PPI Expert Help - Can the bank insist on giving my money to a third party ?

[tracied123]

Hi I am new, but I followed all of consumer action's advice on reclaiming PPI.

 

The bank upheld my claim and awarded me just under £10k this week for missold PPI I am disabled with Parkinsons disease.

 

The policy was added to the loan without me knowing

I was paying a loan at extorionate interest for many many years.

 

boy was I pleased to hear this I just sat and cried I never believed someone like me could get their money back......

I can only thank consumer action for this help.

This money would make a huge difference to me.

 

But then the bitter blow what someone gives with one hand they take back with another.

 

I took out at loan in 2000, the loan and the PPI was missold to me.

I am disabled with Parkinsons disease,

I suffer greatly,

I only rely on my pension money and the loan was sold to me as a business loan I have not got a business,

and there are lots of issues why the loan is wrong

I am negotiating with the bank to have the loan interest changed and the terms of the loan put back to what they should have been.

 

If it is upheld the loan would have in effect been paid of years ago.

 

The loan is in dispute and the bank set a credit collection agency on me,

but when I replied and told them that I wished to dispute it and provided proof that I would defend the action,

the Credit Collection agency looked at my case and declined to take it any further and referred it back to the bank.

 

I spoke to the Ombudsman and they wrote to the Bank notifying them to look into my loan complaint.

The bank were told to deal with my complaint by the ombudsman.

 

Instead what the bank are proposing is to take my PPI claim money and offset it against the loan and their costs and give it to the collection agency.

 

They have said I have 6 weeks to agree for my money to go to a collections agency.

 

The debt still remains in dispute and the bank have failed to look into the loan dispute.

 

I am arguing that the PPI was obtained illegally and remains my money and the PPI insurance and the loan are two legally different things. I have said whilst the loan remains in dispute I want my money repaid to me. Notwithstanding that there is tax to pay on this amount of money.

 

I know the law said that the banks must return the money to the individual if the policy was missold. Can they do as they see fit with an individuals money? Can they take it and just send it to whoever they want. I note that they have sent me a consent form but I have said no to signing it. I am not avoiding paying my debts but I want to have my complaint looked at properly and the loan dispute settled not for one branch of HSBC to pay it out and then settle a dispute to their satisfaction.

 

Any thoughts would be so greatly appreciated. Any Laws I could quote for them to repay my money to me.

 

 

Thank you first post I have ever done so thank you for reading my post.

[dx100uk]

if the bank still OWN the debt - they can.

 

check your credit file to see who owns it.

 

dx

[tracied123]

Hi thanks for your kind reply.

 

Its owned by Metropolitan Collection Services, who are owned by HSBC but effectively I cannot pay the loan to HSBC anymore as they say it has been passed to a third party collection agency, and also hence the Consent order for me to agree for the money to be given to them. So not sure about this point.

 

Secondly, the £10k is subject to tax, HSBC say in their letter that this money may be subject to tax and I should keep a copy to enclose with my tax return........ can the bank just use all the money when technically its not all theirs to use ie its gross and there is tax to come off of this amount . Ie if the cheque came to me, I would have to pay the tax on it and then theoretically use the remainder to pay the loan. So are they not just taking my money in full and doing as they see fit with it, when its not all theirs too use ?

 

Thank you so much

[gezwee]

The bank are entitled to set-off against any arrears on the account, beyond that the balance is due to you. Tax is recoverable on the 8% simple interest portion of the settlement only.

 

Did they supply you with a breakdown of premium refund, C.I/restitutional interest & simple interest?

 

And most importantly, are you satisfied that the figures are accurate?

 

Gez

[citizenB]

Sadly, Metropolitan are the collection arm of HSBC, so the account is still in effect owned by HSBC and yes.. they can offset against any outstanding balance.

 

IMHO, if they are going to use it to offset, I dont see why you should pay any bliddy tax either.. !