Business Loan PPI - HSBC

ujm

In 2002 my company took out a business loan from HSBC.
At the time, I was the sole employee and director of the company, and the company had enough cash in it's account to cover the total loan - I wanted to keep the cashflow for growing the business.

I also had to give a personal guarantee to the bank in the form of a debenture on my house. The house at the time was mortgage free and jointly owned by myself and my wife.

I was strongly advised to take the PPI - it was always included on all the quotes and upon signing on the dotted line (this was done in person at the bank branch), I was discouraged against removing it. The policy was sold to the company with only myself (not my wife) as the insured person. The cover included disability and death only and was repaid in installmants over the period of the loan.

Sorry, if I'm being a bit dumb, but do I have grounds for claiming given:

1. I was strongly discouraged from removing the PPI
2. The bank also had a debenture on our house
3. The company had more than enough money in its account to cover the entire loan amount

Thanks.

di3004

ujm wrote: »

In 2002 my company took out a business loan from HSBC.
At the time, I was the sole employee and director of the company, and the company had enough cash in it's account to cover the total loan - I wanted to keep the cashflow for growing the business.

I also had to give a personal guarantee to the bank in the form of a debenture on my house. The house at the time was mortgage free and jointly owned by myself and my wife.

I was strongly advised to take the PPI - it was always included on all the quotes and upon signing on the dotted line (this was done in person at the bank branch), I was discouraged against removing it. The policy was sold to the company with only myself (not my wife) as the insured person. The cover included disability and death only and was repaid in installmants over the period of the loan.

Sorry, if I'm being a bit dumb, but do I have grounds for claiming given:

1. I was strongly discouraged from removing the PPI
2. The bank also had a debenture on our house
3. The company had more than enough money in its account to cover the entire loan amount

Thanks.

Hi and welcome

I would go for it with your reasons, give it a go.

For future reference as well, details of emails if required for CEO whenever.......

[EMAIL="chiefexecutivehsbcbank@hsbc.com"]chiefexecutivehsbcbank@hsbc.com[/EMAIL]


Anyway, was it actually sold and set up by HSBC?
If so you pursue them or whoever did set it up and sell it to you by completing a reclaim questionnaire as below step 3, make sure you keep a copy in case you need to refer back to it again at some point.

Good luck.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step3

ujm

Thanks Di. It was sold and setup by HSBC.
From the sounds of it, my grounds (in Step 2) would be:
Were you told it was compulsory?
Was very pushy when selling the product, so that you felt you could not say no.

I'll give this a go and keep you posted.

Thanks again.

dunstonh

I was strongly advised to take the PPI

Which seems like very good advice given the liability you were taking on.

I was strongly discouraged from removing the PPI

What you describe does not sound like PPI. PPi does not pay out on death.

Sorry, if I'm being a bit dumb, but do I have grounds for claiming given:

I was strongly discouraged from removing the PPI
The bank also had a debenture on our house
The company had more than enough money in its account to cover the entire loan amount

1 - no. You knew it was optional and they are allowed to encourage you to take it out.
2 - that increases the reasons for having it. Not reducing it.
3 - So, why did you need a loan if you had the cash? Why did the bank want the additional security?