HSBC Loan PPI Refund Query

carlye83

Good morning MSE Forum,

I wonder if anyone could help me with this query?

My husband had a loan with HSBC from 2007 which ran it's course and was fully paid off and finished in 2010.

In May this year HSBC wrote to my husband and said that he may of been mis-sold the PPI etc.

To be honest my husband said that he didn't even realise that PPI was optional when he originally took out the loan and just thought it was contractually a part of having the loan.

Anyway, we filled in the form/s and sent them back to HSBC, a couple of weeks later HSBC replied acknowledging the case and said they would come back to him withing 8 weeks of the original complaint.

Well that date has come and gone now and we've not heard anything from HSBC, so I'm guessing the next step it to take the matter to the financial ombudsman service?

Which isn't the problem, my actual query is early in 2013 my husband took out a new loan with HSBC, which is to run it's course of five years. (PPI free this time!)

What I would like to know is, IF HSBC do make an offer of a PPI refund for my husbands previous loan, will it be used to off-set (if that is the correct term?) against his current loan, or will it be offered direct to him?

To be honest I don't know why it should be off-set against his new loan as that has all it financial terms set out and agreed too when he took it out and it's a completely different matter to his previous loan?

Can anyone shed any light on this for me please? Thank you.

societys_child

You'd be better phoning HSBC before taking it to the FOS (there's an awful long queue)
If your complaint is upheld (and the current loan is not in arrears) any redress should be paid to your husband.

carlye83

Thank you for your advice societys child. We did as you advised and it paid off, got a letter with an offer for £771.91 from HSBC!!
Patience IS a virture.
Thank you again for taking the time to reply to my query.x