My HSBC Personal Loan - Some Guidance Needed

[YV01]

Hi everyone,

 

I took out a loan with HSBC back in October 2007 to pay off student debts - overdraft, credit card etc. I was looking over my agreement this morning and decided that I should cancel the Protection Plan: 1) As I don't feel I'm gonna need to use it; 2) I've heard a lot of bad reports from people who have lost their jobs etc. only to find out that the bank will not honour the Protection Plan; and 3) It is adding £1,071 to the amount I have to pay back. I know now that I should not have taken the Protection Plan form from the beginning, but I was made to believe at the time that I had no choice but to take it. I am currently paying £93.93 evey month towards the loan.

 

I phoned HSBC this morning to be met with a very friendly member of staff. This surprised me as it is the first time in 8 years that this has happened. I explained that I wanted to cancel the Protection Plan as my agreement said it was optional. I was told this was no problem and was put on hold while they worked out my new payments. I really thought this was great as I was going to save myself some money :shock:

 

When the Advisor came back she told me that if I cancelled the Protection Plan my repayments would go from £93.93 a month to £117 a month - nearly £25 a month more than what I'm paying. She came off with some waffle about what I've paid so far has just been interest and not capital so by cancelling the Protection Plan I have to start paying interest again.

 

Please please can someone advise me. Can the bank do this? I've had nothing but problems with HSBC from the day I joined, with bank charges etc. I thought today maybe something would work in my favour, but this is ridiculous.

[alanalana]

Hi everyone,

 

I took out a loan with HSBC back in October 2007 to pay off student debts - overdraft, credit card etc. I was looking over my agreement this morning and decided that I should cancel the Protection Plan: 1) As I don't feel I'm gonna need to use it; 2) I've heard a lot of bad reports from people who have lost their jobs etc. only to find out that the bank will not honour the Protection Plan; and 3) It is adding £1,071 to the amount I have to pay back. I know now that I should not have taken the Protection Plan form from the beginning, but I was made to believe at the time that I had no choice but to take it. I am currently paying £93.93 evey month towards the loan.

 

I phoned HSBC this morning to be met with a very friendly member of staff. This surprised me as it is the first time in 8 years that this has happened. I explained that I wanted to cancel the Protection Plan as my agreement said it was optional. I was told this was no problem and was put on hold while they worked out my new payments. I really thought this was great as I was going to save myself some money :shock:

 

When the Advisor came back she told me that if I cancelled the Protection Plan my repayments would go from £93.93 a month to £117 a month - nearly £25 a month more than what I'm paying. She came off with some waffle about what I've paid so far has just been interest and not capital so by cancelling the Protection Plan I have to start paying interest again.

 

Please please can someone advise me. Can the bank do this? I've had nothing but problems with HSBC from the day I joined, with bank charges etc. I thought today maybe something would work in my favour, but this is ridiculous.

 

They do this quite often my case resulted in a reduction but not by the monthly amount of ppi insurance I was paying the FOS complaint eventually resolved this.

 

You are better to start by gathering all the information unless you have kept copies of all your consumer credit agreements and other paperwork. If not you can request the data using the Subject Access Request as per the Data Protection Act 1998 a legal statute in law.

 

Full SAR for ppi and another one...

 

Data Protection Act 1998 - Subject Access Request

 

You can be specific with what data you request although the Subject Access Request is really asking for everything. The Statutory fee is £10.00 Postal Order is fine but keep the details of the number for future reference. Send all correspondence by at least recorded to be signed for so you can track delievery through Royal Mail.

 

The things you should get from a Subject Access Request are:

 

True copies of your Consumer Credit Agreements (CCA) with the terms and conditions that were applicable to the agreement at the time the loan started.

 

Copies of all your statements.

 

Copies of all correspondence with regard to the loan, letter, fax, transcripts of phone calls or transcripts of phone calls, or other notes taken by them during the calls.

 

Also be specific in your request for full disclosure on any PPI added to the loans this should be identifiable on the CCA.

 

Specifically request the needs and wants/Customer duty of care questionnaite which should have been completed at the point of sale. This questionnaire should be filled out by the bank advisor to ensure all the relevant questions have been asked to ensure the product is fit for purpose and suitable to your needs. See this as an example.....

 

When you send your Subject Access Request you should ask for evidence of the questions asked at the point of sale.

Please see this link for an example:.....http://wwwa.mbna.co.uk/insurance/files/CP0608_INSU_MB_LP_S.pdf

 

The data requested should be data in any format that their organisation uses for filing, electronic, paper, microfiche, CD, Floppy, Magnetic tape.

 

Please have a read through the following links for further information.

 

PPI - Some Notes for Claimants..

 

For claims before 2005 and the FSA ruling from which campaign

How to tell if you’ve been mis-sold PPI

 

Quick check: were you mis-sold? - How to tell if you’ve been mis-sold PPI

 

Another useful site to help you reclaim missold PPI UPDATED 16 JUN 08

Reclaim your PPI premiums - payment protection insurance | This is Money

 

This is a little snippet from the above link....

Quote:

Can I reclaim on any PPI policy?

Your claim for compensation is dependent on when you took the insurance. PPI sales only came under the jurisdiction of the FSA on 14 January 2005. Any sales made before then are not covered by the latest rules.

However, it may still be worth complaining to your lender if you feel you have been mis-sold. If you bought before January 2005 it is likely that they will have been covered by a previous regime of rules. This means that the Financial Ombudsman Service will be able to consider these complaints. If you took PPI after January 2005, your claim is subject to the latest rules.

All of the above and more in this sticky at the top of the forum.

 

links

 

It's a lot of reading but some useful stuff in there

 

Hope this helps

Homework first

 

Then claim your money back]

 

aa

[YV01]

Hi,

 

I received a reply to my letter from HSBC this morning. Full of the usual, "sorry you have found it necessary to complain blah blah blah". To enable a full investigation to take place they want specific reasons why I think the plan was mis-sold.

 

They also say that Ineed to visit a local branch to cancel the protection plan and restructure my loan - if this is the case why was I told it could be done on the phone? They say that the new loan will be on the same basis with the interest rate being honoured.

 

Any suggestions on what my next move should be?

 

Cheers.

[alanalana]

Hi,

 

I received a reply to my letter from HSBC this morning. Full of the usual, "sorry you have found it necessary to complain blah blah blah". To enable a full investigation to take place they want specific reasons why I think the plan was mis-sold.

 

They also say that Ineed to visit a local branch to cancel the protection plan and restructure my loan - if this is the case why was I told it could be done on the phone? They say that the new loan will be on the same basis with the interest rate being honoured.

 

Any suggestions on what my next move should be?

 

Cheers.

 

Have a look in these links.

 

PPI - Some Notes for Claimants..

 

For claims before 2005 and the FSA ruling from which campaign

How to tell if you’ve been mis-sold PPI

 

Quick check: were you mis-sold? - How to tell if you’ve been mis-sold PPI

 

There is much more in here and you should be able to ascertain why you were mis-sold PPI on your loan.

 

Mis-sold PPI? Want your money back? use these links to help

 

aa

[YV01]

Cheers for all the info Alana

 

I've read through all the links - a lot to take on board but very helpful. Is there a template for a letter to send back to HSBC as they want to be provided with the specific reasons that I think I was mis-sold the plan? I've looked through and can't seem to find one.

 

Thanks.

[YV01]

I have just thought of something else: my employment status has changed during the time of my loan - should this have any effect on the loan?