Put the kettle on first (Possible HSBC PPI claim with a twist)!!

Mike1979

Hi all,

Firstly, I’m really sorry for the long post. but I’m trying to give as much information as possible.

I’ve been reading about peoples successes with getting their cash back for Personal Protection insurance but haven’t found a situation quite like mine and hoped someone could shed some light on it for me.

I took out a loan in December 2002 at 8.9% APR to buy a new car for my job as it was a company policy to have a car under 6 months old (I had to do a lot of driving back then).

In order to get the loan, HSBC said I’d have to combine my current account’s overdraft with the loan and was told I needed to take credit protection insurance otherwise HSBC wouldn’t give me the money.

In 2005 I realised that my 8.9% rate wasn’t very good, and asked if I could change to their 6.9% rate that they were advertising, again I was told I’d have to combine my current account overdraft with the remainder of the loan to get this rate and continue with the credit protection insurance.

Now I’ve never claimed on this insurance and haven’t missed a payment in the last 5 years 10 months, I’ve checked the insurance sales acknowledgement slip I received in 2002 and it states that the companies providing this insurance are:
For unemployment cover and, where the term of your loan is less than 60 months but for disability cover it’s in excess of 60 months.

So I’m not sure, but I think I might be eligible to claim some of my money back as my loan was initially for 7 years and was mis-sold the “insurance” in the first place.

I’ve put the figures below to give you an idea of the total costs so far.

2002 Loan (December)

Principal Loan 17,300.00
Total charge for credit – 5,754.67
Initial payment 273.66
83 further payments 274.47

Credit Protection Insurance Loan – 4790.76
Total charge for credit – 1593.35
Initial repayment – 76.18
83 further repayments 75.99

Total loan combined = 22090


2005 Loan (July)

Principal Loan 15,540
Total charge for credit – 2,787.10
Initial payment 304.96
59 further payments 305.46

Credit Protection Insurance Loan – 3,300.71
Total charge for credit – 591.85
Initial repayment – 65.11
59 further repayments 64.86

Total loan combined = 18,840.00

If anyone can advise what (if anything) I’d be eligible to claim, it would be greatly appreciated and if it works, there’s a very good chance you’ll make my Christmas card list :T .

Thanks in advance & well done for getting to the end.

Mike

di3004

Mike1979 wrote: »

Hi all,

Firstly, I’m really sorry for the long post. but I’m trying to give as much information as possible.

I’ve been reading about peoples successes with getting their cash back for Personal Protection insurance but haven’t found a situation quite like mine and hoped someone could shed some light on it for me.

I took out a loan in December 2002 at 8.9% APR to buy a new car for my job as it was a company policy to have a car under 6 months old (I had to do a lot of driving back then).

In order to get the loan, HSBC said I’d have to combine my current account’s overdraft with the loan and was told I needed to take credit protection insurance otherwise HSBC wouldn’t give me the money.

In 2005 I realised that my 8.9% rate wasn’t very good, and asked if I could change to their 6.9% rate that they were advertising, again I was told I’d have to combine my current account overdraft with the remainder of the loan to get this rate and continue with the credit protection insurance.

Now I’ve never claimed on this insurance and haven’t missed a payment in the last 5 years 10 months, I’ve checked the insurance sales acknowledgement slip I received in 2002 and it states that the companies providing this insurance are:
For unemployment cover and, where the term of your loan is less than 60 months but for disability cover it’s in excess of 60 months.

So I’m not sure, but I think I might be eligible to claim some of my money back as my loan was initially for 7 years and was mis-sold the “insurance” in the first place.

I’ve put the figures below to give you an idea of the total costs so far.

2002 Loan (December)

Principal Loan 17,300.00
Total charge for credit – 5,754.67
Initial payment 273.66
83 further payments 274.47

Credit Protection Insurance Loan – 4790.76
Total charge for credit – 1593.35
Initial repayment – 76.18
83 further repayments 75.99

Total loan combined = 22090


2005 Loan (July)

Principal Loan 15,540
Total charge for credit – 2,787.10
Initial payment 304.96
59 further payments 305.46

Credit Protection Insurance Loan – 3,300.71
Total charge for credit – 591.85
Initial repayment – 65.11
59 further repayments 64.86

Total loan combined = 18,840.00

If anyone can advise what (if anything) I’d be eligible to claim, it would be greatly appreciated and if it works, there’s a very good chance you’ll make my Christmas card list :T .

Thanks in advance & well done for getting to the end.

Mike

Hi there Mike and a Big welcome.

I think you would stand a good chance hun of reclaiming and if you think you have grounds of these being mis sold to you.

If I were you I would copy and paste this to save you doing all this over again and post in the reclaiming/discussion thread, for this you click on the usual "loans" then you will see the above thread in that forum and just add in there where you will receive further help and guidance there for this type of issue.

Going by what you said though hun, I do feel you have a claim here, now definately the 2005 one, and will have to check the earlier one although I believe the HSBC were covered and regulated as from 2001, if that is the case and you are not successful for getting this back - this can then be moved on to the financial ombudsman service.

Check this link here hun of mis selling reasons and also on that link there is a template reclaiming letter.........here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

I would also try to add in your own words as much as possible but just use the template letter as a guide, also add an explanation to your reasons od why you believe you were mis sold.;)

They have 8 weeks to respond, and if they do not uphold and refund you, we will move on to the next step.
So keep posting and we will help you through this hunni.

Good luck and if you want to know more just yell, and if you can on the reclaiming/discussion site for PPI.;)

Di.
x

Mike1979

Hi Di

I'll repost it in the thread about PPI - spot the new boy:)

Thanks again

Mike