how do I cancel PPI on my HSBC loan?

turboscool

Hi

I have payment protection on my personal loan with HSBC, i sent a letter to cancel it last year but never heard anything back. When reading the policy document it says I can only cancel within 30 days and the only other way to stop the policy is if I were pay it off early or to take out a new plan/loan which means going down the route of applying for a new loan etc..

I simply want to cancel it, not claim back for any previous payments, just cancel it. I've been reading quite a few articles and none of them point me in the right direction of how I can go about this. No help from HSBC as you would expect, before i go back to the bank i want to be sure i know all my rights etc.

my paperwork clearly separates the total interest on the PPI for the duration of the loan so surely it could be easily removed without having to reapply. I've never made a claim aganst it either.

I found an article on the money made clear website, under unfair contracts, which seems to suggest trade bodies have agreed firms should pay back money but nothing about the right to cancel, any clarification welcome?
can anybody advise please?

If I can reclaim anything then thats bonus but I don't expect to be able to.

Many thanks

maxdp

turboscool wrote: »

Hi

I have payment protection on my personal loan with HSBC, i sent a letter to cancel it last year but never heard anything back. When reading the policy document it says I can only cancel within 30 days and the only other way to stop the policy is if I were pay it off early or to take out a new plan/loan which means going down the route of applying for a new loan etc..

I simply want to cancel it, not claim back for any previous payments, just cancel it. I've been reading quite a few articles and none of them point me in the right direction of how I can go about this. No help from HSBC as you would expect, before i go back to the bank i want to be sure i know all my rights etc.

my paperwork clearly separates the total interest on the PPI for the duration of the loan so surely it could be easily removed without having to reapply. I've never made a claim aganst it either.

I found an article on the money made clear website, under unfair contracts, which seems to suggest trade bodies have agreed firms should pay back money but nothing about the right to cancel, any clarification welcome?
can anybody advise please?

If I can reclaim anything then thats bonus but I don't expect to be able to.

Many thanks

Hi There

Yes you can cancel but because the PPI was added up front on your loan you will have to re-schedule the loan if you cancel the PPI.

It is not like PPI on say a credit card where it is a stand alone policy.

They should give you an interest rate that was simiilar or less than the original loan.

Good Luck

marshallka

turboscool wrote: »

Hi

I have payment protection on my personal loan with HSBC, i sent a letter to cancel it last year but never heard anything back. When reading the policy document it says I can only cancel within 30 days and the only other way to stop the policy is if I were pay it off early or to take out a new plan/loan which means going down the route of applying for a new loan etc..

I simply want to cancel it, not claim back for any previous payments, just cancel it. I've been reading quite a few articles and none of them point me in the right direction of how I can go about this. No help from HSBC as you would expect, before i go back to the bank i want to be sure i know all my rights etc.

my paperwork clearly separates the total interest on the PPI for the duration of the loan so surely it could be easily removed without having to reapply. I've never made a claim aganst it either.

I found an article on the money made clear website, under unfair contracts, which seems to suggest trade bodies have agreed firms should pay back money but nothing about the right to cancel, any clarification welcome?
can anybody advise please?

If I can reclaim anything then thats bonus but I don't expect to be able to.

Many thanks

Did they not respond to your cancellation letter last year? Do you have proof of this?

Some info here
http://www.which.co.uk/advice/cancelling-your-ppi-policy/index.jsp

http://www.moneymadeclear.fsa.gov.uk/news/product/unfair_contracts/ppi/ppi_information.html

turboscool

thanks,

I never received a reply after I sent a letter to the branch, after I sent it I re-read the terms and conditions and it sounded like I couldn't cancel so didn't pursue! Not sure I've got a copy anymore, oh well.

I'm definitely going to the branch this week to discuss, I was worried they would fob me off. one thing that still confuses me is that I have a settlement figure at 3/4 of my loan term which is upon me now as have 1 year left. I presume this figure includes the PPI each month (£62) which in theory should mean any re-schedule would mean the settlement figure would adjust to approx £744 cheaper!

I'll post again when I've found out more.

Thanks again

marshallka

turboscool wrote: »

thanks,

I never received a reply after I sent a letter to the branch, after I sent it I re-read the terms and conditions and it sounded like I couldn't cancel so didn't pursue! Not sure I've got a copy anymore, oh well.

I'm definitely going to the branch this week to discuss, I was worried they would fob me off. one thing that still confuses me is that I have a settlement figure at 3/4 of my loan term which is upon me now as have 1 year left. I presume this figure includes the PPI each month (£62) which in theory should mean any re-schedule would mean the settlement figure would adjust to approx £744 cheaper!

I'll post again when I've found out more.

Thanks again

Your settlement will be high because of the lump sum PPI which was added to whatever you actually borrowed from them in the beginning making in fact a higher loan over the same term and often the PPI only covers the first 5 years. Don't know if your loan was longer than that???

Also when you cancel the PPI I doubt that your loan will reduce by as much as you are thinking and also the repayments won't probably go down by too much either.

mangle101

I have a meeting at my local HSBC branch this Friday after having received a letter from their Customer Information Service Dept back in November with regards to re-structuring my loan. There is a telephone number within the letter saying that if i have any questions etc call : 0800 130 130 ( 8am - 10pm ) Whilst there i will be trying to reclaim back my PPI before agreeing anything!

di3004

mangle101 wrote: »

I have a meeting at my local HSBC branch this Friday after having received a letter from their Customer Information Service Dept back in November with regards to re-structuring my loan. There is a telephone number within the letter saying that if i have any questions etc call : 0800 130 130 ( 8am - 10pm ) Whilst there i will be trying to reclaim back my PPI before agreeing anything!

Hi there
Good luck with this.
However, I would personally keep everything in writing in regards of PPI reclaiming, in case you have to refer to this later on, for example, if they did not resolve your case - they should also keep this in black and white, where you keep copies to send to the financial ombudsman service.;)

tommy44

Hi

The same thing happened to me only, I rang up to cancel the insurance on my loan, only to be told that I was no longer covered, as the Insurance only covered the first 5 years of the loan and that I was 61 months into the loan. I asked how much my monthly payments would be reduced by, to be told that the monthly payment was staying the same. I said "what?". So I am no longer covered, but I have to continue paying for cover?. Does not make sense now and wouldn't have made sense then when I agreed to take out the cover. Plus, my agreement clearly states what the Insurance amount was and that it was separate for the loan. It was pointed out that it does state that the cover only lasts for the first 5 years on the agreement in small print, but it doesn't state or explain anywhere on the agreement that you still had to pay an insurance premium with interest for the full term of the loan. In my case 20 years left of the term. Contradictory???. Wrong?

I had no intention to claim back anything, I just wanted to lower my monthly outgoings as I am financially stretched, and a reduced monthly payment minus protection would have helped my budget. I stumbled across this accidently. I was angry to say the least and searched the web for advice and found this forum.

Good luck

turboscool

hmm, seems there is no simple answer to all of this. All i know is that if i take something out and have never used and I want to cancel it, then I should have the right to do that, the fact that the ppi makes up part of my monthly payment in my eyes should mean that monthly payment comes down. I never borrowed the £2000+ had it in my account so i could then pay for the ppi, if i'd have had that money i wouldve shopped around so as to save some of it and spend on something worthwhile (but i do appreciate what has happened and why cancelling it wont necessarily bring it down, in fatc there is no point cancelling it if thats what will happen). I thought it was simply a monthly amount (based on the way its broken down/presented in my document) added to my loan repayments. Absolute stinger but hey I suppose I shouldve done my homework at the time, just felt ive been mislead as to exactly what it was, I simply don't need it anymore.

There is some information about 'early repayment or replacing the loan' in my policy document but it's so vague I don't get quite what exactly its referring to.

Im still going to see what they say on friday and try my luck, fingers crossed!

thanks for all the useful help!