HSBC Offer on PPI but unknown deductions? trust deed?

Munger

I have had an offer from HSBC which is great but they have made a hefty deduction on it but not really explained why, I haven't had a chance to phone yet but does anyone know why from the below why they have deducted £477.84?

I dont have an account with them and haven't since this loan. I did however enter a trust deed which completed in 2008 so wondered if they are trying to sting me for this OR is it because I never actually paid the PPI/interest going into a trust deed (IVA type arrangement in England)

Paid PPI premiums and interest £387.79
8% compensation on payments made £475.86
20% tax deduction on 8% compensation - 95.17
Total redress £863.65
Approximate refund available net of tax £768.48

Current settlement figure £477.84
Less account adjustments - £477.84
Less total redress above - £768.48
refund to cust after account settled £768.48

premiums paid from 02/01/2001 to 4/11/2002 £387.79
plus interest at 8% £380.69
Unpaid PPI and interest £477.84

I accept the other of £1341.49 blah blah blah please pay £768.48 to me

[Deleted User]

It's the unpaid PPI and interest.

Not exactly 'stinging' you.

Munger

what do they mean by unpaid though?

is it because I never completed the loan as such that i cancelled early meaning I normally would've paid PPI on it?

there should be no outstanding balance after 8 years since the trust deed completion

I dont have an account/loan so there should be nothing unpaid

[Deleted User]

Munger wrote: »

is it because I never completed the loan

Pretty obviously.

You didn't pay the loan (or the PPI) to term. You don't receive a refund of monies you never paid in the first place...

-taff

With IVAs the company can keep any amount back if it covers arrears, loss of interest or defaulted sums.
Looks like it's the same in Scotland.

Munger

-taff wrote: »

With IVAs the company can keep any amount back if it covers arrears, loss of interest or defaulted sums.
Looks like it's the same in Scotland.

Even if the trust deed successfully completed over 8 years ago for a loan in 2002?

Any debts were written off with that trust deed and they would be over 6 years old now anyway so would that not have any bearing?

Munger

Moneyineptitude wrote: »

Pretty obviously.

You didn't pay the loan (or the PPI) to term. You don't receive a refund of monies you never paid in the first place...

That would be obvious, but why say Im entitled to it then take it off as arrears

thats what has confused me

-taff

Munger wrote: »

Even if the trust deed successfully completed over 8 years ago for a loan in 2002?

Any debts were written off with that trust deed and they would be over 6 years old now anyway so would that not have any bearing?

Doesn't matter. If you didn't pay off what you fully owed they are entitled to claw it back.
They showed you their workings out because otherwise they could be accused of not being transparent.
They didn't tell you you were entitled to it. They told you what the offer was, then they checked their records, then they deducted what you owed, then they gave you what they owed.

Nasqueron

You can't honestly believe that you can borrow money, not pay it back, use a debt plan to cancel some of the debt then ask for more money from them surely? They are perfectly within their rights to offset a refund against the money you owe them. A trust deed doesn't mean your debt goes away, simply that they agree to let you pay back less and not chase you any more

dunstonh

Any debts were written off with that trust deed and they would be over 6 years old now anyway so would that not have any bearing?

Statute barring only means they cannot come after you through the courts for the debt. The debt still exists. PPI redress can be used against arrears, defaults and debts written off. Whether it is statute barred or not.

That would be obvious, but why say Im entitled to it then take it off as arrears

They are showing you the breakdown. Nothing you have said suggests they have told you that you are "entitled" to anything.

[Deleted User]

Munger wrote: »

That would be obvious, but why say Im entitled to it then take it off as arrears

Where did they say you were entitled to a refund of money you never paid? They have simply agreed the PPI policy was mis-sold, but you are not then "entitled" to a full refund unless you paid in full for the policy.