Reclaim Success.......can you do it twice though?!?

daztrocks

Hi All

I have a personal loan with HSBC on which I pay £60/month PPI and have 19 payments remaining. I recently was successful with a PPI refund claim and received £11,400 :rotfl:!!

Having used the money to pay off some of my wife's debt and a card of my own, I called HSBC telephone banking to get a loan settlement figure. This was a lot higher than I thought it would be without the PPI content so I made an appointment to see the HSBC Branch Manager.

He basically told me that he could re-structure my loan at the same rate as I first took it, and over the same remaining term (19 months) but when he calculated my re-payments they were almost the same as I pay now (£265 month) even though £60 of that is PPI. I queried this and he gave some rubbish reason about interest that you have to pay for finishing the loan early etc. I said I'm not asking to finish early, I just want to continue paying without PPI, i.e. approx £200/month for 19 months, apparently it is not that easy and you HAVE to start a new loan and get stung for the interest charges for closing your old loan.

I said to the guy that if this was the case I might as well carry on paying £265/month INCLUDING PPI then when its paid in 19 months submit a further PPI claim for these additional months. He told me I would not be able to claim again. IS THIS TRUE?

I am trying to think of my best option, and wondered if anyone could give me any advice?

THANKS ALL!! :T

dunstonh

If they repay the PPI premium to you directly then the loan is still increased by the amount of the PPI that was paid.

e.g. loan of £10,000 with £2000 PPI added is £12,000 borrowed. If they refund £2500 as PPI plus interest to you directly and you use that money for other things then the loan stays at £12,000.

If they paid you directly AND took it off the loan that would be a double payment. So, what you are asking for is not logical.

He told me I would not be able to claim again. IS THIS TRUE?

He is correct. The PPI premium has effectively turned into an additional amount borrowed.

peterod1

I too had a running loan with HSBC and claimed the PPI. They restructured the loan without PPI using the existing terms and refunded the PP already paid. You should not be paying any penalties for closing your existing loan early, I think they are trying to rip you off. I would suggest you get it in writing and inform HSBC that you need it in writing to send to the ombudsman this should sort them out.

dunstonh

You should not be paying any penalties for closing your existing loan early, I think they are trying to rip you off.

Please explain how you think that is a rip off?

What they are doing is logical. What the OP wants appears to be a double refund (money in their hand AND having the loan reduced). You only get one or the other.

peterod1

Per the original post

" I queried this and he gave some rubbish reason about interest that you have to pay for finishing the loan early etc."

This is the rip off!

The bank would only refund the payments for the PPI already paid, so he is only receiving the cash he was incorrectly charged. The loan has not increased. However the existing payments still include an element of PPI which needs to be corrected. HSBC acheive this by cancelling existing loan and creating new loan with same % and same number of repayments due the repayments should be lower by the PPI element, he should no way be penalised for closing the existing loan.