Missold Life insurance HSBC

Deltafoxtrot

Hi

Does anyone know if you can claim back life insurance. My mum and dad took out a mortgage with HSBC and were told by them that there application would only be accepted if they had life insurance.

dunstonh

Does anyone know if you can claim back life insurance.

Only if it has been mis-sold.

My mum and dad took out a mortgage with HSBC and were told by them that there application would only be accepted if they had life insurance.

Just about the weakest complaint reason you can get and one that rarely succeeds. Its a he said/she said scenario. Your parents have no evidence to support that allegation but HSBC will have a factfind, needs analysis and report showing that they need it.

Seeing as most people take out life assurance with a mortgage. It is highly unlikely a complaint would succeed for a married couple.

Help_Needed_3

jason2704...... Have you received any further from Santander. I too am waiting for Santander to source archive files. I was speaking to someone this morning who told me that she will phone me back next week re my claim.

WETHINK

Currently Ombudsman are not treating Life Assurance as PPI but if you review the definition of PPI as per one of my posts, if you have evidence that Life Assurance was required to Sanction borrowing it will strength case.

Will know in a few days from Ombudsman Legals if they interpret the FSA definition of PPI the same way we do in that when there is evidence that a Life Assurance policy was required to sanction and would payout in the event of death to cover any outstanding balance.

Check the terms of the policy as you might find that the Life Policy was actually assigned to the Bank as first call on any claim would be paid to the Bank. If you do find the policy was assigned to the Bank, this should be evidence enough that it was a Bank requirement as anyone taking out Life Policy independently would not assigne the policy to the Bank

magpiecottage

WETHINK wrote: »

Currently Ombudsman are not treating Life Assurance as PPI

That might be because it is not.

if you review the definition of PPI as per one of my posts

I think to OED is probably a higher authority when it comes to definitions.

if you have evidence that Life Assurance was required to Sanction borrowing it will strength case

On the contrary, if the evidence points to life over being required then it indicates that no missale took place

Check the terms of the policy as you might find that the Life Policy was actually assigned to the Bank as first call on any claim would be paid to the Bank. If you do find the policy was assigned to the Bank, this should be evidence enough that it was a Bank requirement as anyone taking out Life Policy independently would not assigne the policy to the Bank

The policy itself will not include an assignment and in recent years lenders have stopped insisting on one because it adds cost.

Historically the High Street banks did insist on life cover and even if they did not, as DunstonH says, there is a clear need for it.

dunstonh

urrently Ombudsman are not treating Life Assurance as PPI but if you review the definition of PPI as per one of my posts, if you have evidence that Life Assurance was required to Sanction borrowing it will strength case.

PPI is short term insurance offered by general insurance companies. Life assurance is issued by life assurance companies. There is nothing similar in the product type and they are issued by different types of insurer. It would be totally illogical to class life assurance as PPI.

Check the terms of the policy as you might find that the Life Policy was actually assigned to the Bank as first call on any claim would be paid to the Bank.

If it is an old case which was assigned then that helps the bank as historically lenders did insist upon life assurance. Where that was the case, it is allowed and no rule breach has taken place. Policies the bank required in that era were assigned. However, assignment typically ended by the early to mid 90s.