Hi everyone, New today, first post Sorry but it is a long one but to explain....
Back in 2001 I was a self- employed butcher and took out a mortgage, with my wife, with Abbey National. After paying off an extra 15k on the outstanding mortgage and 3 years later my business lease was coming to an end but as I didn't want to renew the lease, I wanted to buy a new business. Abbey would not entertain my request for equity release even though only 35k was outstanding on my mortgage (the property cost 120k in 2001). This is when my problems started.
Having been a customer of HSBC both personal and business, I approached them for a business loan. They knew my banking history, and was told that, yes, they would lend me the money, 40k,on a mortgage, but I had to move the my mortgage from Abbey to them even though it was at a higher rate of interest. They said I would have to have MPPI Life, at £55 per month, but my wife was turned down for this on medical grounds.Still not really sure on what grounds they were. At that time my business was a limited company, but the landlord of the lease on the new business would not let us proceed until the business became a partnership. So that was done going through all the right channels.
When the landlord decided to increase the annual rent by £8500 in 2010 and after going through some difficult times with the recession,we sold the business, sold the house, paid of the mortgage and relocated. Then wondered if I had been mid-sold PPI.
Wrote to the bank giving my reasons why I thought this.
* We were not told the policy was optional
*It was not made clear that we could shop around
*That the cover was on my life only although the loan was in joint names which I felt would put me at an unfair disadvantage.
*Being self employed we were not told about the exclusions relating to unemployment cover.
Received a acknowledgement within 4 weeks and a letter why I had been turned down 4 weeks later. Quite difficult to understand but briefly what they said was that the policy was not a PPI but a Mortgage Protection Plan that was designed to pay a lump sum assured in the event of death during the term, and that the level of cover reduces over a fixed period of time and that the amount payable is equivalent to to the balance outstanding on a capital repayment loan. Therefore being self employed would have no bearing on my ability to make a claim.
Don't really know if I had a valid claim in the first place now
I have since closed my account with HSBC. Fed up to the back teeth with them