Ppi on consolidation loan question

AppleDap

Hi
Looking for a bit of advice please.

I've had a letter from HSBC stating that I might have been misssold ppi. It doesn't give a date or loan number, just a reference number. Which relates to a loan taken out in 2005.
This prompted me to dig out the paper work, as I previously didn't think I could claim on loans where I had signed in front of an advisor in the bank.
They mentioned in the letter the reasons it may have been misssold, and when I checked the paperwork and reading this forum it does seem to apply.

I had quite a number of the single premium Loans from the mid nineties to around 2007, mostly consolidating. I have most of the paperwork and bank statements for these. the last one I took out a mortgage with the same bank and consolidated the loan.
My question is if they uphold the claim will the redress be used to reduce the mortgage with them which is still active ? as I understand this is what would be done with a personal loan. All the loans were personal unsecured loans.
Many thanks

AppleDap

Any advice on this please ?

-taff

No, They can only use it to reduce arrears or defaults on loans, but not a different product.

Unkess you ask for it to.

AppleDap

Hi Taff, thanks for your reply. The mortgage is made up of two separate loans. One paid off my previous mortgage and the other is a home owner loan mortgage. Which was taken out to consolidate the loan and a few credit and store cards. It was a condition that it was used to pay off the personal loan otherwise they would not have approved it. When the mortgage home loan was drawn down they automatically used it to pay off the personal loan. Would this make any difference ?

AppleDap

Hi
If the last of a string of refinanced personal loans with ppi are refinanced into a home owner loan (mortgage ) without ppi and the complaint is upheld, would the bank restructure the mortgage ? They are all with the same bank ?

-taff

They're not likely to restrucuture the mortgage unless the PPI amount rolled over was huge. They're more likely to include it in their calculations.