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PPI, HSBC refusing 50/50 split

My ex husband and I had a large loan with beneficial finance, now owned by HSBC.
In September I applied for PPI, I told them that my ex and I are no longer together. He is still paying off the loan to them.

We have had an offer of £8000 PPI they will take off what he still owe's on the loan and that will leave around £1400.

We have both requested that they split this amount 50/50 however they say they cant! the only way they can do it is for both of us to sign the same form and deciding who's account the money goes into.

Can they do this?
I would no trust my ex husband as far as I could throw him so me letting him have the money in his account to then give me half is not something I would be willing to do. He is being an idiot and says he would rather not have the money then let it go into my account, even though I have always been honest with him when it comes to money etc.

I should also ask he is getting a very good end of the deal! as he will no longer have to pay off the loan. When we split the debts were split and I have already paid off my half of it.

Any advice would be much appreciated.

Comments

  • dunstonh
    dunstonh Posts: 121,292 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    We have had an offer of £8000 PPI they will take off what he still owe's on the loan and that will leave around £1400.

    That method normally only gets applied when the loan has arrears or is default.
    Can they do this?

    If its in arrears/defaulted then yes they can. If its not then they should not do it. The methods are defined by the regulator and FOS. The banks generally follow those correctly.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • milso
    milso Posts: 10 Forumite
    Seventh Anniversary Combo Breaker First Post
    Many thanks for your reply, sorry if I wasn't clear in my original post.......I am not disputing then taking what is owed out of the ppi, i just want to know why they can't just split what's left after paying the renaming balance between the two of us
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    milso wrote: »
    Many thanks for your reply, sorry if I wasn't clear in my original post.......I am not disputing then taking what is owed out of the ppi, i just want to know why they can't just split what's left after paying the renaming balance between the two of us
    For some reason, the Bank requires you both to sign the form enabling them to pay it into a designated account. Normally on joint accounts the redress can be paid individually to the account holders, so you need to clarify exactly why they will only pay into one account.

    Is it really impossible for you to liaise with your ex and arrange to split the money between you?
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