Complaint upheld but no redress?!

hannahh_3

We've just had a letter from HSBC saying our complaint about PPI on four loans has been upheld.

All good, but then it gets interesting... They've made a redress offer for three of the loans but have said they will not offer us redress on the fourth because they are unable to make calculations as they don't have records going back far enough (it was a loan taken out in 2000 - we've already supplied them with a copy of the original loan agreement).

We spoke to HSBC on the phone and they confirmed this was the case - they are not prepared to offer any redress for that loan, even though they have admitted liability for mis-selling the PPI.

I would have thought that if they had enough evidence to judge that the loan PPI was mis-sold in the first place and have admitted liability for the mis-sell, they would have enough evidence to make an offer of redress?! Or at the very least a goodwill offer.

Obviously we'll take this to the Ombudsman, but I wondered if anyone else had had a similar response and what the eventual outcome was?

manama

Have you got bank statements from then? Mine show the loan going in and the insurance coming out......knew there was a reason for keeping them. Lol

dunstonh

Obviously we'll take this to the Ombudsman, but I wondered if anyone else had had a similar response and what the eventual outcome was?

The ombudsman will go on the basis of facts. If there is no factual information showing the amounts paid, they wont award an amount (based on others that have had similar situations).

roonaldo

Like what Dunstoph said, FOS cant award money when there is no evidence that you even paid it in the first place. The complaint has been upheld, which FOS will agree with.

You will need to show the bank statements showing the payments being made, that is the way forward. If you cant supply them, you are probably at a dead end.

amersall

roonaldo wrote: »

Like what Dunstoph said, FOS cant award money when there is no evidence that you even paid it in the first place. The complaint has been upheld, which FOS will agree with.

You will need to show the bank statements showing the payments being made, that is the way forward. If you cant supply them, you are probably at a dead end.

Bank statements only show the loan payment being made, they do not show PPI amount or payment.

hannahh_3

Thanks all for your help. Amersall is right - we have bank statements but they only show the combined loan/ppi payments and don't show the PPI as a separate payment. Unfortunately, we can't find any loan statements which would show the breakdown.

I would have thought that since the agreement shows the loan amount, PPI amount and term, and the bank statements show the payments, they have all the info they would need to be able to work it out. But they reckon not.

We'll still take it to the Ombudsman, not least because it's free and therefore worth a go, but am not holding out much hope!

magpiecottage

How was the PPI set up? Was it a monthly premium (in which case the bank is right and it probably cannot be calculated with certainty) or a single premium added to the loan (in which case it may be possible if the interest rate and the original main loan before the PPI was added are known).

marshallka

We had exactly the same thing with our bank. We had 4 loans with the bank and agreements for all 4. We were offered redress for 3 of them because they said the first one we took out they had no record or the amount we paid at settlement although they agreed we had actually taken the loan out. If you settle the loan early then you most likely get a rebate on the PPI and we could not state just how far into the loan we settled.... or the amount we settled at...we knew the loan had not ran its course because we took another out shortly afterwards......(most probably to include this loan too).

This was through the FOS and our adjudicator said that the bank would agree to redress our first loan IF we had records of the amount we settled at as they had not. We had not got this information, we only had the signed agreement so much the same as you. This loan was also the biggest amount and would have been the most in form of redress too...

Hope you get somewhere with this one though and certainly worth a try with FOS.