First Direct - PPI missold claim

J_i_m

Hi Stu.

No further updates as yet, I haven't heard back from the FOS since their initial phone call so I'd assume they're still looking into it.

I received a similarly impressive and long winded refute of my claim from First Direct, which I'd actually find difficult to argue against. Which is why I went to the FOS, because if there is any holes to pick in either side of the dispute, they'll do it.

Take it to the FOS, it won't cost you anything, and it won't affect your relationship with First Direct. PPI thing aside I've always considered First Direct the best bank I've ever dealt with. I still do.

J_i_m

Hello all.

I have received a letter from the FOS, which includes some encouraging and also some irritating news. The FOS has upheld my complaint. But don't celebrate for me yet because HSBC disagrees with the outcome and have requested a final outcome.

I have carefully considered all the information that Mr North and HSBC have provided and I have come to the following conclusion:

The recommendations given to Mr North to buy the payment protection insurance (PPI) polices were not suitable for his needs. If Mr North had been suitably recommended, he would hve not taken out the PPI policies.

In order to settle this complaint, HSBC should now:

Put Mr North in the position he would have been in had he not taken out the PPI policies. Redress should be in line with the attached redress fact-sheet, taking into account the current status of the loan and PPI policies.

HSBC's reason for disagreement is as follows:

We issued the enclosed opinion letter to HSBC upholding the complaint and recommending redress to put Mr North back to the position he would have been in, had he not taken out payment protection insurance (PPI) policies with his loans. (The view incorrectly states the loans had terms of eight years not seven years - this does not affect the outcome). HSBC disagrees with this outcome and requests a final decision.

I'm not quite sure what happened there, since I have always know my loan was for 7 years. So I am responding to the FOS to reaffirm that, but also to add that I do not recall being told that I could buy PPI elsewhere at point of sale, although I can't actually verify that.

So this is ongoing, but I am pleasantly surprised and encouraged that so far the FOS agree with me.

di3004

Good one Jim, yes its best to update/rectify issues with the FOS.

Fingers crossed.;):)

patfla

I am tailing you also.Personal Loan with First Direct with ppi.
I wrote to them and told them to cancel ppi forthwith and i wished to reclaim funds of ppi as I work in the NHS and also that they did not advise me that I couldget ppi from other,significantly cheaper,providers if required.
Within 3 days of my letter they set up a new loan for the balance owing without ppi saving us £294.
No update on refund of premiums,but guess what First Direct no longer offer ppi on their loans.
Pity they blotted their copybook with this issue as I think they are a fair bank.;)

J_i_m

Hmm that's.... interesting. Seems they realise that PPI is more trouble than it's worth. I wouldn't go as far to say that they know they've been rumbled though since they are still fighting tooth & nail not to refund me.

I'm not sure any bank ever set out to deliberately miss-sell anything, but bonus and commission led sales has proven to be huge miss-management because the sales people were too tempted to take full advantage of under informed and probably overly ignorant (I was definitely too ignorant) customers to secure their extras on their salaries.

And First Direct are a good bank, I've always been delighted with their service as a whole, they are lightyears ahead of Barclays who used to make so many mistakes with me it was unreal, and no !!!!!! knew what to do to rectify things, and hence I'd get shafted from pillar to post.

PPI issue aside, First Direct have been brilliant.

marshallka

J_i_m wrote: »

I'm not sure any bank ever set out to deliberately miss-sell anything, but bonus and commission led sales has proven to be huge miss-management because the sales people were too tempted to take full advantage of under informed and probably overly ignorant (I was definitely too ignorant) customers to secure their extras on their salaries.

Although the sales people that have ever posted on here have led us to believe that they were pushed into selling policies (against their will of course!!!) because they had to reach sales targets!!

patfla

Hi all,Just an updaate.
Recieved a phone call about our complaint.We stated that
a.the loan was in joint names and only one of us was covered,however we are both NHS employees and recieve sick pay etc if off work.
b.that if something untoward was to happen the insured then the joint borrower may be chased for the remainder of the money.
c.that the bank had a responsibilty to advise us as customers if the PPI was appropriate.
Got a lettter this a.m.to reject our complaint.
Firstly:The choice to include the policy was purely yours.As the application was made online,It is your responsibility to ensure if you were eligible for the cover.
We are now very much annoyed by this attitude as the PPI was loaded at the commencement,we do not see any reference in T & C of
specifics regarding employment status with regard to recieving sick pay while off work and therefore excluding PPI.
Time to send template 2

di3004

patfla wrote: »

Hi all,Just an updaate.
Recieved a phone call about our complaint.We stated that
a.the loan was in joint names and only one of us was covered,however we are both NHS employees and recieve sick pay etc if off work.
b.that if something untoward was to happen the insured then the joint borrower may be chased for the remainder of the money.
c.that the bank had a responsibilty to advise us as customers if the PPI was appropriate.
Got a lettter this a.m.to reject our complaint.
Firstly:The choice to include the policy was purely yours.As the application was made online,It is your responsibility to ensure if you were eligible for the cover.
We are now very much annoyed by this attitude as the PPI was loaded at the commencement,we do not see any reference in T & C of
specifics regarding employment status with regard to recieving sick pay while off work and therefore excluding PPI.
Time to send template 2

Hiya

Wishing you luck with this.

I understand that even with some online applications you would still have to opt for ppi, because if this part was not ticked I have heard that some were unable to continue with the application.
Don't know if this would have been the case for you, but good luck anyway and keep at them.;)

J_i_m

How did they work that one out? I'm pretty sure you can't complete the loan application on-line, I thought it was completed over the phone, and then they send out the loan agreement.

And they may think that it is the customer's responsibly to know if they require PPI or not... but surely it's their responsibility not to miss-sell? Had they asked the appropriate questions to me and given me adequate and honest advice, I'd have never accepted PPI, because frankly why would you if you were already covered?

I think they're clutching at straws with this one.

J_i_m

Not an update as such (at least not directly to do with my case, since I haven't heard anything since my last update) but I have a semi explanation to why HSBC/First Direct have been rejecting complaints with strong almost aggressive responses.

I have a family member who works for HSBC and they were pulled from their usual duties and put on to work on the PPI complaints. He said to me that they had actually been accepting most complaints without much argument until about February when apparently the FOS told them they'd actually been paying back/out too much! (Not sure how much I believe that, sounds more like typical !!!!!!!! that managers would throw at their staff in desperation to save money). At which point the staff have basically been told to simply reject all further complaints.

It would certainly help to explain why all similar cases I found evidence of before making my own complaint seemed to be fairly straight forward and fast with a result favourable to the customer, and then everything since February everything basically seems to be "No" followed by many blowing of raspberries.