Collection calls from bank - all while having Card Protection without knowing! HELP!

cherrybelle

Hi all,

I am having issues with my bank - and wondering if any of you could shed some light on this situation.

I have 3 credit cards with 3 different banks: HSBC, Virgin and Santander. My main bank is HSBC, where I have a current and savings account too.
Unfortunately, I was one of those people very affected by the credit crunch, and during 2010 I basically didn't work. I could not get JSA as I had been self employed during a certain tax year. I was active looking for work but didn't manage to find one. I was living off my partner, and off a tax rebate but that soon ran out as my credit card payments kept coming out of my current account, as well as phone bills. Soon enough the collection calls started from HSBC. I had let them know about my unemployed situation but they showed very little sympathy and treated me like a little kid - suggesting I should go to the Job Centre etc - and repeatedly asking WHEN I could put money in my account - even though I told them I had NOTHING and therefor couldn't say. These calls would go on and on and I had to borrow money in order to avoid HSBC calling me, just so my outgoings would be covered, so there would be no bills bouncing or going more overdrawn. There was no sympathy whatsoever or understanding that I was in a very difficult position (I suffered from depression as a result of losing work and getting into debt so I was already on anti depressants and councelling on the NHS, and prepared to go bankrupt which is a huge stress in itself...) Anyway!

Luckily I got some work earlier this year, so a few weeks ago, I called Virgin to pay off my full outstanding credit card balance. While doing the payment, the customer service advisor informed me that my Card Protection had just been taken out of that account - something I had no idea about. I asked her about it, saying that I was pretty sure I didn't take card protection out when opening that account. They looked through the transactions and couldn't find any proof that I had taken one out with them either - so asked me to check with my bank (HSBC) if I had bought the protection from them. I seem to remember taking out a card protection years ago, fair enough, but did not know that it would get renewed each year with no further notice.

I contacted HSBC - and they confirmed that indeed I had the protection and indeed I had taken it out with them! At which point I was like ''hang on a second...all these collection calls, and all along you knew I was covered?''. They apologised for the problems caused and agreed to raise a complaint about it. I received a letter a few days ago from HSBC basically saying that their customer service staff are not trained in establishing whether I would be covered, but it is my responsibility to contact the insurance company.
I did not even know I had an insurance - but surely, during these collection calls (that were going on for MONTHS on end), you'd think a customer would be informed that they had protection! I would obviously have made a claim had I known I was protected! I had no idea I had the Card Protection!!!
HSBC states in the letter that they assure me that the bank is committed to working with customers in financial difficulties - so how come they managed to avoid letting me know/advising me to make a claim with a protection plan that I BOUGHT FROM THEM.

I am taking this further - but just wanted to know your views on this. Anyone else found themselves in this situation?
If you were in a difficult financial situation and hounded by your own bank and charged fees for late payments, and then suddenly found out that you were covered for unemployment all along, would you have expected your bank to inform you about the cover, or would you accept that it's your own responsibility to find out?! I would have thought that Customer Service was exactly that - a service to help customers (I'm a loyal customer of 13 years with no previous financial problems) - not a service that hides crucial information such as an insurance I didn't know I had!

Sorry if this is messy - does anyone know whether I'm in the right or totally in the wrong?!
Fair enough it's a customers responsibility to make a claim, but if you don't know you're covered, surely the bank (if indeed they were committed to help) would have informed me about this protection I am paying for?!

Thanks for reading

Culex

In the UK, banks provide service to customers rather like bulls "service" cows.