HSBC PPI offer received

teddy54

Hi all, I wonder if someone could offer an opinion.
I was contacted, as many others were, by HSBC saying I may have been mis-sold on two personal loans. Filled in the forms, and yesterday received a letter saying my complaint is upheld, offered £7K + on the two loans, including interest. That is the good news.......

The bad news is that I have outstanding debts with HSBC. I say HSBC, my dealings are now with DG Solicitors, I have an agreement which is up to date. The form they are asking me to sign is to allocated the FULL amount to Metropolitan Collection Services, which I assume is DG Solictors.

Obviously I am pleased that the complaint is upheld, but as my finances are still poor I would have really liked to receive some of the payment, just to make life easier for myself and my daughter (wife passed away 2 years ago, and financial problems then escalated).

My question is, am I correct in thinking that the compensation part of the payment (8% interest, a total of £1320) must come to me, and not be used to offset the debt? I seem to recall reading this somewhere.

My other question, I can see from my credit report that one of the loans has been completely settled, my memory is shocking, but I assume the later loan was used partly to clear the original one. As there is no balance outstanding, should I receive the full refund on this, or are HSBC entitled to offset this against the outstanding amount on the other loan? Clutching at straws maybe......

Any advise as usual would be most welcome from all you knowledgeable people out there, thanks!

teddy54

......... I should also state that DG Solicitors/HSBC still hold a 2nd charge on my property linked to my debt with them.

dunstonh

My question is, am I correct in thinking that the compensation part of the payment (8% interest, a total of £1320) must come to me, and not be used to offset the debt? I seem to recall reading this somewhere.

The capital should go to the debt and the interest to you. Although it is a grey area that seems to be used by some lenders and not others.

My other question, I can see from my credit report that one of the loans has been completely settled, my memory is shocking, but I assume the later loan was used partly to clear the original one. As there is no balance outstanding, should I receive the full refund on this, or are HSBC entitled to offset this against the outstanding amount on the other loan? Clutching at straws maybe......

Agreeing not to pursue you for the debt doesnt mean the lender cannot use the redress against any debt written off. They are allowed to offset the redress against arrears, defaults and amounts written off as a pre-agreed settlement.

-taff

You can certainly ask them for the interest, they can only say no.

teddy54

Thank you both for your replies, much appreciated.