Hsbc Ppi

[sentinal8473]

Good evening to everyone here,

this is my fist post!

After watching Trevor McDonald some time back now re PPI on loans, this has been bugging me, so i have started to look in to it.

Basically I have a loan for £23,200 with interest that is £30,024 which is ok, i can cope with that, now on top of that is the PPI which is £6,999 and with interest is £9,046 which totally shocked me as I had not really looked at it properly before.

Is it me or is this totally stupidly high for PPI ???

at the time I knew what ppi was for etc, but i was not at any point told that i did not have to take there’s and could get one on my own, and from what i can remember they made it sound so compulsory that I just said yes.

the loan is just under 2 years old with 6 years to go, the PPI is a Single Premium Policy type, i have read in lots of places that you may not get much back from cancelling this type of policy, is this correct. ???

 

I have income protection any way so i do not need PPI.

Has anyone else cancelled PPI with hsbc on a fixed sum loan ???

I would love some advice really on how to start proceedings for cancelling the PPI ??

Cheers in advance[/font]

[hellhasnofury]

Good evening to everyone here,

 

this is my fist post!

 

After watching Trevor McDonald some time back now re PPI on loans, this has been bugging me, so i have started to look in to it.

 

Basically I have a loan for £23,200 with interest that is £30,024 which is ok, i can cope with that, now on top of that is the PPI which is £6,999 and with interest is £9,046 which totally shocked me as I had not really looked at it properly before.

 

Is it me or is this totally stupidly high for PPI ???

 

at the time I knew what ppi was for etc, but i was not at any point told that i did not have to take there’s and could get one on my own, and from what i can remember they made it sound so compulsory that I just said yes.

 

the loan is just under 2 years old with 6 years to go, the PPI is a Single Premium Policy type, i have read in lots of places that you may not get much back from cancelling this type of policy, is this correct. ???

 

I have income protection any way so i do not need PPI.

 

Has anyone else cancelled PPI with hsbc on a fixed sum loan ???

 

I would love some advice really on how to start proceedings for cancelling the PPI ??

 

Cheers in advance[/font]

 

Hello and welcome,

 

The ppi fee is extorionate but that is what they charge plus the interest:eek:

They probably paid out about a third to the insurance company and profited the rest:-x

 

You were under the impression that it was compulsory if you wanted the loan you had to have the ppi. Well join the club, They did not imform you otherwise did they?

 

IMHO the first thing you must do is cancel the ppi you have with them.

 

the second thing you send them a prelim letter asking them to refund whole the ppi and interest.

 

Be warned that they will not be happy and will not want to do it.

 

They will deny, and deny, blame you, you agreed, you signed, blah, blah.

but you must continue as you mean to go on.

 

Good luck to you and if you need help, just ask.

[sentinal8473]

Hello and welcome,

 

The ppi fee is extorionate but that is what they charge plus the interest:eek:

They probably paid out about a third to the insurance company and profited the rest:-x

 

You were under the impression that it was compulsory if you wanted the loan you had to have the ppi. Well join the club, They did not imform you otherwise did they?

 

IMHO the first thing you must do is cancel the ppi you have with them.

 

the second thing you send them a prelim letter asking them to refund whole the ppi and interest.

 

Be warned that they will not be happy and will not want to do it.

 

They will deny, and deny, blame you, you agreed, you signed, blah, blah.

but you must continue as you mean to go on.

 

Good luck to you and if you need help, just ask.

 

Hi, cheers for the reply!

Join the club..yeah that sounds right, spoke to my bro last night and has joind the club also, I pointed him in the direction of this site also...

I am cancelling the PPI today!!! that should be fun!! I am just going to state that i no longer require the ppi as have other protection.

Can i ask what is a PRELIM letter? and are there any templates? also i have seen ref to an LBA letter, also wondering that that is for?

[hellhasnofury]

Hi, cheers for the reply!

 

Join the club..yeah that sounds right, spoke to my bro last night and has joind the club also, I pointed him in the direction of this site also...

 

I am cancelling the PPI today!!! that should be fun!! I am just going to state that i no longer require the ppi as have other protection.

 

Can i ask what is a PRELIM letter? and are there any templates? also i have seen ref to an LBA letter, also wondering that that is for?

 

Hello,

 

Their is a well trodden path for reclaiming back bank charges and it is the same for reclaiming back ppi.

Send a preliminary letter, there are a few kicking about the site. You just amend them to your own details etc. they get 14days to respond and come up with your money. They probably won't:mad:

 

Then you send them a LBA letter before action giving them another 14days or its court time.

[hellhasnofury]

 

Hello this is one I sent to a bank for a loan with ppi on it Hope it will give you some idea:D

 

 

Dear Sir or Madam

Loan Account no: XXXXXXX

I write in response to my recent Subject Access Request dated XXXX I thank you for your information. After reading the information it has now come to my attention, that the loan account no XXXXX, which I took out on the date XXXXX had payment protection insurance applied to it. the loan was for £XXXXX plus XXXXXXcharge for credit/ interest. The payment protection insurance was calculated by yourselves at £XXXX. Total amount of money payable £XXXXXX over XXXX years and I would assume unless otherwise directed by yourselves that XX% interest on the ppi of £XXXX was included into the interest applied to this loan. The insurance policy no of the payment protection insurance is XXXX. I have never received any policy or terms and conditions regarding this policy. I have received this information from the SAR you have recently sent to me

I am extremely disappointed that your company have conveniently failed to locate any copies of Contracts regarding the loan. I feel this statement hard to believe that you cannot locate these documents and by law under the data Protection Act 1998 and the Limitation Act of 1980 you must supply me with this information. There was another loan running prior to the above loan which I have also request information about. I shall be reporting this matter to the Information Commissioners Office.

When I took the loan with your company, I was not given offered a full and detailed explanation of payment protection insurance and was lead to believe by your company/representative that it was part of the conditions of the loan. I have thought that for the last five years and more. It has only become apparent to me after the recent coverage by the media, and following the recent OFT and FSA investigations regarding the mis-selling of ppi by finance companies.. This is when I requested the Subject Access Request. Regarding the loan with the ppi applied, I believe I that I have been gravely mis-led and have been mis-sold this expensive insurance that I did not need or want.. At the time of this application I was enduring financial difficulties and being my main bank account of this you were well aware. I am frankly shocked that you have operated my loan account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

 

 

Your responsibilities

 

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

 

Firstly, I understand that at the time I entered into the loan contract with you your bank was running an incentive scheme to encourage your employees to sell PPI schemes, as were several other High Street banks. This information was posted on a public website in September last year:

 

 

SECRET documents leaked from two major banks show how bosses get their staff to sell big loans and the profitable insurance policies that go with them Commission tables for the RBOS and NatWest reveal a score system in which bank workers amass disproportionally more points for selling larger loans and for those sold with insurance - sparking fears that inappropriate products are being pushed

.

In-branch customer service advisers are able to earn a quarterly bonus of £1,200 if they consistently reach a weekly target of about 2,700 points over three months and if their branch also reaches its three-monthly target. Staff earn 30 points if they sell a customer a personal loan of between £3,000 and £4,999, but they earn 90 points if the loan is sold with payment protection insurance - the controversial cover that is supposed to pay out if a borrower loses their income.

 

I was not aware of this and even if it is untrue, I consider that there was a clear conflict of interest between your fiduciary responsibilities to me and the direct selling by your employees of PPI schemes, given the very large profit margins they generate.

 

When I took the loan/loans with your company, I was not offered a full and detailed explanation of payment protection insurance and was led to believe by your company/representative that it was part of the conditions of the loan. I have thought that for the last five years and more. It has only become apparent to me after the recent coverage by the media, and following the recent OFT and FSA investigations regarding the mis-selling of ppi by finance companies.. This is when I requested the Subject Access Request of the 14th January 2007.

Regarding the loans with the ppi applied, I believe I that I have been gravely mis-led by your company at a time when I was facing financial difficulties and have been mis-sold this expensive insurances that I did not need or want.. At the time of this application I was in full-time employment with no risk of redundancy ,a fully paid salary for 6months of sickness, had a generous life insurance and critical illness insurance policies.

 

No attempt was made to ascertain if the product provided was fit for purpose, suitable for my needs or if indeed it at all. No inquiry was made as whether I had pre-existing insurance for accident, illness or unemployment. I was not given a copy of the insurance policy nor were any rights to cancel explained. I believe you manifestly failed in your fiduciary responsibilities, your duty of care.

 

Secondly, I understand under the Consumer Credit Acts and following a House of Lords judgment, that you are not allowed to make a loan conditional on taking PPI unless you include the costs of PPI as part of the charge for credit and not the credit itself.

 

You did not do this. You added it to the total for credit and then charged me further interest on the premium on top of the interest for the loan. This is unacceptable.

 

Finally I believe insurance contracts are contracts uberrimae fidei (contracts of the utmost good faith) which imposes on you a “duty of disclosure of all material facts because one party is in a strong position to know the truth.” Inter alia, I believe that you should have disclosed to me that the type of policy you sold me, a single payment premium, did not give a pro-rata refund in event of early settlement. I believe you should have made it clear to me that the policy generated large profits for you. You failed to do this. I believe that you have also therefore failed in your duty of disclosure. Your failure to disclose is misrepresentation at common law.

 

What I require

 

Your concealment of the act of mis-selling has prevented me from asserting my right until now. I believe that there are strong grounds for action against you under common law, statute and consumer regulations.

 

The original premium was £XXXX added to the loan amount on the dateXXXXXI presume that interest at XXX% was added to this amount.(unless you can inform me otherwise). Interest £XXXXX Total amount £XXXXXX. The Statutory 8% interest (S69 of the County Court Act) allowed by the Courts will amount to £XXXXX Making the total amount payable at the Court Stage £XXXXXX.

 

My targets to resolve this matter

I am writing to ask you to refund the premium paid together with interest equal to your APR at the time under the accepted principle of mutuality and reciprocity.

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets. I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive this payment.

 

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that this time frame is sufficient for a large company such as yours with its dedicated staff and departments. After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.

 

Yours faithfully,

 

 

 

 

 

 

[sentinal8473]

Hi thank you for the info, have taken a copy of that letter you pasted also, good template.

 

Well i just got back from the bank and they refused point blank to remove the ppi, the only option i had was to re do the loan without PPI which is ok but doing the math tells me that by doing this will reduce payment i will of wasted all previouse payments up untill now.

 

so next step tis to write to them...i take it that was to be expected.

[hellhasnofury]

Hi thank you for the info, have taken a copy of that letter you pasted also, good template.

 

Well i just got back from the bank and they refused point blank to remove the ppi, the only option i had was to re do the loan without PPI which is ok but doing the math tells me that by doing this will reduce payment i will of wasted all previouse payments up untill now.

 

so next step tis to write to them...i take it that was to be expected.

 

Hello,

 

Sorry It is no surprise:eek:

you would be interferring with their huge profits.

 

So you know the next step:D

 

Unfortunately they are not into what is fair and just, so you have to show them that you are serious and will not run away cringing at the first hurdle.

 

If you need help just ask