HSBC PPI advice

skunkmonkey

Hi

Just wondering if anyone can give me any advice about my claim with HSBC. I applied for my credit card in 2002 and was accepted. At the time I was 18, fairly naive and unsure about how it worked (stupid I know) - and every month there was an Insurance Premium added to my balance. It was only 79p per £100 on the balance every month but over 9 years it adds up to quite a lot!

I had just assumed this was some kind of compulsory charge and there was nothing I could do about it. A few months ago I realised this was not compulsory and cancelled it - having heard about the furore regarding mis-selling of PPI, I realised that this was exactly what I had been paying the last 9 years.

I complained to HSBC and asked for a refund on the grounds that I had never agreed to pay for this policy (I was not sold it - but it came automatically with the card and it appears I was supposed to opt out), and that as soon as I realised this I cancelled. Therefore as I had never agreed to pay for it I should be refunded.

Their eventual response was a rejection on the grounds that when I "purchased" the PPI they sent a Product Information Pack explaining the cost of the PPI and that I had 30 days to cancel it. I do not remember receiving this but it was a while ago. They also said they can find no evidence that I was informed at the point of sale that it was a requirement of the card, rather than being optional.

But they cannot locate my original application so they consider that "adequate steps were taken to advise you of the main features and claim procedures of your PPI"

My question is do I write back and ask for another review or is it something I am unlikely to win? The amount involved is a few hundred pounds so a significant amount. And if I do write back, is there anything in particular I should say?

Thanks in advance

EDIT - The letter also says that the policy covered "sickness, accident or redundancy." As i went to university in 2003 and was unemployed for the majority of the next 3 years (which HSBC knew about as I changed to a student account with them) would this make a difference?

di3004

skunkmonkey wrote: »

Hi

Just wondering if anyone can give me any advice about my claim with HSBC. I applied for my credit card in 2002 and was accepted. At the time I was 18, fairly naive and unsure about how it worked (stupid I know) - and every month there was an Insurance Premium added to my balance. It was only 79p per £100 on the balance every month but over 9 years it adds up to quite a lot!

I had just assumed this was some kind of compulsory charge and there was nothing I could do about it. A few months ago I realised this was not compulsory and cancelled it - having heard about the furore regarding mis-selling of PPI, I realised that this was exactly what I had been paying the last 9 years.

I complained to HSBC and asked for a refund on the grounds that I had never agreed to pay for this policy (I was not sold it - but it came automatically with the card and it appears I was supposed to opt out), and that as soon as I realised this I cancelled. Therefore as I had never agreed to pay for it I should be refunded.

Their eventual response was a rejection on the grounds that when I "purchased" the PPI they sent a Product Information Pack explaining the cost of the PPI and that I had 30 days to cancel it. I do not remember receiving this but it was a while ago. They also said they can find no evidence that I was informed at the point of sale that it was a requirement of the card, rather than being optional.

But they cannot locate my original application so they consider that "adequate steps were taken to advise you of the main features and claim procedures of your PPI"

My question is do I write back and ask for another review or is it something I am unlikely to win? The amount involved is a few hundred pounds so a significant amount. And if I do write back, is there anything in particular I should say?

Thanks in advance

EDIT - The letter also says that the policy covered "sickness, accident or redundancy." As i went to university in 2003 and was unemployed for the majority of the next 3 years (which HSBC knew about as I changed to a student account with them) would this make a difference?

Hi there

If they did not confirm it was the final decision, then definately write back and ask them to reconsider your complaint, give them further information if you have any, and if you were unemployed at the time of taking this out, and not working then the policy was worthless to you anyway, if this is the case then mention this and the fact that you were a full time student at uni.
Then if they do not reconsider in your favour, maybe you can make a complaint further to the financial ombudsman service (FOS), they should confirm this stage in the final response if eligible or not to go this direction.

Keep at them and good luck.

Premier_2

skunkmonkey wrote: »

... I applied for my credit card in 2002 and was accepted. ...

EDIT - The letter also says that the policy covered "sickness, accident or redundancy." As i went to university in 2003 and was unemployed for the majority of the next 3 years (which HSBC knew about as I changed to a student account with them) would this make a difference?

So were you employed when you took out the credit card in 2002?

The bank don't have a crystal ball and cannot be responsible for what happens after you have taken out the policy.

skunkmonkey

I was working Saturdays as I was still at college so yes I was employed. Point I am making is that I was just 18 and had no idea about how these things worked. If someone had actually explained to me what the policy entailed, I would never have accepted it as at that age if I were having difficulties paying it off I would just ask my parents.

Although the bank did not actually sell it to me, by automatically including it with the card and merely sending me a leaflet saying I could opt out (which I do not remember receiving, but this was a while ago) surely they did not make it clear enough that it was optional.

Anyway, will write to them again to ask for a review. Fingers crossed!

dunstonh

I was working Saturdays as I was still at college so yes I was employed. Point I am making is that I was just 18 and had no idea about how these things worked. If someone had actually explained to me what the policy entailed, I would never have accepted it as at that age if I were having difficulties paying it off I would just ask my parents.

As you say, you were 18 and therefore an adult. Use of parents money would not be a justifiable reason for mis-sale.

Although the bank did not actually sell it to me, by automatically including it with the card and merely sending me a leaflet saying I could opt out (which I do not remember receiving, but this was a while ago) surely they did not make it clear enough that it was optional.

You have just tripped yourself up there. A complaints handler would view that as a reason to reject. You say you remember receiving the leaflet saying you could opt out. So, its pretty clear that they did make it clear enough.

di3004

Hi
Check the policy details, if you no longer have these, they will send them on request.
But can't remember if its 18 or 16 hours you have to work to be eligible for the unemployment side of it, so if you just worked on a Saturday your hours would not have met up to the requirements.

skunkmonkey

dunstonh wrote: »

You have just tripped yourself up there. A complaints handler would view that as a reason to reject. You say you remember receiving the leaflet saying you could opt out. So, its pretty clear that they did make it clear enough.

No. I said I do not remember receiving this leaflet but it was a while ago. As it was more than 6 years ago the bank has no records of any of this, but are assuming it was sent out as that was their policy.

Also di3004, if I ask for policy details would these be the up-to-date details or the ones valid at the time of my application? Just, as above, they claim to have nothing relating to when I first took the card out and it is fairly likely that terms and conditions will have changed over a 9 year period.

dunstonh

No. I said I do not remember receiving this leaflet but it was a while ago

Thanks for the correction.

Time passed is an issue as the longer back in time, the less documentation will exist. So, it makes any complaint harder to make a decision on and it also makes any guess at what an outcome could be a total lottery.

di3004

skunkmonkey wrote: »

No. I said I do not remember receiving this leaflet but it was a while ago. As it was more than 6 years ago the bank has no records of any of this, but are assuming it was sent out as that was their policy.

Also di3004, if I ask for policy details would these be the up-to-date details or the ones valid at the time of my application? Just, as above, they claim to have nothing relating to when I first took the card out and it is fairly likely that terms and conditions will have changed over a 9 year period.

Hi there

As dunstonh have confirmed really, but have you any evidence hanging around from when you were actually a full time student at the time? wonder if this would be of any help to your case perhaps.
The policy details is a booklet of the loan ppi policy, they may differ over the years, but if you could manage to get hold of them it may help.