1st credit bought debt from HSBC with PPI mis-sell.

Bagginsofbagend

Hello

This is my first time on the forum so please forgive me if I have posted incorrectly.

Over several years as a student, trainee professional, and working professional, I racked up a debt with HSBC.

Any how some years ago I lost my job (no fault of my own) and defaulted on my loan repayments. I was unemployed for many years and paid a fiver per month through a payment card. After a while stopped making payment (I know pretty bad form, I had never missed a loan payment for well over ten years). I would make sporadic payments.
I would get letters from Metropolitan Collection Services, sometimes they would offer to reduce the debt considerably if I would pay in full.
When I moved house I lost my card and couldnt find who it was that I had been making payments through, so have not made payments for possibly as long as a year. (Metropolitan stopped contacting me and I was getting letters from some solicitors).


Anyhow now at a new address I have received a letter from HSBC and 1st Credit explaining that the debt has been sold to 1st Credit.

In all of this I have realised that I had been mis sold PPI , I never actually realised I had PPI until I found my loan paper work from nearly ten years ago! Where do I stand with this situation, I'm sure 1st credit wont accept a PPI claim, on the debt they have just bought.

After years of being unemployed I am happy to be back working but I only get 20hours a week low paid work and have no assets.

The debt is for 7000 pounds, what do I do next? Who do I contact, the letter from 1st credit states that I shouldnot contact HSBC.

Any advice or pointers would be greatly appreciated.

happy_bunny_2

I think its HSBC for the miselling.

One way to find out, is to write to 1st credit, headed formal complaint, stating you wish to make a claim for miselling on the account. Send signed for. They should forward it.

No joy after 3 weeks, send to HSBC.

If first credit ask for money, just tell them you refuse to discuss until miselling PPI is sorted.

Ask on the reclaiming PPI board would also be good. Not sure if HSBC have to give you the money or can pay off the debt, as they no longer own it.

When did you take out the account? You mention paying for 10 years.

-taff

You complain about the PPI to the people who originally sold it to you [HSBC], but as you went into arrears they can claw back any redress to cover your default [ because they sold your debt at a loss, they can take the difference out of the PPI]

The PPI should have stopped when the debt was sold on, and unless they actually sold the debt on, the interest from the PPI would probably still be on the loan.
There's nothing stopping you making a complaint though, since they will usually pay the interest 8% portion to you even if they keep the capital redress if successful.


You can complain about missold PPI on credit cards also.

As a student, the PPI would have been useless to you, if you were working less than 16 hours a week, it would have been useless too.