Problems with PPI - HSBC - cant cancel???

grandmasterofalleviljelly

Hi people,

Hope you can help. I took out a loan with HSBC in November 2005 and was told I would need to take out the 'personal & graduate loan protection plan' as part of the agreement. I Wasnt told that it's a option and wasnt fully informed about it at all. The loan was for 15k. I pay £275 a month over 8 years...£65 of that is for the protection plan.

I know on the back of that I could have a case to claim for a complete refund, however I have successfully claimed on the insurance due to illness.

This is where I've got a problem, according to the advice I cant claim for my money back, is that correct?

I've been into the bank today to try and cancel the policy and get the loan recalculated. They have said I cant because I've had a successful claim. Is this correct?

Do I have a case for either a claim or cancelation?

Thanks in advance.

di3004

grandmasterofalleviljelly wrote: »

Hi people,
Hello and welcome.;)

Hope you can help. I took out a loan with HSBC in November 2005 and was told I would need to take out the 'personal & graduate loan protection plan' as part of the agreement. I Wasnt told that it's a option and wasnt fully informed about it at all. The loan was for 15k. I pay £275 a month over 8 years...£65 of that is for the protection plan.
You should have had the option, so basically they gave you no choice here.

I know on the back of that I could have a case to claim for a complete refund, however I have successfully claimed on the insurance due to illness.
If you have made a successful claim, this will not be classed as mis sold as such.

This is where I've got a problem, according to the advice I cant claim for my money back, is that correct?
I am not certain on this one here, but I take it you mean the ppi you have already paid in to the loan? is that correct?

I've been into the bank today to try and cancel the policy and get the loan recalculated. They have said I cant because I've had a successful claim. Is this correct? I am aware that they all have their own ways with dealing with this, so it varies from one bank to another, although you have made a successful reclaim though I did not think that should stop you from cancelling at any time, hopefully someone else could clarify this for you,

Do I have a case for either a claim or cancelation?

Thanks in advance.

Hopefully someone will post up in regards of this matter, but if your not happy with the way this have been dealt with by the bank you can write to complain if you wanted to, as a reclaim complaint they have 8 weeks to respond in full.

With a bit of luck someone else will post up for you as well, wishing you luck.;)

grandmasterofalleviljelly

Hi

Thanks for replying and giving me some advice. Sorry it's taken me a couple of days to respond, the site wouldnt let me post??

Yes I meant reclaiming the money I have already paid into the loan as part of the ppi.

It's a shame it cant be classed as mis sold...tbh I didnt realise I could claim and had to get back dated evidence from the hospital.

I cant believe I can't cancel the policy, any advice would be appreciated. The cost of the ppi is over £6k over the life of the agreement.

The woman who I saw at the bank suggested I emailed the bank (they have to respond in 48hr) and explained the situation and add that I wasnt told it was optional and what it covered. Do you think I should email and write?

marshallka

grandmasterofalleviljelly wrote: »

Hi

Thanks for replying and giving me some advice. Sorry it's taken me a couple of days to respond, the site wouldnt let me post??

Yes I meant reclaiming the money I have already paid into the loan as part of the ppi.

It's a shame it cant be classed as mis sold...tbh I didnt realise I could claim and had to get back dated evidence from the hospital.

I cant believe I can't cancel the policy, any advice would be appreciated. The cost of the ppi is over £6k over the life of the agreement.

The woman who I saw at the bank suggested I emailed the bank (they have to respond in 48hr) and explained the situation and add that I wasnt told it was optional and what it covered. Do you think I should email and write?

You CAN cancel the policy but you have to remember that the policy was actually "paid for" by way of a loan in the beginning which had interest on it for the full term of your loan. By cancelling it you would only be entitled to whatever is on your policy terms and conditions (usually a percentage) of the unused part of the policy and they do not REBATE the interest charged. Your repayments would only go down by a tiny little and you would still owe all the interest. As you have claimed I agree with Di, I don't think you would be entitled to a missale complaint but you have nothing to lose by complaining if you feel it was not fit for purpose or you were sold it as compulsory to the loan. You have though proved you can actually use it. This is a hard one.

As regards email or write... I would always write and send by recorded delivery too.

grandmasterofalleviljelly

marshallka wrote: »

You CAN cancel the policy but you have to remember that the policy was actually "paid for" by way of a loan in the beginning which had interest on it for the full term of your loan. By cancelling it you would only be entitled to whatever is on your policy terms and conditions (usually a percentage) of the unused part of the policy and they do not REBATE the interest charged. Your repayments would only go down by a tiny little and you would still owe all the interest. As you have claimed I agree with Di, I don't think you would be entitled to a missale complaint but you have nothing to lose by complaining if you feel it was not fit for purpose or you were sold it as compulsory to the loan. You have though proved you can actually use it. This is a hard one.

As regards email or write... I would always write and send by recorded delivery too.

Hi,
Thanks for the advice, I think I'll write and see what they say. I guess I'm stuck with it now would it be ok to post the wording of my letter on here first. Not sure what to put tbh, should I use the templates and see what they say...may give me a option to cancel?

marshallka

grandmasterofalleviljelly wrote: »

Hi,
Thanks for the advice, I think I'll write and see what they say. I guess I'm stuck with it now would it be ok to post the wording of my letter on here first. Not sure what to put tbh, should I use the templates and see what they say...may give me a option to cancel?

There are no templates for this but if you post up i am sure someone will take a look. Just write it in your own words cause only you knows what you are complaining about.