. I used the details from that to fill in the questionnaire and I sent it back to HSBC. I am currently inside the 8 week waiting period for them to send me a response to the PPI claim. Fingers crossed!!

However, in terms of the Lowell side of things, I am wondering how they purchased the debt from HSBC originally, is there a document that they have to provide me with in order to prove that they bought the debt? some form of contract between them and HSBC? If there is will that be able to shed any light on whether or not they have to pay me the refund, or whether they have to pay it to Lowell? And, if they can't provide one to me is there a chance that I may not have to continue to pay the debt that they say they bought? I am thinking that I've been quite fortunate that this debt is not on my credit file and I'm a bit wary of doing or saying anything to them which may result in them suddently updating my credit file. Especially seen as I have only just this year managed to get my credit rating in good order!

A refund of PPI would make a massive difference to my lifestyle, even if I only get a few hundred pounds back. I have to be honest, I have no idea at all how much I might stand to reclaim if they do uphold my claim. I didnt even know what PPI was or that I had bought it until the HSBC wrote to me! They say they may have mis-sold it to me....turns out they did a really good job as I wasn't actually aware that they had sold it to me!

It also weighs on my mind that if the HSCB do uphold the PPI Claim and make a refund to me, that they may pay it straight to Lowell. Is there a chance that they will do that, and are they allowed to do that?. The original loan was for £13k to consolidate debts, and it consolidated a HSBC cred card which prob also had PPI on it... I have also asked them to have a look at that for me. Might as well try to have a positive attitude about it!

Does anyone have any comments on this?

Thanks in advance!

Simbeanie x x x

-taff

If they have merely passed the debt to Lowells, not sold it to them, then your redress will probably go against that and against any amounts they wrote off due to you not paying it. [of interest or of debt]
If they have outright sold it to them then you should get the redress back as a cheque.
It all depends on the debt circumstances. Without knowing the exact situation, it's difficult to say absolutely which one it'll be.

Simbeanie

Thank you to both taff and amersall. I will keep you updated as the matter progresses. You've been really helpful and I appreciate your comments. I still have a few more weeks to wait before HSBC give me their decision... Thanks. Simbeanie

amersall

You are welcome, fingers crossed x