HSBC PPI Claim

DaveMarra

Right! I'm now getting seriously annoyed as this is the third time i've wrote this and i'm supposed to be house hunting! I keep getting logged out! I don't know why!

I took out a loan in November 2006 for 60 months;

Amount - £6740 (£9588.26 inc. interest)
PPI Cost - £1720 (£2446.91 inc. interest)
Total Borrowed - £12,035.17 (£3,575.17 of which is interest)

Obviously i appreciate that i am paying rediculous amounts of interest, but also i was charged intereston the PPI. I was first appointed to this site from a mortgage advisor who asked me why i took out the PPI. I stated that i needed it to get the loan and he told me that was garbage!

I sent off the first template letter (from this site) on the 10th of August 2009 and received a reply by the 20th August (just 10 days!!) stating that they were looking into my case and that a full response will be provided in four weeks. If it shall take any longer than 8 weeks they would advise me on additional guidance.

I then received another letter on the 10th September saying that they were still looking into my case but others have priority, and that a full investigation will be completed in the next four weeks. Hopefully this would be the case and i won't have to go to the FOS!

I'd like to know if i'd be expected to get back the PPI plus interest, which would be deducted from the remainder of the loan should i be successful.

I appreciate there may be not a lot to comment on just now but hopefully this may help others that are in the same position! I'll keep you all posted!

Thanks for reading,
Dave :rolleyes:

marshallka

Hi, if you make a complaint for misselling and its upheld you can expect to be put back into the position as if you never had the PPI so it would be the PPI, interest and you can also ask for 8% statutory interest on top. You would usually have this redressed (providing no arrears have ever been on the loan) as whatever you have actually paid against the PPI to date as a cheque with 8% statutory interest on each repayment and then the remaining PPI and interest is taken from the loan balance and a new loan (of the same rate and terms usually to be fair) drawn up. If the loan is settled and you settled early this is done different in that you would receive back all the PPI and interest you have paid and been charged at settlement (taking into account any rebate you had on the PPI and interest) and be put back into the position as if you never had the PPI and 8% interest again.

Hope this helps.

DaveMarra

wow, that is sooooo confusing, i'm gonna have to read that a few times!

DaveMarra

I'm currently still paying the loan, i owe about £5000 so i take it most of the interest is paid off? They informed me that you pay interest first, is that correct?

So if i owe 5000 and the PPI + interest + 8% is 2500 i'll have a remaining loan of 2500? In that case could i pay off the 2500 with the 2500 paid back from the PPI?

marshallka

DaveMarra wrote: »

I'm currently still paying the loan, i owe about £5000 so i take it most of the interest is paid off? They informed me that you pay interest first, is that correct?

So if i owe 5000 and the PPI + interest + 8% is 2500 i'll have a remaining loan of 2500? In that case could i pay off the 2500 with the 2500 paid back from the PPI?

Don't know how you would work that one. I take it you mean this was front loaded then? Have you got it in your terms and conditions that this was front loaded? Usually this is where rule 78 comes in if you pay the loan off early but was abolished for new loans since 2005 and loans of 10 years or more but can still be used on smaller loans taken our before 2005. The reform applied immediately for new borrowers. Existing ones who had loans for terms of 10 years or less, and want to settle early, will not benefit until 2007. Those with loans for longer than 10 years will not be covered until 2010.

It works out how much interest you should have paid at any time during the repayment period of a loan. Its main feature is that the interest is not spread evenly over the payments during the term of the loan. Under rule of 78 you pay more interest in the beginning of a loan and as each repayment is the same size, the part paying off the capital is smaller in the beginning of the loan increasing over time.

Basically your loan was 2006 so this should not have been applied but you would still get back what you have actually paid against the PPI to date. If you win you could ask them for a full breakdown of the insurance and check it all then before accepting.

Perhaps someone else will be along with some advice on this one.

DaveMarra

I shall do that, surely most banks would claim you pay the insurance last, therefore would just cancel it and then not have to give you any money?

marshallka

DaveMarra wrote: »

I shall do that, surely most banks would claim you pay the insurance last, therefore would just cancel it and then not have to give you any money?

Single premiums are paid in one lump sum over to the insurer by way of getting you to loan more money from the lender. Once they are on the agreement they are then treated in the same way as a loan. They are a loan and incur interest just like your original loan.

DaveMarra

Great news got my letter back 3 days after the deadline for HSBC offering me round about £1800 cancelling my PPI and restructuring my loan.

I'm currently moving into my new house so this could not have come at a better time!

di3004

DaveMarra wrote: »

Great news got my letter back 3 days after the deadline for HSBC offering me round about £1800 cancelling my PPI and restructuring my loan.

I'm currently moving into my new house so this could not have come at a better time!

Well done Dave, Congratulations.
:beer::T:beer: