HSBC Life Choices - Mis sold

robbo1234biking

Hi there I am wondering if anyone can advise me? My OH took out a loan from HSBC and was sold their lifechoices product on the basis that she was told that if she were to die the debt would pass onto the next of kin. From reading threads on here I understand that this is in fact not correct. Can anyone confirm this?

If so is it possible to reclaim the charges? As all the banking is done with HSBC I am guessing this may not be a good idea as they may agree but want to close down all accounts (savings, ISA, Current account, joint account) so may be more hastle than it is worth

Thanks

McKneff

Does she have this in writing. If not its a case of their word against hers.
It seems a bit confusing you saying the debt would pass to someone else.

The point of buying something like this is to do exactly the opposite.

You need to read the text properly.

robbo1234biking

Sorry maybe I didnt make it very clear. The protection she brought means that the debt would be paid of in the event of a death.

However from what I understand any debts are paid of from the estate and if there is nothing left then the debt is written off - is that correct?

McKneff

The protection she brought means that the debt would be paid of in the event of a death.

this is the truth so no mis selling involved.
and not necessarily, if anything is in joint names the debt goes to the partners.

However from what I understand any debts are paid of from the estate and if there is nothing left then the debt is written off - is that correct?

Its not as simple as that really but just because of that fact doesnt really mean that it has been mis sold. Otherwise nobody at all would buy these plans. Nobody would lend anyone anything just in case the died and have the debt written off, that is the reason for these plans/insurance. I think youre on a hiding to nothing. sorry

robbo1234biking

Not too bothered about claiming the money back to be honest was more a case of whether to continue the protection! Think for peace of mind it might be best then

welshy2000

Its not as simple as that really but just because of that fact doesnt really mean that it has been mis sold. Otherwise nobody at all would buy these plans. Nobody would lend anyone anything just in case the died and have the debt written off, that is the reason for these plans/insurance. I think youre on a hiding to nothing. sorry

Typical jibber jabber tosh found on these forums - disappointed I didn't read this nearer to your posting date!

The debt cannot pass onto the next of kin unless they were jointly responsible for it - i.e a joint application.

If it is unsecured they have no re-course if there is nothing in the estate, and yes it is that simple.

I used to work for HSBC, at one point selling personal loans and their HORRIFIC PPI (and your stated reason was a common 'objection handler' that the staff were TRAINED to say - not even the staff believed it!), which is extortionate - before interest is added to on top of it.

If HSBC did not tell you that it was optional, that you could take the policy from a competitor, did not question your medical history or if you were unemployed/self employed then it WAS missold - you only need one of these to be the case. If the PPI was bought PURELY on the premise of your stated reason, claim it back. All calls ARE recorded, if it wasn't they can't prove that what your saying didn't happen - this applies to branch applications also.

Claim the PPI back, with interest, cancel it and get a PROPER income protection plan for piece of mind, at worst an ASU policy that covers all or more of your commitements, not just your loan.