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HSBC Personal Loan PPI x2


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Hello to regular contributors to this section of the wonderful CAG.

 

I took out a personal loan on 30th November 2004 to clear our joint bank account overdraft.

My partner had recently been hospitalised following the birth of our second child, I had to look after our first child so was unable to work and we were pretty desperate.

 

I distinctly remember the girl in my local branch of HSBC telling me that if I did not take out the PPI then the loan would be refused. In fact, I think that she even ran it through the system without PPI to test it and it was rejected then ran it with the PPI and it was accepted. At no time did she advise me that I could take out PPI elsewhere.

 

On 27th July 2006 my partner took out a personal loan in HER name and MY loan was paid off. Some of the PPI was refunded. See figures below.

I don't believe that I need to SAR or CCA them as I have all of the original documents and records of transactions.

 

Could someone please advise what to do next and how much I should be claiming for?

 

Also. Because our finances are joint (even though the loans were in seperate names) can we apply for a refund jointly or do we need to apply seperately?

 

Thanks ;)

 

 

Principal Loan in my name

Personal Loan

 

Amount of Loan £3250.00

Total Charge for Credit £1284.24

APR 14.9%

Total amount payable

under this agreement £4534.24

 

Repayment

 

Initial repayment £75.02

Date of 1st repayment 1st January 2005

59 further monthly payments of £75.58

on the same day in each

month thereafter

 

Credit Protection Insurance

 

Amount of Premium £816.62

(including Insurance Premium Tax at the appropriate rate)

Amount of Loan £810.00

Total Charge for Credit £320.07

Total Amount payable

under this agreement £1130.07

 

Repayment

 

Initial repayment £19.10

Date of 1st repayment 1st January 2005

59 further monthly payments of £18.83

on the same day in each

month thereafter

 

27th July 2006 my loan

paid off by new loan sum of £3221.20

Loan Protection Refund of £348.07

Principal Loan in my partner's name

Personal Loan

 

Amount of Loan £8500.00

Total Charge for Credit £2880.14

APR 11.9%

Total amount payable

under this agreement £11380.14

Repayment

 

Initial repayment £189.61

Date of 1st repayment 1st November 2006

59 further monthly payments of £189.67

on the same day in each

month thereafter

 

Personal Loan Protection Plan Loan

 

Amount of Loan £2010.00

(including Insurance Premium Tax at the appropriate rate)

Total Charge for Credit £681.10

Total Amount payable

under this agreement £2691.10

 

Repayment

 

Initial repayment £44.95

Date of 1st repayment 1st November 2006

59 further monthly payments of £44.85

on the same day in each

month thereafter

 

To date we have never missed a payment on the 2nd loan although we have a dispute with them about August's payment after we moved bank accounts.

Although we informed them of the change the DD bounced and we paid it by card over the telephone on 31st August when it was due to come out by DD on the 1st August. Mainly because we were on holiday for two weeks. They claim that we are in breach of our Terms & Conditions as we didn't pay it within two weeks of the due date. We believe that we have until the end of the month to pay so therefore aren't late with it. This has implications for the end of the loan because if we are up to date and make the final payment in October 2011 we are refunded 25% of the interest to the tune of £890.31.

 

Thanks for looking,

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Smelly,

 

According to my calculations and using the FOS guidelines, your claim for the first loan should be:

 

Cost of PPI: £810

Compound interest: £320.07

8% on monthly repayments: £305.27

8% on ppi since end of loan: £75.30

 

Total claim: £1,510.64

 

For the second loan:

Cost of PPI: £2,010

Compound interest £681.10

8% 0n monthly repayments: £322.03

 

Total claim = £3,013.13

 

I suggest you make the claim in the name of the person who took out the loan on each occasion. You can at a later date nominate someone else to deal with the claim for you eg: partner.

 

In order to get the ball rolling, I would write a letter to HSBC customer care stating the reasons you believe you were mis-sold and that you would like a full refund of the PPI premiums, plus compound interest and 8% simple interest on top, as per the FOS guidelines.

 

HSBC must provide a full and final response within 8 weeks. If they do not, or if they refuse the refund you can then refer the case to the Finalcial Ombudsman Service, which costs you nothing, but will charge HSBC £500 for investigating your claim.

 

Remember to send all correspondence by special or recorded delivery and keep your receipts as proof of delivery.

 

Good luck

 

DJ

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