Income protection policy required for loan with HSBC

ashley71_2

Hi There,

I was sold an income protection policy by HSBC who told me that I would need to take it out in order to get the loan I wanted. This was back in around 2000. I have taken subsequent loans from HSBC and they have stated that the policy should contimue to run to cover these.

Looking back ot the T&Cs it turns out that I was not covered as I was self emplyed when I took the policy out and it didnt cover my company going bust. I have also disovered that the policy will only start to pay out after being off work for 6 months and so would have been no use to me short term to cover any loann repayments.

I only rrealised recently that I am still paying the premium which is about £35 per month !

Do i have a case against my bank ?

dunstonh

Looking back ot the T&Cs it turns out that I was not covered as I was self emplyed when I took the policy out and it didnt cover my company going bust.

Most income protection plans do not cover unemployment or company failing. That tends to come with PPI. What you describe sound like PHI - permanent health insurance.

I have also disovered that the policy will only start to pay out after being off work for 6 months and so would have been no use to me short term to cover any loann repayments.

Again quite normal. Most people have the emergency fund to cover the short term. Plus, it gets very expensive to insure short term.

Do i have a case against my bank ?

Very unlikely. Unlike PPI, PHI is sold under a full advice process. That means a factfind, needs analysis and suitability report. All the things that are missing from most PPI sales and what makes them easier to complain about.

Plus, its not single premium or added to the loan. Its set up how it should be. So, again, no grounds there either.

PHI has no direct association with loans. So, you can keep it for as long as you like.

So, unless you have evidence to support your claim that you were forced to have it, then its highly unlikely you would succeed in any complaint. Mainly as this is actually the sort of product you ideally want to have rather than PPI and its set up correctly.