Reclaiming PPI from HFB Bank

[designhotty]

I had taken out an unsecure personal loan in September 2005 for £10,000 eeek!! over 5 years and I realised I was sold PPI, Critical Illness Cover, Accidental Cover, and Joint life Cover (PPI). They must have seen me coming as I didn't even know I had it and when checking it says I am being charged 25.9% interest per annum.

 

Anyway after STALKING poor Scooby_Doo2 for the past 8 months for advise, I took the bull by the horns and contacted them complaining of being missold everything to the kitchen sink. To my amazement I received a reply after 5 days offering me a payment of goodwill of £1592.93!!!

 

The thing is I don't have a scooby if this is under my entitlment. My original loan was taken over 60 months starting on 11th Aug 2005 and my PPI Single Premium (I think was £938.16)

 

I will try and attach the documents relating to my account, but although I have a BSc Honours Degree in Interior Design I'm beginning to think I'm a complete TWITT!!

 

Any advise of how much I should receive or if this is a reasonable offer, it also states that regrettably they can not cancel the Personal Loan Protection Plan, however they are willing to restructure my loan but have no record of any PPI policy in place or purchased by me, therefore they are unable to agree that the PPI was mis-sold.

 

This is also confusing me as why would they offer me that sort of money after 5 days when they are not accepting liabilty.

 

 

As I'm sure you will all know by now, I am totally out of my debth with this one and really need help

 

Designhotty

Edited October 26, 2009 by designhotty

[dx100uk]

well on all counts [as typical with HFC] they are talking rubbish.

and they should know better because they have been fined £7M for missold policies from that era.

 

they CANNOT make you take out a new loan & they CAN cancel the PPI forthwith.

 

as for the refund, you need to use the calculator that is in the PPI forum stickies.

 

lastly, as for not finding the policy - yep another con!

if they are saying it has been distroyed, ask for a cert of destuction...bet it appears.

 

dx

[hilaryfrances]

After 2 years of claiming I won my case and thye have agreed to pay me back around 20 years worth of PPI great, cept that was two months ago and I still dont know how much I am going to get or when. So dont hold your breath may take some time till you see any money from these loan sharks

[dx100uk]

they'll keep you waiting unless you demand payment.

after 6mts their sol will claim time out

go get 'em

 

dx

[designhotty]

Thank You So Much . . . Your help is very much appreciated. I didn't expect to receive a reply with an offer after just 5 days and I must say so near to xmas it's very tempting, Just wish I could work out if it is a reasonable offer

[dx100uk]

your scan is not too clear.

i wonder if you could rescan it at a greater resolution

and put it up

 

then we can try some calcs for you

 

dx

[Scooby_Doo2]

Don't worry - the stalking wasn't that bad - I didn't need a restraining order anyway

 

I can't see any attachments though which is what we really need to work out how much they charged you for the PPI and associated insurance (which they used to call "specialty insurance").

 

It's important to note that whilst you were sold PPI, you were also sold additional insurance which would be subject to the same regulations as the PPI. HFC were fined just over £1m for failing to adhere to those regulations. Furthermore, the premiums for the additional insurances could be monthly or single premium. If they are single premium, they would be added to the loan (thus increasing your debt) and attract interest over the full term of the loan (further increasing your debt).

 

Nobody here will or should advise you on whether to keep those insurances or not. Even if someone is qualified to give advice in their day job, they shouldn't do it here (main reason is they don't know enough about your personal circumstances to make a recommendation). So that's up to you to decide, or seek independent advice from a qualified advisor.

 

However, with copies of the legal agreements, we can work out how much the premiums were and how much you were charged in interest. If you took your case to the Financial Ombudsman Service and won (which seems likely from our previous discussions), then you would also be awarded 8% simple interest from the date the policy started and maybe an amount for distress/inconvenience (usually £100-£200).

 

I am fairly certain that for a £10k loan, your PPI premium would be a lot more than £938. This might be the joint life part of it (on the legal agreement the PPI was split into the Life premium and the ASU premium as the life portion went to Hamilton Life Assurance Company Ltd and the ASU went to Hamilton Insurance Company Ltd).

 

If your Critical Illness and Accident Cover policies were single premiums, you would also have been given separate legal agreements for these.

 

As dx100uk said, HFC are talking rubbish. In fact, if they have lost that information, then they have some very serious failings in their systems and controls. It sounds to me like they are hoping you'll accept the first offer they make. If they don't believe they sold you PPI, where the hell did they get £1592.93 from and why would they offer it in the first place?

 

Forget the fact that it is near to Christmas - don't let them fob you off.

 

The 6 months that dx100uk refers to is the time limit you have to take your complaint to the Financial Ombudsman Service once HFC have issued a final response letter (their last word on the matter). I would doubt HFC's first offer was a final response as they operate a 2 stage complaints process, but even if you didn't respond within 6 months, this would not prejudice and legal action you could take.

 

Sorry for the wall of text - get your documents uploaded (black out any personally identifiable information) and we can let you know where you stand.

 

Scooby

[designhotty]

Hi Scooby, I had previously attached documentation but me being "blonde" had left some of my details Eeeek, so I will attempt this again. Thank You to everyone for their continuous imput

reclaim hfc ppi.pdf

original agreement.pdf

hfc front letter.pdf

page 2.pdf

offer.pdf

Edited October 27, 2009 by designhotty

[designhotty]

Hi, Just thought I'd let you all know I have finally Eeeek!! managed to attach all documentation relating to this query. Big "Thanks" to everyone who has sent a post

[dx100uk]

well done

 

dx

[designhotty]

Hi Ya, If you get a chance could you possibly have a look at my original agreement to see if they have made me a valid offer? Thank You so much

[designhotty]

Took the bull by the horns and rejected HFC 's offer? Please let me know what you think, am I on the right tracks

REJECT OFFER HFC PPI.pdf

[dx100uk]

Hi Ya, If you get a chance could you possibly have a look at my original agreement to see if they have made me a valid offer? Thank You so much

 

sorry been busy

 

you are right to reject it.

 

now when was this loan taken out?

that will determine alot about the figure

but no £1500 is pittance.

 

also

you paid off an old loan with this one too ...so i BET that had PPI ...

so they have charged you ppi on the old loan + int and then carried it over to this loan...adding more PPI and more int on the outstanding amount...again a big no no.

 

i have loan details going back to 1983, they are not going to get away with this.

 

rip off merchants......

 

what date is this loan?

 

dx

 

 

exactly what i'm at them for now.

[Scooby_Doo2]

Sorry for the delay.

 

This is what's happened:

 

You took a loan for £10,000. Of that, £8,140.13 was received by you. £1,324.87 was used to pay off existing credit. That leaves £535.00 unaccounted for. I'll come back to this in a minute.

 

The PPI premium is calculated on the full £10,000 and added to your loan. The premium was £938.13 meaning your total loan was £10,938.13.

 

Interest is then calculated on £10,938.13 over the full term of the loan.

 

One important thing to point out is that missing £535.00. I suspect this is likely to be your Critical Illness Cover policy. This is totally separate to the PPI. Critical Illness Cover normally pays out a lump sum in the event of a serious illness (certain cancers, heart attack, stroke etc). You'll need to check your policy documents to see what you're covered for.

 

Now, in order to sell you this policy, HFC should have followed the same process to sell you PPI and establish that you had a need for the policy and also to make sure it was suitable for your needs.

 

The FSA took over regulation of general insurance on 15th January 2005, so in selling this policy HFC must comply with the regulations and be able to demonstrate that they did so.

 

The documents you have posted are not your legal agreements. It is actually a Key Features document that shows you all the information about the product you are about to purchase. This is designed to give you all the information you need to know before signing on the dotted line on the real agreement.

 

When HFC sold a loan, PPI and a Critical Illness policy (as a single premium), you would get 2 legal agreements - 1 for the loan plus PPI, the other for the Critical Illness premium plus PPI. The net loan on the two agreements together in your case would add up to £10,000.

 

Now, your PPI cost was £938.13. The interest for this over the full term was £657.87 giving a total repayable of £1596.00. This doesn't take account of the PPI premium or interest on the £535.00 for the Critical Illness policy.

 

You may well be wise to either ask HFC to provide you with copies of your legal agreements (making a request under the Consumer Credit Act) or making a full data subject access request to get copies of everything they hold about you. If you have the proper legal agreements, I can tell you exactly what they charged and for what element of the loan/PPI.

 

I don't think HFC have tried to cover anything up here, but I do think they have neglected to look at your other insurances that were sold at the same time and by the same person that sold you the defective PPI policy.

 

That said, I think it's rather arrogant of HFC to say they don't accept your allegations when they were fined over £1m by the FSA for failing to treat customers fairly when selling PPI. I suspect there are legal reasons why they said that to be honest.

 

Hope this helps.

 

ps. Your letters to HFC are excellent by the way!

[zoommjpzoom]

Took the bull by the horns and rejected HFC 's offer? Please let me know what you think, am I on the right tracks

 

Hello, I have just sent of my letter to HFC/Beneficial bank about a personal loan i took out in 2006 and found out the PPI was in the loan.

 

Have you had any response back from them yet?

 

Cheers

[designhotty]

Hello, I have just sent of my letter to HFC/Beneficial bank about a personal loan i took out in 2006 and found out the PPI was in the loan.

 

Have you had any response back from them yet?

 

Cheers

 

 

Hi Zoommjpzoom,

Yes I rejected my first offer of £1500.00 and received my second offer approx 7 days later of £3,381.36

 

Please feel free to look at my documents related to this. To be honest I would not have persued this if it wasn't for Scooby_Doo2. The guy is a legend and I simply went with his guidelines.

 

Please feel free to drop me a line if you need any help.

 

P.S I got the refund paid direct into my bank account

 

Designhotty;)

[zoommjpzoom]

Hi Zoommjpzoom,

Yes I rejected my first offer of £1500.00 and received my second offer approx 7 days later of £3,381.36

 

Please feel free to look at my documents related to this. To be honest I would not have persued this if it wasn't for Scooby_Doo2. The guy is a legend and I simply went with his guidelines.

 

Please feel free to drop me a line if you need any help.

 

P.S I got the refund paid direct into my bank account

 

Designhotty;)

 

Thanks, I have used your first letter and posted this week. So I see what they come back with!.

 

Well done on your claim:)

[zoommjpzoom]

I have posted under the PPI section, but they have come back with a figure of £50 PPI refund on a loan of £1000 taken out feb 2007 and worked on 9 PPI payments inc 8% intrest. They have not taken into account the the loan was extended in oct 2007 to £2k until present day.

 

So need to reject offer and need help on letter.

 

Thanks

[dx100uk]

After 2 years of claiming I won my case and thye have agreed to pay me back around 20 years worth of PPI great, cept that was two months ago and I still dont know how much I am going to get or when. So dont hold your breath may take some time till you see any money from these loan sharks

 

how did this roll out any news?

 

dx

[designhotty]

Hi, Sorry I have just noticed your reply. Have you replied to their offer yet? If you want me to write you a letter and attach to the thread let me know

 

Designhotty