HSBC graduate Loan PPI - Settlement Advice Please

[tooth_fairy]

Hi everyone-

Can I quickly pick someone's brains?

 

My husband has been in battle with HSBC over PPI on a Graduate loan for several months.

 

Now we are at a point of settlement but we do not agree with the terms being proposed by HSBC.

 

Basically due to being made redundant, he defaulted on the loan and it's now with PayPlan being paid back at £110 per month. We had a letter from CL Finance in November stating the loan had been purchased by them and a letter from HSBC stating the loan had been sold to CL Finance- all fine.

 

We were claiming for mis-selling because when he took out the loan he was self employed, we've now found the documents and the PPI shouldn't have been sold to someone self-employed, he was also told it was a requirement of taking out the loan to take front loaded PPI, the loan would be refused otherwise.

 

We made a claim for £1605.82 and they have agreed to that but they want to use it to reduce the loan, but as hubby has other HSBC debts, he want to split the debt pro-rata between the others as well. Should also add CCA requests submitted in November on all the debts he holds with HSBC are still outstanding.

 

Can we ask for a cheque and divide the monies or do we just accept it being taken from the loan?

 

Thanks

TF x

[hellhasnofury]

Hello TF

 

Welcome to the ppi forum,

 

If HSBC have failed to produce copy of agreements, they are in criminal default and the accounts are in dispute.

 

I would ask that the money be refunded to yourself, they should never have had it in the first place, and I do hope you are asking for interest on top to boot.

 

AlanfromDerby has just posted up some valuable info from the OFT re fitness to hold credit licences by creditors. You will find it in the court bundle sticky at the top of the ppi forum.

 

I would be reporting them to the oft re the cca section 77/78. If we all do it they build up a case against them:D

 

Take charge of this now and tell them what you want, not what they will do for you.

[tooth_fairy]

Yes that's including everything.

We have sent a letter saying yes we'll accept the money only if they will pay in cheque form not against the loan.

Have said we'll be willing to follow this through court if needs be.

 

Cheers,

TF x

[tooth_fairy]

Can anyone else advise on this please, HSBC say that they will not issue a cheque, only deduct from the loan, but as hubby has already paid the PPI (when he shouldn't have had to), he still believes that effectively, he is paying twice.

 

Just to add it is still under default for a CCA request.

 

Any advice would be gratefully received.

[freakyleaky]

As far as I know they are entitled to pay the money off an outstanding debt as long as that debt is in default. If you have kept to the payment agreement on the loan and there are no arrears on the account then they can't use the refund in that way.

[tooth_fairy]

Just to say, they have settled! Payment coming by cheque because they admit to widespread mis-selling and as the CCA request is in a long period of default, they will refund as soon as.

 

TF x