HSBC - Credit Protection Insurance

[Demtootief]

Hello All,

 

I need some help pleeeessee. I had a first loan with HSBC and was advised to take out the 2nd one to repay the first one plus a credit card I was struggling with - even though i was having problems paying the first loan. Anyway what I am having problems with is how to interpret the Credit Agreement. I am posting the details here so that all you 'luvverly' people can get your great brains in motion, with a view to getting HSBC in the '........'.

 

Thanks in advance everyone.

 

Loan 1 taken out in April 2003

 

Principal Loan

Amountof Loan £15000.00

Total Charge for Credit £5766.00

APR 8.9%

Total Amount payable

under this Agreement £20766.00

Initial repayment £216.60

95 further payments of £216.32

 

Credit Protection Insurance Loan

Amount of Premium £4836.40

Amount of Loan £4830.00

Total Charge for Credit £1856.65

APR 8.9%

Total amount payable

under this Agreement £6686.65

Initial repayment £69.90

95 further payments of £69.65

 

I was then advised to refinance the above loan and incorporate a credit card that I was struggling with and so I took out this 2nd loan:

 

Principal Loan

Amount of Loan £25000.00

Total charge for Credit £7354.00

APR 6.9%

Total amount payable

under this Agreement £32354.00

Initial Payment £336.15

95 further payments of £337.03

 

Credit Protection Insurance Loan

 

Amount of Premium £7535.25

(including Insurance Premium Tax)

Amount of Loan £7530.00

Total Charge for Credit £2215.02

APR 6.9%

Total Amount payable

under this Agreement £9745.02

Initial payment £101.57

95 further payments of £101.51

 

I know that this is a very long post, however I wanted to give a true picture of the Loans.

 

Do I have a claim for misselling as I had a previous condition and I also had a job where I had good unemployment and sickness benefits and I was pushed into taking out these insurances.

 

What about when the first Loan was repaid, it does not appear as if I got any rebate.....surely I should have. Also what is Charge for Credit? Is this another term for an Arrangement Fee?

 

Thanks for your help?

[hellhasnofury]

Hello All,

 

I need some help pleeeessee. I had a first loan with HSBC and was advised to take out the 2nd one to repay the first one plus a credit card I was struggling with - even though i was having problems paying the first loan. Anyway what I am having problems with is how to interpret the Credit Agreement. I am posting the details here so that all you 'luvverly' people can get your great brains in motion, with a view to getting HSBC in the '........'.

 

Thanks in advance everyone.

 

Loan 1 taken out in April 2003

 

Principal Loan

Amountof Loan £15000.00

Total Charge for Credit £5766.00

APR 8.9%

Total Amount payable

under this Agreement £20766.00

Initial repayment £216.60

95 further payments of £216.32

 

Credit Protection Insurance Loan

Amount of Premium £4836.40

Amount of Loan £4830.00

Total Charge for Credit £1856.65 This is the interest they applied

APR 8.9%

Total amount payable

under this Agreement £6686.65 This is what you are after

Initial repayment £69.90

95 further payments of £69.65

I was then advised to refinance the above loan and incorporate a credit card that I was struggling with and so I took out this 2nd loan:

 

Principal Loan

Amount of Loan £25000.00

Total charge for Credit £7354.00

APR 6.9%

Total amount payable

under this Agreement £32354.00

Initial Payment £336.15

95 further payments of £337.03

 

Credit Protection Insurance Loan

 

Amount of Premium £7535.25

(including Insurance Premium Tax)

Amount of Loan £7530.00

Total Charge for Credit £2215.02 This is the interest they applied

APR 6.9%

Total Amount payable

under this Agreement £9745.02 This is what you are after

Initial payment £101.57

95 further payments of £101.51

 

I know that this is a very long post, however I wanted to give a true picture of the Loans.

 

Do I have a claim for misselling as I had a previous condition and I also had a job where I had good unemployment and sickness benefits and I was pushed into taking out these insurances.

 

What about when the first Loan was repaid, it does not appear as if I got any rebate.....surely I should have. Also what is Charge for Credit? Is this another term for an Arrangement Fee?

 

Thanks for your help?

 

Hello Demi,

 

Glad to see you back for further victories, and with HSBC as well:lol:

You do know that HFC who are part of HSBC were fined very heavily by the Financial Services Authority for mis-selling ppi:-D

 

I have highlighted the figures that you need in red above. Regarding the first loan they normally refunded the unpaid portion of ppi and interest into the balance of the loan therefore reducing it. Then they would pay that balance off with the new loan. They would not necessarily tell you this.

 

I would send of your prelim asking for them to return these monies to you with statutory interest of 8% as well. Put the figures on a spreadsheet and sent them a copy too.

 

Maybe mention in your letter that if there was a rebate, for them to advise you accordingly:-D

 

Just shout if you need help:-D

[Demtootief]

Thanks for the help Hell!!! Am indeed aware that HFC and Endeavour (already SAR requested), have been fined. HSBC have written to me 11/4/08 asking for a further 4 weeks to finalise their investigation. Do you think I should grant them that?

 

Thanks for your moral support!!!

[hellhasnofury]

Thanks for the help Hell!!! Am indeed aware that HFC and Endeavour (already S.A.R - (Subject Access Request) requested), have been fined. HSBC have written to me 11/4/08 asking for a further 4 weeks to finalise their investigation. Do you think I should grant them that?

 

Thanks for your moral support!!!

 

Hello Demtootief,

 

These companies are allowed 8weeks to investigate your complaint by the fos, but they will drag it on more if they feel like it:rolleyes:

 

With the bank charges, its prelimanary request, allow 14days, then send letter before action, allow 14 days, and then hit them with court.

 

I personally am on a mind to allow them a little bit longer to investigate, to give them a chance to respond, shows that you have given them ample opportunity to resolve your complaint, (looks good if you do take them to the FOS or court), but do not allow them to dictate. Your timelimits not theirs or they will drag it on forever.

 

If you do have to issue a court case, please do not use MCOL, there is very limited wordage to enter on this, just send the claim the old fashioned way a N1, which you will find on the bank template letter sticky on the main page of the forum, If you need help, just ask:grin:

[Demtootief]

Thanks Hell,

 

I was trying to do a MCOL for some credit card charges with Lloyds, however it kept saying that there was an error, now I am thinking that maybe it was for that reason.

 

Thanks for that. I will go and find this N1 and try to decipher what it all means. Tomorrow is rally the cut off date for Lloyds so I will get one to this.

 

Thanks for your help.

[hellhasnofury]

Thanks Hell,

 

I was trying to do a MCOL for some credit card charges with Lloyds, however it kept saying that there was an error, now I am thinking that maybe it was for that reason.

 

Thanks for that. I will go and find this N1 and try to decipher what it all means. Tomorrow is rally the cut off date for Lloyds so I will get one to this.

 

Thanks for your help.

 

You are more than welcome:grin:

 

Here is the link

 

4. Particulars of claim - N1 - hard copy version

 

Unfortunately you cannot save this copy to the pc. Your will have to do your poc on a document first and then copy and paste to the N1 document. You then print it off. If you have any problems shout please:grin: