Successful PPI claim, BUT...

mickyt55

Hi,
I have recently been successful in claiming back the PPI I had paid on a loan with HFC bank back in '95. However, HFC (now HSBC) are saying that they will offset the award against outstanding debt on the account.

I got in to quite serious financial problems around that time and the debt I owed HFC was put in to the hands of a debt collection agency. After having paid a certain amount off the loan, through monthly installments, the debt collection agency offered me a settlement figure and I was able to raise the money to pay that figure. I considered that this left me with no debt to either the debt collection agency or HFC bank.

My question is; can HSBC do this? For more than ten years I have considered myself to be debt free. Now HSBC are saying that I still have a debt.

I really would appreciate any advice.

[Deleted User]

mickyt55 wrote: »

My question is; can HSBC do this? For more than ten years I have considered myself to be debt free. Now HSBC are saying that I still have a debt.

When the Bank agreed to write off your unpaid debt, they were simply telling you that they would no longer chase you for the money owed. This was their side of the bargain, yours was not to reactivate the debt by, for example, complaining that PPI was mis-sold.

The Bank are therefore perfectly entitled to off set the redress against money you failed to pay.
http://www.moneysavingexpert.com/banking/setting-off

Why did you think you could have full redress on a PPI policy which you effectively didn't pay for?

mickyt55

You haven't read my post properly.

The debt was paid off via an agreed settlement with the debt collection agency.

[Deleted User]

mickyt55 wrote: »

The debt was paid off via an agreed settlement with the debt collection agency.

The debt wasn't "paid off", a settlement was agreed whereby amounts still owed were written off.

It doesn't matter whether this was done via a debt collection agency or with the Bank directly. Most Banks have a close relationship with the Debt Collection Agencies they use and do not completely sell the debt on as you seem to believe they have.

I have read your original post completely already. I advise you to read the link I provided and accept that the Bank are fully within their rights in doing as they have done.

There really is no point discussing this further...

roonaldo

So what you're saying is you once borrowed money that you didnt pay back, but you feel they should pay you back? How does this work?

dunstonh

When a debt is written off, the agreement is that they will no longer chase you for the money. However, the debt still exists. They are allowed to offset the capital element of the complaint against an amount written off (or with arrears or defaults). The rules allow it and it is also quite logical. To expect them to pay you money that you never paid yourself is a bit silly. However, whatever you think, they are allowed to do it.