HSBC-Credit Card PPI, Still Paying! **** SUCCESS ****

[ims21]

Hi

 

An award for credit card PPI redress under fos rules is to refund the premiums paid plus any contractual interest charged on those premiums. In addition you will get 8% statutory interest on a credit balance which arises due to the removal of those amounts from the account. Basically it means that the account is reconstructed as though PPI was never applied to the account.

 

That is not the same as taking a premium and applying compound interest to it from the date it was charged right up to date.

 

With regard to your request from the bank, they may but this will probably be revealed by the SAR anyway

 

ims

[candyapple1]

Sorry, i may be being blond, but I do not understand the difference between the way I have done it on the spreadsheet provided by your good slef, and what the bank is offering???? We are seriously considering contacting a lawyer, surely they would be interested with the amount on the table? I found one which says that if the claim is over 5000 they get their fees from the bank, so the customer receives all the money awarded.

[ims21]

Hi

 

If you have used a spreadsheet called "CISheet.xls" then that is a pure compound interest calculator and calculates compound interest on an amount and at a specified rate between two dates, i.e. the date of the charge and the end date of the claim. It can be used to calculate interest in restitution for use on things like charges reclaims and/or PPI claims through court where restitution s sought.

 

Awards under FSA/fos rules are calculated differently. You do of course get the premium back but you get contractual interest back which has actually been charged on that premium. In addition you will get 8% interest on any credit balance which results from the removal of the PPI and contractual interest thereon from the account.

 

So, by way of simple example, suppose you had a card for a year. For the first six months you used the credit and were charged PPI. you would get back the premiums and any interest the card company charged on those premiums. Assume at the end of month six you paid off the account and the balance was zero. There is no further contractual interest being applied to the account and so for those last six months there is no interest accruing to the PPI so no contractual interest to refund on them.

 

Now, if those premiums for the first six months were removed from the account, the amount you paid to clear the card at months six would put the account in credit so you would receive 8% interest on that credit balance (not compounded).

 

Have you read the links I gave you in post #24.?

 

Also you can have a look at the case study PDFs on the fos website.

 

ims

[candyapple1]

OK, thanks IMS, I sort of understand now, not too sure what to do. Just so I know, if needs be once the SAR is received, what is it you ask for if info is not there, proof that they have destroyed something?

[ims21]

Hi

 

Responding to PM.

 

We know that banks do keep records beyond six years in many cases and if they have the records they MUST under a SAR release them. There are some threads on CAG where members have forced compliance through the courts.

 

Very recently Barclaycard claimed to a member that they didn't have statements beyond six years and put that in writing. The member pressed them and got statements going back to 2001.

 

I myself put in a SAR to HFC last year (Part of HSBC now) and got my transaction history going back to 1988/89 (that's not a typo).

 

If you are missing things when they respond to the SAR you press them harder, file a complaint with the ICO and, if you wish, you can sue for breach of the DPA. You can also ask for the certificates of destruction.

 

If it turns out that they actually do not have the information, you claim an estimate of the PPI which would have been charged for the missing period

 

ims

[candyapple1]

Thanks ISM, guess still a waiting game, will see what they send back with the SAR then.....it should not be this hard to get back our money that was wrongfully taken, should it! I do not think they will go back as far with us as they did with you, I wonder if because it was earlier, they are now getting rid of stuff so they can say they do not have it?

[candyapple1]

This is a good one. We have had a letter from HSBC, and I quote: "Thank you for your letter instructing us to cancel your Cardholder Protection Payment Policy" ........only thing is, we never sent them a letter asking them to cancel it. Should we complain about this to anyone, and if so, who would we go to.?

[ims21]

If you put in a claim for mis-selling they will automatically cancel the policy if they make you an offer

[candyapple1]

I appreciate that, but to send a letter to us, thanking us for our letter asking them to cancel the policy....we never sent that letter, why would they write that to us? I am getting so frustrated and stressed out about all this.

[ims21]

Forget it...its just a generic letter probably automatically printed on cancellation of a policy

 

ims

[candyapple1]

Yeah, I know, but I just feel, if we did something incorrect like that, they would say something.

 

Still nothing back on SAR, and they only have about five or six days to go. Have managed to get them to admit to start date of PPI policy though, I feel like that is a big hurdle out of the way. Have asked for someone to call us back, today, to discuss the several issues we have with them now, including the fact that we have still not received the redress offer(sent same day as above mentioned letter). Business day will soon be over, not holding my breath for that call!

[candyapple1]

If this is a stupid question, I apologise in advance. Having had time yesterday and today to sit down and really look at everything, I have studied the FOS running credit sheet, and completed it for my other card, only going back to 2004 (started in 1994), and was suprised at how much lower it is than the CIS sheet. What I do not understand with regards HSBC is, with the redress offer made, they only go back to 2005, card began in 1993, so how have they inpu the first months entry? If they only put the spending for that month, would that not mean the card balance was incorrect from the start of the sheet???

[ims21]

Redress on an FAS/fos basis will always be lower than pure compound interest.

 

The bank may have information going back further than they tell you. We know that to be the case i some instances...it depends how far someone wants to push it to get them to admit it. Some folk have even gone into a branch and they have been able to call up older data than has been provided for in a SAR.

 

If they really haven't got the data then they may well have used an estimate too.

 

A claimant can always ask for a breakdown and details as to how the award is calculated.

 

ims

[candyapple1]

Thanks ism, I am awaiting the SAR results, deadline three days now, can't see any way they will meet it, and I still haven't even seen the redress offer yet, let alone the breakdown I asked for! I think they hope people will give up if they give them a run around.

[ims21]

Hi

 

Responding to PM

 

You can't check anything yet as we don't have any statements unless the SAR has arrived (which I don't think it has yet)

 

Am I right in saying that you have only been made an offer over the phone. You said earlier that no letter of offer has arrived yet?

 

ims

[candyapple1]

Corect on both points ims. By Saturday will be in default of complying with SAR. Apparently offer was posted 07 Dec, but we have still not received it yet. I have sent in a complaint to the bank on all these points yesterday, still heard nothing. They are really not treating us well, failing on a lot of fronts at the moment. I do have some statements, so estimating for missing, will get to finish in a little while, and will post it, but it will not pan out as I said in PM.

[candyapple1]

Figures attached. Those highlighted in yellow are guestimates, but when you look at final figures, pretty near their offer. The more I look at the sheet, however, the more I realise that if they were to go back further, what a diference that would make. See by end the discrepancy betwwen actual balance and balance when ppi removed? Well, card begain in 1993, with 50-60 pound ppi payments 1999-2002.........there would have been a much greater length of time with a credit balance, and much greater interest earned on that!

 

FosRunningPPI%20v101(1) hsbc2.xls

[ims21]

If they have the data to go back further then it will have an impact

 

ims

[candyapple1]

Nothing new to add, just so frustrated. HSBC are now guilty of non-compliance re the SAR, and they do not seem to care, and we have still not received the offer, even though they posted it on the 7th, and we have been contacting them for over a week to tell them we have not got it, and nothing back.......am making myself feel sick over all this, I just want it sorted fairly!!!!!!!!

[ims21]

The words "bank" and "Fairly" don't go together.

 

You now need to force compliance with the SAR and continue to press them for the offer letter.

 

ims

[candyapple1]

Ni, I know ism, but is should, shouldn't it? I hear some stories, and some peoples claims seem to go through quickly and easily, whereas I feel I and fighting tooth and nail just to get information rightfully ours, let alone get complaints upheld, or a reasonable amount of redress offered....lol, or even actually see a redress offer!!!!!!!!!!!!! Hey ho, I am posting SAR non compliance letters to both banks tomorrow, more paperwork for them to ignore!

[candyapple1]

So, just out of curiousity, I did the calculation on the difference in interest between the interest on the balances we have paid, and what the interest would have been had we not been paying PPI.........2666!!!!!!!!!! These are very rough figures on the spreadsheet, but as I calculated interest on both balances at same rate, should be reflective!

 

FosRunningPPI%2520v101(1)%20hsbc2(1).xls

[ims21]

As with your note on your B'Card one...What is is this about?

[Fur]

I noticed from the spreadsheet posted on here that the their seesm to be somefigures in yellow? Are they just beducated guesses? Also I note the it should start with the first statement and work down. I am currenty doing a claim with M & S Money and have statements goin back in dribs and drabs to 1991 and it is the gaps that worry me but this spreadsheet spreadsheet seems to get wildy diffrent figures due back from the other versions that are straight interest caluclators. I will spend the morning enjoying a spreadsheet session for fun and see what comes up again. HSBC seem to own M & S Money and I have a claim with them as well so I want either of them to confirm the way they calculate it and agree.

[candyapple1]

The figures in yellow are just guestimates, filling in the dots so to speak! Am waiting for response to SAR. This is for running credit, such as cc, rather than a loan. I have had an offer from HSBC, and not including the difference in interest, similar outcome.