HSBC PPI Refund Offer - Should I Accept?

acsauk · 27 January 2010 at 6:58PM

Hi guys,

I took out a loan with HSBC in October 2007 for £4500 and was told by the guy that it would help my application if I took out the PPI which came in at £850 (plus interest etc) so the total Front Loaded loan came in at £6500. At the time I was a bit suprised by the amount but as I was leaving my job to go travelling for a year (which I also told the loan man!) so I didn't think too much about it.

I sent the standard PPI refund letter to HSBC 9 weeks ago and today got a letter offering me £695.71 without prejudice. This includes 8% of interest. I was expecting something closer to £1000 but I may have been working the figures out wrong in my head. What seems a bit wrong to me is that they say I've paid 27 premiums which comes to the total they have offered me but surely I'll still be paying off the remainder of the insurance as its front loaded?

Should I accept it or ask for more?

(thanks in advance!)

di3004 · 27 January 2010 at 7:34PM

acsauk wrote: »

Hi guys,

I took out a loan with HSBC in October 2007 for £4500 and was told by the guy that it would help my application if I took out the PPI which came in at £850 (plus interest etc) so the total Front Loaded loan came in at £6500. At the time I was a bit suprised by the amount but as I was leaving my job to go travelling for a year (which I also told the loan man!) so I didn't think too much about it.

I sent the standard PPI refund letter to HSBC 9 weeks ago and today got a letter offering me £695.71 without prejudice. This includes 8% of interest. I was expecting something closer to £1000 but I may have been working the figures out wrong in my head. What seems a bit wrong to me is that they say I've paid 27 premiums which comes to the total they have offered me but surely I'll still be paying off the remainder of the insurance as its front loaded?

Should I accept it or ask for more?

(thanks in advance!)

Hi there

Well done.:beer:

That's the thing with an offer they seem to offer what they want, where if they accepted liability they must refund you the whole amount paid into PPI, interest and 8% interest of what a court would award for being deprived of your money.

It is up to you of course, but if that was not the final decision, you should have the option to write back to tell them your not happy with the amount, and request they offer more, or tell them despite their offer, you strongly stand by your reasons that you were mis sold and request as stated above if they accept liability.
If they do not do this then you always have the financial ombudsman service (FOS) but please be aware this could take some time because of the large volumes the FOS are dealing with.

Wishing you luck either way.:beer:;)

acsauk · 28 January 2010 at 12:22PM

Thanks for the reply Di!

I think I'm going to ask for the full amount - has anyone else done this and had success? I just don't see why I should pay for something which I didn't need and couldn't use, and at the end of the day what is an extra £300 to a bank?

di3004 · 28 January 2010 at 12:24PM

acsauk wrote: »

Thanks for the reply Di!

I think I'm going to ask for the full amount - has anyone else done this and had success? I just don't see why I should pay for something which I didn't need and couldn't use, and at the end of the day what is an extra £300 to a bank?

Your very welcome.;)

Yes you do have a good point here.

Have you also checked on the above success thread as well?

nicholas.t_2 · 9 November 2011 at 8:28PM

I had a business back around 2002, I went to HSBC bank for a loan. I got a £10,000 business loan and a credit card with a £3,000 limit. I was told that to take out this loan and card I would need ppi. my business started to fail and I run up debts to around £18.000, I then tried to claim off the ppi for the loan and the card which were over there limit with some missed payments. I was then told that as I was self employed I could not claim even though I had paid for the ppi as part of the loan and the card.
I talked to the bank and they then arranged a managed loan for me to pay off the £18,000
this was at £280 per month. I was paying this off but had difficulties in doing so as my business had failed. A couple of years ago I fell into arrears with this managed loan and a new agreement was set up so that I only paid off the loan with no interest added this is now £115 per month.
not long after this was done I was told by a company that the bank had done this due to the fact the original terms and conditions were wrong and if I had talked to them before the rearranged managed loan was set up the original loan would have been annulled.
I am now still In debt to the tune of £13,000 plus, as I cant afford to pay more. IF I was able to claim off the ppi which I now consider I was missold I would have had the debt cleared.
I therefore think I should be compensated for all the anguish I have had over the last 8 plus years and the existing loan of £13,000 cleared. also all the payments I have made towards paying off this loan should be returned with the appropriate interest.
Due to all the above I have not been able to obtain any form of credit.
I contacted the bank about this and was sent a claim pack
they hold all the account numbers and all the payment details as they have told me this.
due to the length of time involved I do not have any original documents for all the above but have been told I can obtain the information from the bank at a cost ....
I today had an offer off HSBC
for £471.91

are they for real
any advice please

dcfc36 · 11 November 2011 at 1:20AM

My HSBC Loan is = £15,000 at 8.9% back in 2004 ( for 8 years )

Payments are = £381 a month ( including ppi )

I have made 83 payments of £381 and still have 13 left.

A £15,000 loan over 8 years with 8.9% interest is £21,021

but i have already paid £31,623.

if i never put my claim for mis-sold ppi i would of paid back a grand-total
of £36,576 JUST for a £15,000 loan over 8 years.

I have already been to HSBC bank and the lady even said i will get my mis-sold money back. and i`m guessing that i have been paying ppi included into my loan with 8.9% interest since day one.

My question is: if i have paid them £31,623 already and i should of paid them WITHOUT ppi included £18,177.......should i get the difference back?????

( i am at my 10th week waiting for a final responce!! )

when the guy at HSBC finalized my loan he said for a £15,000 loan over 8 years with ppi included comes to £26,130.

THAT JUST DOES NOT ADD UP AT ALL!!!

if anyone can help me out with any of this or if someone is in a simulair situation i would be so grateful for your help and advice!

Thankyou!

DCFC36

Timc76 · 8 July 2014 at 3:43PM

Hi, I've just had an offer for ppi from Hsbc , they have offered me £8244.01, it is a great offer but the interest calculation do not match up to dates I have for the loans I took out? I don't know what to do or how to check if the offer is right?

-taff · 8 July 2014 at 4:14PM

the 8% interest? o the interest added on the loan to start with?

Timc76 · 8 July 2014 at 5:20PM

The 8% interest per year, working it out it doesn't match any of my loan dates?

-taff · 8 July 2014 at 11:46PM

It's 8% simple interest, not compound,. and it's payable per year from the date you borrowed the money.

Timc76 · 10 July 2014 at 9:11AM

Thanks , that's what I was thinking, but the interest that they have offered doesn't match up to the time scales that I have had the loans?
The letter state full premiums along with an element of net interest?
On the break down it also state ppi premium redress ?

HSBC PPI Refund Offer - Should I Accept?

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