HSBC Mortgage PPI - advice appreciated!

[naithr]

Hello all

 

I am looking into making a claim against HSBC for mis-selling insurance when I took out my mortgage but am unsure if I have a case or how to start.

 

I took out a 100% mortgage with HSBC in July 2006. When I went in to sign the paperwork I was told that their insurance plan which would offer payment if I was sick or injured and life assurance were a compulsory part of the mortgage and I needed to sign up for this too.

 

In November 2010 whilst talking to a colleague in work I was told that this was a waste of money as my employer provides a death in service grant which would cover the mortgage and sickness cover for a year too! I promptly cancelled the cover deeming it unnecessary. I interestingly did not hear from the bank telling me the compulsory cover was no longer in place!

 

My complaints are

 

1) the advisor made it clear it was compulsory when I now know that this is not the case. It was made clear at the time that the mortgage would not happen without the cover.

2) the advisor did not mention I could shop elsewhere for this cover.

3) the advisor did not check to see if the cover was necessary due to my employment.

 

I do not have any of the original paper work (stupid I know) apart from the bank statements showing payment to HSBC LIFE UK for payments of approx £45 a month

 

Could you offer your thoughts please of if I can / should claim and if so perhaps how I would go about this?

 

If you have had a similar (and successful!) experience with this then any letters you have used would be great if you do not mind sharing!

 

Thank you in advance.

 

Naith

[ims21]

Yes you can claim.

 

It's good that you have a record of the payments. Enter them into the spreadsheet attached.

 

Go to the fos website, download a consumer questionnaire and complete it.

 

Send the completed questionnaire and a copy of the completed spreadsheet to the lender together with a brief covering letter.

 

They will have 8 weeks to investigate and give you a final decision on your complaint.

 

StatIntSheet v101.xls

[naithr]

Thank you so much for the quick reply - this is perfect.

 

I am worried that I do not have an account number - as I still hold the mortgage and account with them is it really necessary?

[ims21]

Is there an account number mentioned on your bank statements each month when the payment goes out?

 

If not just a quick call to them should get you the account number.

[naithr]

Have just checked and there is no number attached to it. I have completed the form and in the account number section have asked them to source from their records.

 

Will post tomorrow with a covering letter

[naithr]

Forgot to add my thanks for your quick response!

 

This is my statement of why I am unhappy

 

 

Whilst talking to a colleague in November 2010 he told me I was wasting my money as we have equivalent cover through our employer. I then cancelled the policy.

 

It is now clear to me that this policy, both the life assurance and income protection, was grossly missold for the following reasons.

 

1) The information that the policies were compulsory in order to receive the mortgage was a lie.

2) Clearly given the above, there was no discussion that if I did need cover I could use other providers

3) The advisor did not check if I had alternative cover. Indeed, I believe that he suspected that my employer provided these benefits and as such deliberately avoided asking.

[ims21]

Ooops...careful with your wording....

 

In point 1 remove the word "lie".

 

In point 3 remove the bit about what you suspect the advisor did i.e. deliberately avoided asking.

 

Stick to facts.

 

1 You were told the insurance was compulsory.

2 You were not informed that, had you needed it, cover was available from other providers at possible less cost.

3 Your employer provided enough cover so you did not need or want the cover.

4 The advisor did not carry out a full needs assessment.

 

Phone them in the morning to see of you can get the account number....it may speed things up if you can provide it

[naithr]

Point(s) taken - thank you again!

[joncow75]

Hi naithr, apologies for getting back to you late. Follows IMS advice and you'll be ok. I put my complaint into HSBC, but showed I alsready had an HSBC life policy for Income protection and that I was covered through work. HSBC paid out without any issues. Good luck

[naithr]

Thank you again IMS and JC. Letter to be posted today. Sorry to hear about your BC saga - madness!

[naithr]

A month later and I get a reply.

 

I am told that this is not a complaint regarding PPI but regarding a Mortgage Protection Plan and an Income Protection Plan,

informing me that they aim to respond in full within 8 weeks and asking if I would like to not proceed with my complaint!

 

I am today going to reply with the same letter and reasons before with the product complained about the Mortgage Protection Plan and Income Protection Plan.

 

Does this sound about right?

[liam12345]

Hi naithr

 

I too have a claim with my HSBC mortgage protection plan inc critical illness plan.

 

After a month I got a reply stating that they were investigating my claim and woul reply again in another 4 weeks (total 8 weeks from my claim being raised).

 

They did not not mention a difference between PPI and the Mortgage Protection plan and did not give me a kind offer of retracting my claim!

 

I'm sure the helpful guys and girls on here will help u on this one

as this might just be a fob off to make you question whether your claim is valid!?

 

I'm sure ims21 will be able to advise if the mortgage protection plan is different to PPI

and whether your claim is stil a valid one!

 

Good luck to you

- I will follow your thread with interest and keep an eye on mine as it looks like we are in the same boat!

[dx100uk]

yes it is the same

 

they are just putting up a smoke screen

go get 'em!!

 

dx

[naithr]

Thank you dx

 

Liam - I do feel your pain that they have not been generous enough to ask you if you want to retract your complaint

 

I wonder if this is a new ploy - I sent my initial letter on the 4th July - and received a reply with the same 4 week/8week response you did. when did you initially write to them?

 

Naith

[liam12345]

Thank you dx

 

Liam - I do feel your pain that they have not been generous enough to ask you if you want to retract your complaint

 

I wonder if this is a new ploy - I sent my initial letter on the 4th July - and received a reply with the same 4 week/8week response you did. when did you initially write to them?

 

Naith

 

naithrI wrote to them on 18th July and received a letter within a week confirming my claim and that they would look into it. After 4 weeks they sent the last letter so they now have until 14th Sept 2012 to conclude their investigation. So far no complaints about how HSBC are conducting themselves but will have another 4 weeks to wait on the final ruling. Has this been the same for you?

[naithr]

Hi Liam. Sorry for the slow reply - I was away.

 

My initial letter was sent on the 7th of July so my decision is due very soon. Again the original reply to say they had received my letter was very quick, and then a few weeks later I revived a second reply correcting the name of the complaint and asking if I wanted to change my mind

 

Time marches on...

[liam12345]

Hi Liam. Sorry for the slow reply - I was away.

 

My initial letter was sent on the 7th of July so my decision is due very soon. Again the original reply to say they had received my letter was very quick, and then a few weeks later I revived a second reply correcting the name of the complaint and asking if I wanted to change my mind

 

Time marches on...

 

naithrThe decision should be very soon - I await with interest to the outcome! Good luck!

[liam12345]

Hi naithr - any news yet - they must be past their deadline now?

[naithr]

Hi Liam - sorry for the slow reply - busy week!

 

Letter arrived Tuesday - complaint rejected

 

reasons given were

 

1 You were told the insurance was compulsory. - They can find no evidence to support this

2 You were not informed that, had you needed it, cover was available from other providers at possible less cost.I was apparently given a letter stating that the advisor would only be recommending HSBC products

3 Your employer provided enough cover so you did not need or want the cover.in regards to life and critical illness, they state that they do not recommend employer in service death grant to pay off mortgage and that it does not cover the critical illness element. In terms of the payment protection , they do not really mention it in the letter.

4 The advisor did not carry out a full needs assessment.I filled in a questionnaire which was my needs assessment according to their records.

 

Questionnaire or not, I was still sold policies which I did not want, thus the reason I cancelled them in 2010 and did not replace them with similar! Off to the FSO...

 

Naith

[liam12345]

Hi Liam - sorry for the slow reply - busy week!

 

Letter arrived Tuesday - complaint rejected

 

reasons given were

 

1 You were told the insurance was compulsory. - They can find no evidence to support this

2 You were not informed that, had you needed it, cover was available from other providers at possible less cost.I was apparently given a letter stating that the advisor would only be recommending HSBC products

3 Your employer provided enough cover so you did not need or want the cover.in regards to life and critical illness, they state that they do not recommend employer in service death grant to pay off mortgage and that it does not cover the critical illness element. In terms of the payment protection , they do not really mention it in the letter.

4 The advisor did not carry out a full needs assessment.I filled in a questionnaire which was my needs assessment according to their records.

 

Questionnaire or not, I was still sold policies which I did not want, thus the reason I cancelled them in 2010 and did not replace them with similar! Off to the FSO...

 

Naith

Hi naithr - sorry to hear of the complaint being rejected! Looks like they are gonna play hard ball with you - keep up the fight! I'm sort of expecting the same response in regards to the critical illness plan but I still feel that the repayment protection policy they sold you that would have provided the same cover as your employer would needs looking at again (probably why they didn't mention it) I'm sure the more experienced people on here can advise you better tho! Having read my policies HSBC do state that their advisors will only give advise on their own products and policies. As for the questionnaire that u apparantly filled out - if it was the same as mine it was a 1 on 1 chat (called a Financial Planning Review) at the same tiime as the mortgage was appplied for and THEY gave recommendations as to what cover you needed with the mortgage based on your financial, employment and lifestyle requirements - basically you need to sign up to our recommendations if you want the mortgage to get approved. Dont give up hope - I still have a copy of this Financial Planning Review Report - so maybe you can ask HSBC for that?

[naithr]

Thanks Liam. Fingers crossed for you now!

 

Anybody any idea as to how quick the FSO turn these cases around on average?

 

Naith

[naithr]

Update for anyone following this...

 

FOS have sent letter to tell me they are looking into it and will have decision by xmas...

 

Any news on your case Liam?

 

Naith

[harris1997]

Hi naithr

 

How did you get on with the fos?

I am considering pursuing HSBC for the same PPI and for the same reasons you have cited, because they did tell me i would have to take out their products when i got my mortgage with them.

Any info would be a great help, but I am going to send the forms to them anyway.

Any info would be greatly appreciated.

Thanks

[dx100uk]

op has not been on cag since their last post

[harris1997]

OK, thanks for letting me know