PPI Claim Query

smity67

Hi guys,

I'm hoping for some advice. I took out a £10k unsecured loan with PPI costing £1823.44 with my bank HSBC. Under the current economic climate I recently had my working hours almost halved. Therefore, I contacted my bank to inform them and find out if my PPI could help me meet my monthly repayments, only to be told that I could only make a claim if I had been made redundant. I believed that unless I was in full time employment then the PPI would cover my repayments.

As I have other monthly bills to pay, I made sure to pay these before the bank debited my loan repayment from my account, as I knew that I would be unable to meet this repayment. However, the payment was debited from my account resulting in my overdraft limited being exceeded and thus incurring bank charges!

Can I cancel my PPI as it does not meet my needs and would I be able to reclaim?

Also, at the time of taking out the loan, I was not made aware that I could take out my own PPI independently. Is this sufficient grounds for reclaiming?

Any advice would be greatly appreciated.

di3004

smity67 wrote: »

Hi guys,
Hello and welcome.;)

I'm hoping for some advice. I took out a £10k unsecured loan with PPI costing £1823.44 with my bank HSBC. Under the current economic climate I recently had my working hours almost halved. Therefore, I contacted my bank to inform them and find out if my PPI could help me meet my monthly repayments, only to be told that I could only make a claim if I had been made redundant. I believed that unless I was in full time employment then the PPI would cover my repayments.
They obviously did not explain this policy to you on the sale of this then, did they provide you with the written details of this, such as explaining how this works and the terms and conds etc?

As I have other monthly bills to pay, I made sure to pay these before the bank debited my loan repayment from my account, as I knew that I would be unable to meet this repayment. However, the payment was debited from my account resulting in my overdraft limited being exceeded and thus incurring bank charges!
So sorry to hear this, you could actually try to come to an arrangement in writing about this.
It may also be useful to post on the reclaiming charges thread as well, here:
http://forums.moneysavingexpert.com/forumdisplay.html?f=102
I would keep the charges separate to the PPI reclaiming.

Can I cancel my PPI as it does not meet my needs and would I be able to reclaim?
Yes you can or should be able to, however if you can check the terms and conds if you have these, they may have them on their website, but if the cooling period have passed your monthly repayments may not drop by that much, I would check with them on this if you can.
But it is your choice if you want to cancel the PPI or not.
You can still reclaim on this.

Also, at the time of taking out the loan, I was not made aware that I could take out my own PPI independently. Is this sufficient grounds for reclaiming?

Any advice would be greatly appreciated.

In my opinion, I would say yes and there is no harm in giving it a go, the policy was not explained to you by the seems of it either.

For more information check the reclaiming of PPI link below here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

You will find useful information, and guidelines of reclaiming, a check list of mis selling reasons and templates, however you do not have to use the templates, but write in your own words if you want to with your reasons as you have stated and anything in the check list that may also occur to you.

They have 8 weeks in full to respond.
You do not have to write the amounts down though.

Keep at them until they resolve in your favour, or until they issue you with the final response, which should also enclose details of the financial ombudsman service (FOS), you should be able to take your complaints to these if your not happy with the outcome.
The last final letter from the bank should confirm if you can go this direction or not.

Post by recorded delivery, this is your proof of posting, good luck and please keep us posted, cheers.;)

Di