My claim vs hsbc

spunkeyrich

just thought i would pop this on for other people regarding my dispute with a bank and ppi insurance. maybe useful to someone or other :-)

Dear Sir/Madame,

COMPLAINT
In October 2003 I took out a loan with your company. The loan was for £22,000 plus charge for credit @ 8.9 % amounting to £8456.80. This totalled £30,465.80.
I also took out a credit Protection Insurance which amounted to £7093.39 (including Insurance Premium Tax) Plus charge for Credit @ 8.9% amounting to £2725.40. This totalled £9815.40.
Therefore the total loan amounted to £40,275.59.
Seven months later I paid the loan off and a refund of the Credit Protection Insurance was calculated at 1 May 2004 of £5,966.00. This makes a difference of £3849.40 between the amount including tax and interest of £9815.40 and the rebate of £5,966.00. I had also paid the Premium of £102.25 per month for 7 months.
Please advise me if these figures are incorrect by sending to me supporting documentation, including any notes, recorded telephone conversations, letters and agreements. I have enclosed a fee of £10.00 which is the maxium that is chargeable under the Data protection Act, I also understand under the Act that I should recieve the Documents within 40 days of this letter. However, if you agree to the figure above of £3849.40 plus interest,which is in dispute by me, then please let me know within 14 days.
The reason of this letter is that I beleive I was mis-sold the policy in a number of ways.
1/ That as the Bank knew of my intention of selling my home to repay the loan within months rather than years from the outset. In fact after the loan interview I then had an interview from your mortagage adviser to see how much I could borrow after I redeemed the debt including the PPI insurance. I was advised it best to re apply after some months had passed to be considered for further consideration.
2/ I felt pressurised to take out the Credit Protection Insurance otherwise I may not have been successfull in obtaining the loan. Please provide any alternative illustration I was offered as an alternative to the illustration given excluding the Credit Protection Insurance.
3/ At no time was I advised to compare the benefits of my new employment as a ..............regarding unemployment, sickness, death and disability for which every individual circumstances must be taken into account.
4/ The use of the Rule 78 to calculate a refund has now been shown to be unfair and unreasonable to the customer and banks are no longer able to use this rule in rebates.
5/ On my policy document there is no mention of a previous claim which I discussed, of a disabilty which I claimed for on a previous insurance though HSBC which may have made a claim invalid. If this is not the case then please provide evidence.
In conclusion I submit that I was miss-sold the Credit Protection Insurance as the bank representative knew of my intention of redemeeming the loan early, He did not discuss or offer any alternative therefore indicating that the insurance was compulsory, or take into account my new employment, or advise me of the early penalty charge, for which I would have then have declined the Insurance in question. I feel the Adviser was motivated to sell me the Policy due to financial gain for himself and/or the Bank and did not take into account my personal circumstances.
I am asking from you to rebate me the sum of £3849.40 plus interest. I look forward to your response to this letter within 14 days to inform me of the action you will be taking.


ps. waiting for a response from them at present. will let you know
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