Reclaiming PPI on a still ongoing Flexiloan?

metalmunki

Hi all,

I've had a HSBC £2000 flexi-loan for about 10 years now. I've just never been in a position to pay it off, and I usually end up transferring money from it to my current account when times are tough. Since finding out about PPI, I've noticing that I have 'loan protection' on my statements going out occasionally along with my monthly repayments.

I certainly don't remember being asked about it when I originally signed for the loan (I think I was 19 at the time and originally got it for a holiday..I'm now 31), and I was in full-time employment at the time and paid hourly with no employee benefits of any kind. If I couldn't go to work, I didn't get paid put simply.

Obviously since then, I've been through varied employment, unemployed and even student situations.

I've looked at the FAQs on this site regarding PPI reclaims and I'm not sure where I stand regarding my exact circumstances, so thought I'd ask before downloading/printing/sending letters.

Is this something I can reclaim and what advice, if any, can you wonderful people give me?

Regards,

Mark.

foxgloves

Hi Metalmunki, I've been wondering something very similar. I paid off my HSBC Flexiloan finally about 3 years ago after just the sort of borrowing & re-borrowing from it that you describe. I'd had it for years. Firstly the limit was £500, then I went for an appointment with one of the bank's advisors & increased it to £1,500. I definitely coninued to pay £5-02 a month on top of the monthly repayments which were set at £60. Like you, I can't remember being asked if I wanted it, we had quite an in-depth look at my finances & she asked me about other debts/overdraft/income & had my statements & personal details, etc, in front of her. I know £5-02 a month doesn't sound like a lot, but I did have the loan for years as it was one you could keep borrowing from yourself by account transfer, & of course small sums add up! With hindsight, I didn't need this insurance. I worked for local government so was elligible for redundancy pay if I'd lost my job, plus sick pay, etc. The bank had my employment details for my salary so knew I was secure on that front. Also, bearing in mind I was a home-owner, it would have been unlikely that I'd have been unable to pay off maximum of £1,500. As far as I can remember it was put to me as 'something you just had', so I didn't argue. I no longer have the paperwork relevant to this loan but am still considering approaching the bank as they should have records going back 6 years. I'd be interested if there's anyone out there who has successfully got the insurance money back from an HSBC Flexiloan. Good luck with yours if you decide to claim.

[Deleted User]

Plenty of success stories with HSBC Flexiloans
Go for it!
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

alfgeorge

I've had a Flexiloan with HSBC (since 1991), and a 'Save & Borrow' account prior to this with Midland Bank going back to the early 1980's. I have recently bit the bullet and decided to enquire about claiming back mis-sold PPI on this account. HSBC have offered a refund of six years payments plus 8% compensation. As this is all the information the bank holds.
I do hold proof of PPI payments going back to 2002; does anyone out there think it worth my while persuing this with HSBC?

I also find it quite shocking that these financial institutions alledgedly hold no information regarding PPI payments going back past 6 years!

Surely any information regarding an insurance policy should be retained whilst that policy is still open?

gramochroi

I also have had flexiloans with HSBC going back to the mid 90s. Wrote to them originally in March stating my reasons for mis sale. Got a first offer for the year 2004-05 as they said they had no records going back any further. Was lucky enough to find statements and loan agreements going back to 1995 so sent them off and am now awaiting a revised offer. Good luck!!

foxgloves

I posted off my PPI claim form to HSBC yesterday regarding my Flexiloan. I don't bank with HSBC anymore & it took me a while to be able to pull the necessary details together, but I found what I needed & feel I made a good case. I fall into the category of having been sold an insurance policy I had no need of, as I was well covered though my employer & I wasn't asked about this at the time of selling, despite the fact that my job situation came up in the meeting. I have requested repayment of my £5.02 a month policy from 2000 to 2009 when I paid off the loan. It's very convenient, isn't it, that they only keep records for 6 years.....I've sent them a copy of a document from further back than that. Not sure how hopeful I feel, but certainly going to persevere with it.

[Deleted User]

foxgloves wrote: »

I posted off my PPI claim form to HSBC yesterday regarding my Flexiloan.

Can I ask why you left it three months from when you posted about it in April?

foxgloves wrote: »

I fall into the category of having been sold an insurance policy I had no need of, as I was well covered though my employer & I wasn't asked about this at the time of selling, despite the fact that my job situation came up in the meeting. I have requested repayment of my £5.02 a month policy from 2000 to 2009 when I paid off the loan. It's very convenient, isn't it, that they only keep records for 6 years.....I've sent them a copy of a document from further back than that. Not sure how hopeful I feel, but certainly going to persevere with it.

Good luck with this.
The six year rule isn't for the convenience of Banks dealing with PPI complaints regarding old loans, it really is an FSA recommendation that records be deleted after six years if they are conceivably no longer required by the lender.
Luckily 2009 is within six years, but you can be sure that HSBC will want statements to prove you paid PPI for the period earlier than this even if they uphold your complaint.