Hsbc

A question about : Hsbc

Hi there

I have a DMP arranged in 2009 with Stepchange.
The only creditor that refused to accept my repayment offers were HSBC. I had an Overdraft, loan and credit card. They hounded me until I gave in to them, consolidating the balances into a managed loan. I have been unable to pay the whole repayment amount of 235.00, and was paying them 216.00 per month. I now have these arrears to pay off.

I have now found 2 loan agreements with HSBC, that clearly shows that I paid PPI on these loans. I always refused this insurance, so this was a surprise.
I am now going to try to reclaim this insurance.

My question is: If HSBC agree that this insurance was mis sold and refund the payments, are they likely to keep the whole amount to offset this against the arrears on the managed loan or are they able to keep the whole amount to put towards the loan.

Best answers:

• There are some circumstances/banks who will take the capital off the loan and give you the interest element but chances are they will just offset it against the debt which will save you money in the long run - unless they agree it was miss-sold straight away you will be in for a long wait so keep plugging away for the moment (e.g. if they reject and you refer to FOS you can be waiting 18+ months)
• Thank you both for your replies.
  That is as I thought, I do want to have this loan paid off ASAP.Its just that I would have liked the choice, considering if the bank agrees that I mis sold it is my money.
  On the other hand, bringing the loan down is would I probably put it towards to anyway.