HSBC Settlement Offer

Crazycat89

Hi All, 👋🏻 

I just wanted to ask and confirm my understanding of a line in a confirmation letter I’ve received from HSBC regarding acceptance of my settlement offer.

They have advised;

”As long as you pay the agreed amount we won’t ask you to repay the remaining balance. However you’ll still be liable for it. This means that if your due any redress in the future we may use all or part of it to clear this debt before you receive any funds.”

My understanding of this is that whilst HSBC won’t chase me for any further payments if for example HSBC suddenly owed me £100 for unfairly applied interest instead of receiving this it would be applied to the account? I just wanted to check this is correct before proceeding to settle.

Many Thanks

P.S this is my last debt on my DMP so general shout out and thanks to all those on this forum who have offered support over the years 🙌🏼

MyRealNameToo

Yes, they are offering a Partial & Final settlement offer, the debt isnt written off but they won't pursue it either. 

There one countenance to that is if compensation is due they'll use it to pay down the debt first. Doesnt sound overly unreasonable to me.

ManyWays

Can I ask how good the settlement offer is? And how long ago the account was opened, was it a card, loan or overdraft?

Crazycat89

MyRealNameToo said:

Yes, they are offering a Partial & Final settlement offer, the debt isnt written off but they won't pursue it either. 

There one countenance to that is if compensation is due they'll use it to pay down the debt first. Doesnt sound overly unreasonable to me.

Thank you! I did think that was the case but have had a bit of a time with HSBC and their customer service so wanted to be sure. 

ManyWays said:

Can I ask how good the settlement offer is? And how long ago the account was opened, was it a card, loan or overdraft?

I am keen to settle so probably offered more than most (but personal circumstances and all). I offered 70% of the remaining balance (£2179). Which they have accepted. The account was defaulted and fell off my credit file earlier this year so around 6/7 years old. It was a credit card.

sourcrates

I`m guessing you didn`t ask for a copy of the original credit agreement first, under sec 78 CCA (running credit agreements)?

Crazycat89

sourcrates said:

I`m guessing you didn`t ask for a copy of the original credit agreement first, under sec 78 CCA (running credit agreements)?

HSBC are the original creditor, so sadly unlikely they don’t have a copy of the original CCA. I also made a complaint to HSBC back in 2021 as couldn’t locate the original default notice (which they did later provide), so my relationship with them has been pretty constant 🤣