Bank keeps sending small compensation cheques on old debt? Confused?

My wife run up a debt of £6000 with HSBC, basically she had a small debt and then ignored the letters re charges and about £4000 were just late fess/bank charges in circa 2005. I found out, approached the bank gave them a £5000 settlement and heard no more. Recently she has received a cheque for £50 as compensation for her experience, as in their words "service did not meet their standards". We did not cash it, they sent another, we still have not cashed it. My wife doesn't bank with HSBC anymore and we are suspicious of there motives, is this a pay off and there is more liability on their side, or as i expect 2005ish is so long ago any bank misdeed is to far gone in the past!
All thoughts gratefully appreciated. 

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  • FarfetchFarfetch Forumite
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    £50 is a standard compensation (or "go away" money if you like) - bank probably decided that they should have been better at dealing with the case, hence the offer. I'd cash it, it's free money. There is no "pay off" or liability, 2005 is a long time ago and any debts or complaints would be statute barred

    He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.

    -Harold Wilson


  • dunstonhdunstonh Forumite
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    Banks have been looking at historical debts and how they were treated.     The £50 is a base level that is commonly used.   I recall a transaction that was looked at on behalf of someone and they found no wrongdoing but paid £50 as default.   On another they found the person was out of pocket by about £1.20 but their minimum was £50.  So, they gave the person £50.

    Pay the cheque in.  there is no problem doing that.
    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.
  • Christian01Christian01 Forumite
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    My letter to HSBC after there £25 sorry offer.

    I used to have an account with your bank in the early 2000's. I had a Bank loan from you in which you Knowingly miss sold me a PPI. I first complained to yourselves and was swiftly refused. But after contacting the bank ombudsman and them speaking to you I was given a rebate which was fine for me but HSBC seemed to take the decision personally and waited for my next payment to fail before demanding closure of my account and immediate repayment of my debts as punishment for winning the PPI case. I didn't follow up this unfair treatment as was about to lose my business and had some health issues to which probably was made worse by the contempt and treatment that you showed me. Many times, I tried to get new terms or extend the outstanding loan to help me with the repayments I was only offered options that would cost me lots more i.e., you were offering to merge a smaller debt at high interest to my loan at a few Percent more than what I was already paying. I had rude people on the phone when I took the decision to stop my wages going into that account to regain control of my own income. It was at this time you closed my account and I should have taken this back to the bank ombudsman. You then instead of taking me to court to recover your funds to which you knew was unfair you just passed this to your debt collectors and they have chased (Harassed) me for over 10 years for this unfair debt. I feel the effect of this treatment to me can't be Measured and did lead me to quit my business. Now to make matters worse you have recognised after a review of your  procedures that this service fell well below your standers and have offered me a cheque for the sum of £25 pounds to rub salt in my wound's (ref hidden). And even a reminder to bank the cheque as you've noticed it wasn't banked. So, you've admitted poor service and think you're ok to fix it with this small sum. I've no idea how much compensation I would have received if did take this to legal. Things got so bad that I was using my Credit Card to repay my loan some months and was being charged overdraft fees that was higher than my account deficit I.E £15 overdrawn = £25 pound overdraft fee. They was happy to bounce back my loan direct debit and then charge me £25 overdraft fees only to bounce again after one week meaning one month repayment having more than one fee. It was my fear of these fees that made me start using my credit card to repay sometimes and they was cool with this and even encouraged this. They now have this complaint and have said they will look into the issue but I'm not holding my Breath. I will update this post when I hear from them.


  • Christian01Christian01 Forumite
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    Farfetch said:
    £50 is a standard compensation (or "go away" money if you like) - bank probably decided that they should have been better at dealing with the case, hence the offer. I'd cash it, it's free money. There is no "pay off" or liability, 2005 is a long time ago and any debts or complaints would be statute barred
    Special Circumstances and extend the 6 year limit on complaints like illness or bereavement.
  • FarfetchFarfetch Forumite
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    Farfetch said:
    £50 is a standard compensation (or "go away" money if you like) - bank probably decided that they should have been better at dealing with the case, hence the offer. I'd cash it, it's free money. There is no "pay off" or liability, 2005 is a long time ago and any debts or complaints would be statute barred
    Special Circumstances and extend the 6 year limit on complaints like illness or bereavement.

    6 years from account opening is a fixed date, even illness or bereavement does not extend that, it's in law and 6 years is more than enough time to make a complaint.

    I tried to read your wall of text but it's not really coherent - accusing banks of being vindictive is silly.

    He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.

    -Harold Wilson


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