PPI HSBC after IVA

Piglet71

Hi. I took a loan out with Beneficial Finance (now HSBC) in 2007 and was "advised" to take PPI which I didn't need. In 2010 I started an IVA which included a debt to HSBC. In 2012 I was made redundant and used part of it to pay my IVA in full, my completion certificate states that Beneficial Finance will receive 100p in £ (although they waived their right to statutory interest).
I have now made a claim for the PPI and received an offer from them which is confusing.
The total redress is £2206. They mention arrears outstanding of £555 but state that the refund available to customer is £2206.
The letter then states that the current settlement figure is £555, there are account adjustments of -£972 (which seems to be unpaid ppi and interest) less total redress of -£2206 which means refund to customer after account settled is £2622.
The letter then states £2206 is the full and final settlement but then says that this amount will be offset against my liability to HSBC in order to clear my overall indebtedness.
Has anyone else had a similar offer and what did they actually receive? I am querying the arrears as my IVA was paid in full and I should not owe anything. Thank you.

dunstonh

The lender is allowed to offset the amount you didnt pay and they wrote off from the redress payment.

You should get the interest element of the redress. The capital element should go against debt with any surplus coming to you.

I am querying the arrears as my IVA was paid in full and I should not owe anything.

The IVA may have been paid in full but the bank was not.

Piglet71

Thanks for the reply, but surely if I have repaid the whole amount that was outstanding before the IVA then the bank has been paid in full i.e. because of my redundancy i was able to repay all creditors with 100p in £? I have been advised previously that because everyone received the full amount owed then this should have no impact on any ppi claim.

-taff

Best send them a letter outlining this with proof of payment.

dunstonh

but surely if I have repaid the whole amount that was outstanding before the IVA then the bank has been paid in full i.e. because of my redundancy i was able to repay all creditors with 100p in £? I have been advised previously that because everyone received the full amount owed then this should have no impact on any ppi claim.

if the lender received the full amount of the debt (i.e. the balance before the IVA) then they should not keep any money. However, if the debt was reduced as part of a settlement then they can keep the difference in the original debt and the amount received.

So, if there was no write off involved with them, you should tell them as such and provide copies of your evidence supporting that.