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

[slick132]

Sounds like a letter may be on the way to explain the Goodwill Gesture pay't made to your a/c.

 

Let us know what they say.

 

[candyapple1]

Correct Slick, a pathetic letter, apologising for not getting back to me sooner, blah blah blah, they did not have general access to the archived records at the time, blah, but can not recalculate settlement offer as confident it was correct, but to cover SAR payment, and other costs, please accept goodwill gesture of 50 pounds.....yeah, I guess that makes up for the 10,00 + they short changed us! Hey ho, off to the FOS we go, may come to nothing, but worth a try. At least I will be able to say we did everything we could!

[candyapple1]

Phew, have finished preparing our complaint to go off to the FOS, not even sure if they will look at it, but never know. This makes me so mad, you have people on Sky News saying don't go to cc, banks will be fair.....yeah, right!!!!!!! Don't misunderstand me, not saying cc are any better, but really, consumers in this situation are at such a disadvantage

[candyapple1]

This case has only been with FOS for 7 months, so still a while to go, anyone had any luck getting accepted offer increased by FOS?

[candyapple1]

Quick update and question:

 

FOS could not look at case as we had signed offer, however interestingly, HSBC answered an email I sent to CEO office, and have recalculated loan back to start date, based on estimates for early period of 4 years where we have no statements. Just waiting for offer letter to come through. So, if you settled a claim when the banks were still getting away with only looking at the info they had, may be worth going back to them!

 

On a tangent, in 2003 we took out a loan from HSBC to pay off cc debt. The loan did not have PPI, however with the reconstructed cc after discounting PPI, the card balance would have been practically 0, and as such we would not have needed to take out the loan. Has anyone done anything about this type of situation, at the very least tried to claim the interest back......as my argument would be, they have said we shouldn't have been paying the PPI, and if we had not been, we would not have needed the loan, so we want our money and paid interest back.....does anyone think it is worth a shot-after all, the have to put the customer back in the position they would be in had they not piad PPI, and this is directly related. Any thoughts?

[slick132]

Hi CA,

 

I think your suggestion has some merit although I'm not sure if you have decent grounds to force the issue if the bank disagrees with you.

 

Best option would be to write to them, once the PPI issue is resolved and you know the final figures, complaining that the loan would not have been necessary if PPI had not been charged. You therefore want the loan cancelled and any interest that you paid refunded to you. However, the initial loan amount would need to be repaid to the bank.

 

[candyapple1]

So, received the "new offer", taking into account the earlier years they did not pay us for previously. Have a look and see if these figures make as little sense to you guys as to me?

 

Original Offer: July 1997-February 2012

 

Premiums Paid: 6120.69

CI: 9779.53

SI: 1543.39

TOTAL: 17443.61

 

Revised offer: May 1993-February 2012

Premiums Paid: 6744.66

CI: 9843.27

SI: 5096.75

 

So, for the 48 months between June 1993 and June 1997, they are saying we paid 623.97 in premiums, the aditional CI is only 63.74, however the SI jumped up by 3553.36

 

In the offer, they say for the statements between May 93 and 2005 where there are missing statements, they calculated the offer based on the average card balance. However, I work out the average card balance as 4879. Where as the average for the additional premiums comes out as 12.99 p/month-yet, if average balance is 4879, the average PPI should be about 35 pounds per month, surely?

[slick132]

Surely you need their schedule or spreadsheet to enable you top check the calculations for yourself. Without this, you have no way of checking their figures.

 

Based on the age of the additional PPI charges (May 93 to July 97), I would have expected there to be a significant increase in the compound interest in the revised calcs, compared to the calcs that only include PPI from July 97.

 

Write asking for a copy of their calculations because, without them, you have no means of checking their accuracy.

 

[candyapple1]

Is there anywhere to quote, like from the FSA, where it says we are entitled to see their calculations?

[slick132]

Personally, I'm not aware but will seek further option on this.

 

[slick132]

I'm grateful to Ims21 who has said:-

 

I am not aware of a statute but the fos website has many case studies where fos have ruled that the lender should compensate and provide their calculations to the claimant.

 

As we know, the lender will always try and give as little detail as they can but it is totally unreasonable to ask the claimant to accept an offer when they have not had a chance to verify whether that offer is correct.

 

So, while we're not aware of Guidance or Regulation about this, the fos clearly (and reasonably) expect banks to provide detailed calculations to back up an offer to refund.

 

[candyapple1]

I have asked them to provide the breakdown, have been told they will respond by the end o next week. Thanks again ims and slick.

[candyapple1]

Got a letter back, lots of "impressive" graphs, etc, about seven pages long. Read throught it all (am sure I was not meant to understand it!). My reply was only a few lines:

 

1. Confirm that with relation to the 1993-1997 payment, you only applied the CI to the end of 1997, not up to current date?

2. Please inform the author of the letter that, contrary to his stating twice within the letter that our cc account was closed early 2012, it WAS NOT. However, if that is the case, could we please have a refund of all the payments we have made on the cc since then!

 

Not heard anything back yet, apparently a letter is on its way to us soon, not sure what to expect. Seriously, the man hours they must be wasting on these to save themselves some money is staggering!

[slick132]

Noted and keep us updated.