HSBC deduction

muners

I received an offer from HSBC today for PPI repayment, however they have deducted over 3K for an outstanding loan? This seems to be left from 2004 when I paid off my loan after asking for a settlement figure and paying said settlement figure.
They have said on the phone that because I was offered a settlement figure after struggling, even though I paid the settlement figure they held the 3K on file, and now I am getting offered PPI repayment they are clawing this 3K back, is this right or should I go to the ombudsman?
Nothing is on my credit file regarding this the PPI department guy just said its one of those things that HSBC do.....

dunstonh

is this right or should I go to the ombudsman?

They are correct. They are allowed to use the redress against debts that are in arrears/defaulted or had an amount written off as part of a settlement.

It is also logical when you think about it. You didnt pay your full debt. So, to then expect them to pay you the full amount back when you didnt pay them the full amount, wouldn't be right.

Nothing is on my credit file regarding this the PPI department guy just said its one of those things that HSBC do.....

A lot of the banks dont record settled debts on credit files. However, most of them would use the right of set off and the rules allow them to do so.

muners

Thank you, I thought so, didn't know that there was any outstanding to be honest, especially as nothing showed up on my credit file before buying my house.
I appreciate the quick reply.
Thank you. :T