Loan PPI - Court action!

robert_harper_2000

Thought I would start a new thread for this one and would appreciate any advice.

I've been helping my brother with his accounts did the usual account fines got him over £600 back! but since going further notice he had loan insurance which he didn't know he had.

It's with HSBC on a loan of £3000 insurance was £800!! I've tried cancelling ... 11 letters to be exact! But got no where except they will re-finance the loan 'thanks' the insurance is of no use and has been mis-sold. My brother lives at home and works with our Dad! He was ripped.

I've since started court action and want to know if anyone has done this before?? Any Advice - what's everyones views

jonesMUFCforever

How exactly has the PPI been mis-sold?
Living at home and working for his dad doesn't stop him breaking his leg and not being able to work for 2 months or more (or worse).

robert_harper_2000

It's worse than that. We run our family business through this branch and have used it for many decades! They know us well and understand how my Dad would help out in anyway. I asked if the woman who sold him the insurance has it - no I wouldn't bother, she admitted it was a rip-off and she was to offer it to everyone!

Not only to who need it but everyone. These insurances are a rip-off

jonesMUFCforever

Sorry but No; the bank will completely disregard 'the family' business when dealing with a personal customer. It has nothing to do with this transaction.

I agree that if the adviser was signing up everybody willy nilly for PPI then her bank would be in trouble with the regulatory authorities.

When you apply for a personal loan the bank will not know that daddy will help out if you have financial difficulties- indeed I have to ask why did daddy not just give him the money to pay off his debts?

Astaroth

Well, the misses handled 341 defended court actions for miss selling PPI and the bank won 323 of them.

The best was that a fair number of them were over the small track court limits so the customer not only still had to pay the PPI but had to pay the legal fees for the bank in question (I am sure they will have offered a loan with PPI to them as bank solicitors dont come cheap)

itsakidsworld

If you really believe that the bank has mis-sold your brother a policy, then it will not make a difference what anyone posts to assist you as your mind will be made up.

Thats fair enough but maybe sit back from the situation and look at the complete picture. Has anybody really done anything wrong? People sell everything in this world, its how we all live. But when it does not work out as we hoped, we look around to blame anybody but ourselves. Sometimes accepting the problem is of your own making can help matters.

If that is the case here, it could benefit you and your brother to re-structure the loans without this policy, as you stated you were looking to do. Then learn from the experience and hopefully move on.

Not a negative at you in anyway, hopefully just some good basic advice.

Good luck with whatever you choose.

robert_harper_2000

Good to get some input from everyone. The thing is the banks HAVE to explain it properly and if they had explain the costs and what it covered he would have understood it is not for him.

Thanks though - will keep you posted

Mark7799

Their defence MAY be that your brother signed the document of his own free will and was given the opportunity to read it before he signed it and he raised no questions at the time. Not commenting upon the ethics of this, merely remembering a process when I was in banking.

ArchieB_2

I would look at it from a customers perspective - if I am sold ASU cover on a loan and the seller (bank) is aware of my employment situation they should at the very least highlight the fact you could not claim on the U part of the policy. In 90% of cases the client would not take up the cover thus I do believe the policy was mis sold. Selling practices 5 years ago were shocking so I would let the ombudsman decide if selling a product that only meets 50% of the needs of the customer is fair.

ArchieB_2

Looking at this, why isn't he covered under the U part of the policy?

Astaroth

I dont think this is a case of mis-selling but that having been fortunate enough not to make a claim the brother is now in a possition that a refund would clear off the majority of the outstanding debt and therefore having been covered for X years suddenly doesnt think it was worthwhile.