Explanation Needed

mangle101

Good Morning Everyone,

This is my first post to this forum & i have a couple of questions in regards to loan protection.

Firstly, i currently have a loan with HSBC with PPI attached, can someone please explain to me if when i got my loan the PPI was taken out in one lump sum on the day that the loan was applied to my account.

Secondly, on a couple of previous loans that i have had with HSBC they have taken the PPI payments out on a monthly basis so, why are they different?:huh:

petermb_2

mangle101 wrote: »

Good Morning Everyone,

This is my first post to this forum & i have a couple of questions in regards to loan protection.

Firstly, i currently have a loan with HSBC with PPI attached, can someone please explain to me if when i got my loan the PPI was taken out in one lump sum on the day that the loan was applied to my account.

Secondly, on a couple of previous loans that i have had with HSBC they have taken the PPI payments out on a monthly basis so, why are they different?:huh:

If you have a copy of the agreement you will see the amount borrowed and if you have paid a single premium policy it will state, optional protection insurance premium or similar.

The only way to know with your former loans is to SARN the lender and request copies of the statements. If the PPI was paid as a single premium it will normally state at the beginning of the loan statement.

mangle101

petermb - Thanks for that i will check my agreement.

I do have statements for previous loans ( But no agreements yet ) & on these statements it shows that the PPI on some of my previous loans was taken as one lump sum yet on others the PPI was taken out on a monthly basis, can you explain this? Apologies if i am sounding dense!

I have a meeting next week with HSBC as they want to look at the PPI on my current loan & change it, is there any advice that you can give me as to how i should proceed?

petermb_2

mangle101 wrote: »

petermb - Thanks for that i will check my agreement.

I do have statements for previous loans ( But no agreements yet ) & on these statements it shows that the PPI on some of my previous loans was taken as one lump sum yet on others the PPI was taken out on a monthly basis, can you explain this? Apologies if i am sounding dense!

I have a meeting next week with HSBC as they want to look at the PPI on my current loan & change it, is there any advice that you can give me as to how i should proceed?

I find it interesting that some are monthly and some are single premium. It does not surprise me though. I think it depends on who is actually signing the forms with you.

As for HSBC. Depending on why you think you should not have been sold the policy(s) determines what you should expect as an outcome.

If you feel it was mis-sold you should be looking to be put back to the position when taking the loan out without the PPI. This means a refund of premiums paid plus interest. You would also need the premium amount removing from your account and then be looking for statutory interest of 8% on the lot.

mangle101

On my agreement it states "Fixed Sum" loan.

Also, it states that the PPI WILL be repayed on a monthly basis so, why remove it in one lump sum?

petermb_2

mangle101 wrote: »

On my agreement it states "Fixed Sum" loan.

Also, it states that the PPI WILL be repayed on a monthly basis so, why remove it in one lump sum?

It was a single premium policy but they have highlighted the cost separately.