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Refund from HSBC being used to reduce my mortgage can they do that??

Hi all
Yes won my case but HSBC have decided to reduce my mortgage arrears with them. I heard of setting a side rule but can they do this with my refund?

Comments

  • dunstonh
    dunstonh Posts: 121,409 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If you are in arrears, defaulted or had amounts written off then the lender can use any redress against your debt.

    So, the answer is yes. They can.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Why would you not want them to?
  • Would prefer to choose how I spent my money not dictated to by a bank that mis sold ppi to me
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Great, stay in mortgage arrears then. that'll show em!
  • dunstonh
    dunstonh Posts: 121,409 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Would prefer to choose how I spent my money not dictated to by a bank that mis sold ppi to me

    If you had paid the debt as you agreed to then you would have got the refund. Problem is that you havent paid them. So, they dont have to pay you directly but use it against the debt.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • SuperHan
    SuperHan Posts: 2,269 Forumite
    Part of the Furniture 1,000 Posts
    Isn't it obvious, _Andy_? You know the old saying, better to have your house repossessed, but have some money that you never really missed in the bank...
  • Point taken guys but almost caught up with the arrears now with repayment plan both sides were happy with, still this should clear it and them-some!
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