HSBC Mortgage Protection Insurance

joncow75

I'm not really sure if this is covered under PPI miss-sell, but was after some advice

I successfully claimed for PPI on 2 loans i had with HSBC last year. These loans were from around 2004/05 had front loaded PPI and I had an income protection policy at the time through HSBC. Only thinking back now have I thought that when I bought my first house in 2001 with my ex wife, and again in 2003 when I bought my own home, I had to take out a Mortage Protection Policy with HSBC. Again I had an Income protection policy through HSBC at this time, so would think I would have adequate cover to pay for any issues. Just before I got married the financial advisor had my fiancee and I tied up to all sorts of insurance covers inc the income protection and life cover

I suppose my question is

1. Did I have to take this cover if I had plenty of cover in place
2. Have I been advised badly and therefore miss sold insurance I didn't need (at no point was I told I could get from an alternative source either)
3. Is it worth me asking the question with HSBC.

Thanks for your time

dunstonh

I had to take out a Mortage Protection Policy with HSBC. Again I had an Income protection policy through HSBC at this time, so would think I would have adequate cover to pay for any issues.

The income protection policy would have had a deferment period that it typically 3 months, 6 months, 9 months or 12 months. The PPI deferment period is normally around 30 days and p

ays out for a maximum of 12 months.

It is quite normal for people to have both MPPI and PHI.

1. Did I have to take this cover if I had plenty of cover in place

If you had significant overlap and the PHI (main income protection) was for maximum benefit then no. If little or no overlap or you didnt have maximum PHI benefit then the sale was valid.

2. Have I been advised badly and therefore miss sold insurance I didn't need (at no point was I told I could get from an alternative source either)

You dont need to be told you can get it from elsewhere. Tied agents can sell only their own product. There is and never had been any requirement to tell you that you can buy elsewhere.

3. Is it worth me asking the question with HSBC.

Depends on whether it has been mis-sold or not. You need to look at the level of PHI protection and when the deferment period is to decide that as realistically, that is the only potential area of complaint that could lead to success here. The rest is irrelevant.

joncow75

Thanks for the quick reply. I need to get copies of my paperwork - although this is from well over 6 years ago HSBC may no longer have them (or find them myself through old paperwork I have filed away in bags!)

If there is no miss sell then no-problem. I had 2 further loans after the income protection policy was cancelled, both with PPI that I haven't looked at claiming as these were perfectly valid and relevant cover

joncow75

Just as a follow up to this. I sent the FOS letter into HSBC in Nov and a letter asking if the cover I had was necessary with the income protection and life insurance, plus the 6 months full and 6 months half pay I had at the time (shame I don't have it now!). Received a response yesterday from them with a "sorry you feel the need to complain" letter. They would not go into any detail of the complaint, whether they did think my complaint was justified, or whether they themselves had acted correctly. All a bit frustrating, however they did include a form that was an acceptance of all premiums paid to be repaid into a bank account of my choice. Total was well over £1k and i'm obviously very happy about that, just a shame they didn't really answer any of my questions put to them.

However a win is a win, and for the first time in months I will have some breathing space, plus an over-draft paid off.

dunstonh

The overlap on sick pay seems to have been the reason. They dont have to say but that is the logical reason.

roonaldo

its an auto uphold, they didnt review it

magpiecottage

roonaldo wrote: »

its an auto uphold, they didnt review it

That's my interpretation too. FOS fee £500, own time cost of investigating and arguing the toss with FOS at least as much again. Paying out is commercially cheaper.

dunstonh

That would follow on from another recent thread where they agreed to pay out an amount but the person disagreed with the amount. They wanted around £10k more. The bank then came back saying that they had looked at it closer and had decided it was not mis-sold. In that case, it was clear they had just auto-upheld to get rid of it but when the person wanted more, it must have taken it over some floor limit they have on redress amounts and when looked at closely they found nothing wrong.