PPI FAQs discussion thread

dunstonh

When a cc company recieves your complaint, are they required to cancel the PPI straight away?

No.

What if your complaint is rejected because you make the mistake of mixing up the product? (example)

Is it worth calling them and getting this cancelled and charge refunded, or wait out the claim?

Either will be fine.

how can i find out if i have ppi, will i need ppi on a mortgage?

Do you have a monthly payment going out to an insurance company?
Even if you do, what would then be your reason for complaint?

Mortgage PPI has far fewer complaints and a lower upheld rate. He may have been mis-sold but he may have got lucky. e.g. Halifax until recently were auto paying out on MPPI without even checking if there was a mis-sale or not. Some lenders were doing the same on smaller value complaints to clear backlogs or just as it was cheaper to get rid of it. Just because you have insurance, does not mean you were mis-sold.

normalpeopleworryme

I was sold PPI twice for two different loans, 1 car loan by a car dealership, 1 mortgage by morgage advisor.
My question is for both - do I complain to the BANK/ insurers (that is capitial bank plc in case of car) OR to the sellers - that is the car salesman/ mortgage advisor...?

dunstonh

do I complain to the BANK/ insurers (that is capitial bank plc in case of car) OR to the sellers

The sellers.

Remember that there is nothing wrong with having PPI. The issue is whether it was sold correctly or not. Loans are quite easy to complain about but mortgage is much harder.

normalpeopleworryme

So I approach the car dealership in the first instance?

kikipot

Can CPI be classed as PPI?

doctordunc

Hope you can help. I took out a career development loan from HSBC many years ago now (perhaps 1997?) and taking out "life assurance" was a condition of the loan. My recollection is that it had to be the specific policy I was offered from HSBC, although obviously it was a long time ago and I wasn't especially financially savvy at the time. It was to pay tuition fees for a Ph.D

In the end, I won a scholarship so some of the loan could be repaid very quickly, and it was all repaid within five or six years. I finally noticed that I was still paying (approx. a tenner a month) in life assurance some time last year and cancelled the direct debit. I was "sold" the policy (it wasn't actually optional) on the basis that it would cover me not only if I died but if I were prevented from working through injury or long-term sickness, etc.

I suppose I have two concerns with it: a) should I have been made to take it out in the first place? (I imagine it's a tricky one, because they didn't have to give me the loan, I had no income at the time at all, and it was essentially unsecured, although I think my parents might have been dragged into it in some way regarding security - wish I still had the paperwork!!); b) I must have paid HSBC getting on for £1000 after the loan was repaid - does that just count as my stupidity, or have I any hope of reclaiming it?

Don't know if I have a claim; don't know if it counts as PPI? Please help!!

Duncan

dunstonh

I took out a career development loan from HSBC many years ago now (perhaps 1997?) and taking out "life assurance" was a condition of the loan.

Quite normal for that period. Indeed, you still see it happen sometimes today. Nothing wrong with that.

My recollection is that it had to be the specific policy I was offered from HSBC

Again, normal for the 90s. The requirement for them to allow you to pick provider didnt happen until later. However, even then, they were under no rules to let you know you could pick your own provider.

I was "sold" the policy (it wasn't actually optional) on the basis that it would cover me not only if I died but if I were prevented from working through injury or long-term sickness, etc.

That is unlikely and the documentary evidence is unlikely to support that. Do, you have any documentary evidence to back that allegation up? Bank sold life assurance would have had a factfind, needs analysis and report. I really think it is unlikely that a qualified adviser (even one with a salesforce) would document a life assurance policy as covering you for accident and sickness. That is unless it wasnt a life assurance policy but a PHI policy or a policy that has multiple segments and included life and PHI.

a) should I have been made to take it out in the first place? (I imagine it's a tricky one, because they didn't have to give me the loan, I had no income at the time at all, and it was essentially unsecured, although I think my parents might have been dragged into it in some way regarding security - wish I still had the paperwork!!);

two responses here:
1 - lenders are allowed to insist on insurance as security for a debt. Nothing wrong with that.
2 - if the lender told you that you had to have insurance when you didnt then that is wrong. However, it is virtually impossible to prove that.

b) I must have paid HSBC getting on for £1000 after the loan was repaid - does that just count as my stupidity, or have I any hope of reclaiming it?

it doesnt make it mis-sold. You should have cancelled it afterwards. The fact it was monthly payment confirms it was set up correctly (monthly premiums are good. Single premium added to loan is bad). However, some banks may offer a goodwill payment to cover the premiums after the loan was repaid if you ask them.

don't know if it counts as PPI?

Neither PHI or life assurance are PPI.

If you were single and had no dependants at point of sale and it was life assurance and the lender didnt insist on life assurance then you would have grounds for complaint then.

doctordunc

It definitely wasn't just cover for if I died - I can't remember if the terminology used was "critical illness" or "chronic illness" but definitely one or the other. It was marked on my bank statement as "HSBC Life"

Anyway - sounds like I haven't got much in the way of grounds for a claim... I will write and see if I can get any goodwill repayment re: the money that was paid out after the loan was repaid, as it is a tad galling (especially as I'm surrounded by people getting lots of money back on fairly spurious PPI claims!!!)

dunstonh

It definitely wasn't just cover for if I died - I can't remember if the terminology used was "critical illness" or "chronic illness" but definitely one or the other. It was marked on my bank statement as "HSBC Life"

Critical illness is an optional add on with most life assurance plans. It is not sickness/accident. For the under 40s, it is often a near free option (or life assurance is if vice versa) as the cost of having both is often just pennies different than having one.

As CI was included, this actually makes it harder for your goodwill request to succeed. By all means ask, but dont go with expectation.

it is a tad galling (especially as I'm surrounded by people getting lots of money back on fairly spurious PPI claims!!!)

Main reason with PPI is clearing backlogs and auto paying out or small amounts which are cheaper to settle than argue or lack of documentation. With life assurance/CI the documentation trail should be much stronger as an FSA regulated individual would have done these. Unlike PPI which is mostly dont by unregulated individuals.

priti8

I was sold PPI on a loan for £15,000 and the bank have agreed to pay the PPI plus interest as a settlement. The PPI is £1,200 approx, this seems low based on the calcalution of approx 15%. Could this be because i paid the loan back in 11 months which is much earlier than the term agreed.