Restructuring of loan after ppi charges refunded

chicadclovers

Hi,

I recently contacted my bank HSBC about ppi charges on my loan. They have offered me a refund on all ppi paiyments. But my main concern is, is that they need to reconstruct my loan before they do this. I am afraid they will recalculate the interest again?
Is this the norm to recalculate it?

Daniella

di3004

chicadclovers wrote: »

Hi,

I recently contacted my bank HSBC about ppi charges on my loan. They have offered me a refund on all ppi paiyments. But my main concern is, is that they need to reconstruct my loan before they do this. I am afraid they will recalculate the interest again?
Is this the norm to recalculate it?

Daniella

Hello and welcome.;)

Ask them to send you a full detailed written breakdown on this, you are entitled to see this.

They all vary but for more information our maxdp posted a thread on how the FOS works out calculations/refunds etc, this may give you an idea here:
http://forums.moneysavingexpert.com/showthread.html?t=1596473

Good luck.

marshallka

chicadclovers wrote: »

Hi,

I recently contacted my bank HSBC about ppi charges on my loan. They have offered me a refund on all ppi paiyments. But my main concern is, is that they need to reconstruct my loan before they do this. I am afraid they will recalculate the interest again?
Is this the norm to recalculate it?

Daniella

If this is a redress of the full amount of the PPI (ie they are putting you back into the position as if you never had the PPI at all and then 8% statutory interest on top) then your new loan should be at the same rate and terms as before. I would state that you need in writing that they are putting you back into this position or you will take the complaint further (that is if you wish to). FOS do however have a long waiting list for complaints but I would think by saying this you are covering yourself. Also ask for a full breakdown of the redress.

dec22

chicadclovers wrote: »

Hi,

I recently contacted my bank HSBC about ppi charges on my loan. They have offered me a refund on all ppi paiyments. But my main concern is, is that they need to reconstruct my loan before they do this. I am afraid they will recalculate the interest again?
Is this the norm to recalculate it?

Daniella

This appears to be standard practice for HSBC as I have helped 2 friends get refunds from HSBC and their's was dealt with in the same way. They had to go into the branch and sign a new agreement excluding PPI but nothing really changes except your payment will be lower as it will exclude PPI. Terms ie interest and remaining number of payments don't change. This doen't impact on your credit as they have said they don't do any credit searches, it jsut signing a new agreement.

They then received a refund of payments made, including 8% interest directly into their bank accounts within 3 to 4 days after restructuring.

Hope this helps.

jju5t

hi dec congratulations on refund!

can u give me an idea of how they dealt with your refund from hsbc as im in the middle of mine being done and things are just not adding up.

for iinstance did u get the loan restructured then recieve a refund?
was it one big payment or did they break it down into smaller payments?

when they recalculated your loan how did they do it? payed off the original loan using current account then readded a new loan to your account??

thanks any help will be used to screw the banks as much as i possible can

marshallka

jju5t wrote: »

hi dec congratulations on refund!

can u give me an idea of how they dealt with your refund from hsbc as im in the middle of mine being done and things are just not adding up.

for iinstance did u get the loan restructured then recieve a refund?
was it one big payment or did they break it down into smaller payments?

when they recalculated your loan how did they do it? payed off the original loan using current account then readded a new loan to your account??

thanks any help will be used to screw the banks as much as i possible can

I have left a post for you on the other thread.