Yes I agree it is very strange. But the letter quoted the amount I asked for in one paragraph and this larger amount in the next paragraph. Letter and settlement form was made out to me so I have signed and returned already!

Hello Everyone This is my first post. Thought I was about to have to ask for advice about legal action but I just got an offer to settle today!!!! I wrote my first letter to the HSBC on 21st May and got a standard "looking into it" reply. Sent a "Letter before action" on 19th June but heard nothing. This morning I decided to write one more letter saying I would commence legal action if I did not hear from them within 7 days. Was on my way to post the letter, checked my letterbox and there was a settlement letter! For some reason they have offered me not only the amount in full but £396 more! Even though there was only £100 of new charges since my first letter??? Amazing stuff! Thanks for all the advice I have read on here. It is all obviously spot on! Shall make a donation now!