HSBC Loan PPI claim - Help & Advice needed - Newbie

seawings

Hi all,

Some 7 Years ago I took out a £25K loan with HSBC - I was earning good money, long-term steady job at senior management level, and I wanted to re-modernise my house(new bathroom, new boiler system, extension (new family member) etc)

Having been with the Midland from birth, then the HSBC I was a good customer of theirs. However, when I accepted the loan I found that I was informed that I would 'have' to have Employment Protection Insurance (PPI) as it would make my loan come through quicker and I 'would be better-off' with it.

Well, I took out the loan and unfortunately was made redundant twice in the same 12 month period some 4 years later. I never claimed using the PPI.

I subsequently defaulted on the loan (much to my shame and disgust I might add, being an ethical person) and eventually the debt was 'sold off' by the HSBC to a Debt Recovery company based in the Midlands. I now pay them a small sum each month, and will continue to do so. The HSBC confirmed their sale and transfer of this debt and we all moved on.

I looked at the original loan agreement form last night and was horified to see that the PPI value was £11,500..!

My question is, (1) can I make a claim for the refund of PPI and (2) I have heard that should a refund be granted to me, the Debt Company would be the one to receive it, not me, as I would hjave to state on the application form that the loan was defaulted. Is that correct?

I would also say that throughout the period of the redundancies, despite asking, I never ereceived one-jot of assistance from the HSBC branch where my account was located. Nothing. They simply didn't want to know.

One day I will clear this debt I owe but I would very much like to put any refund to more practical pressing use such as a new house boiler system given the opportunity......

Any advice gratefully received.

Many thanks,

Seawings

[Deleted User]

seawings wrote: »

can I make a claim for the refund of PPI?.... I have heard that should a refund be granted to me, the Debt Company would be the one to receive it, not me, as I would have to state on the application form that the loan was defaulted. Is that correct?

You can make a claim if you have valid complaint reasons. Was the insurance "front-loaded" onto the loan? In other words, was the PPI policy added to the loan amount so that you paid extra interest? This is the most upheld complaint.
As for the default position, I'm afraid you are correct that the Bank will retain any redress awarded. The good news is that it will help pay off your debt that much sooner, the bad news is no new boiler!

shop-to-drop

How come you didn't make a claim when you were made redundant?

[Deleted User]

shop-to-drop wrote: »

How come you didn't make a claim when you were made redundant?

Yes, if the answer is the OP COULDN'T have claimed rather than voluntarily chose not to, then this is would be another valid complaint reason. Did the OP have a pre-existing medical condition, for example?

PPI_claims_Investigator

The guy has a loan agreement, complaining about the single premium policy won't get you anything back.

I'd need to know the exact date you took the loan out to give you better advice on what points you should be highlighting in your complaint letter/telephone call...

I'd concentrate on why you weren't able to claim, or didn't claim.

with regards to the debt company receiving it, hmm not usually unless you are in a IVA.. The bank will usually write off what you owe and issue you with a check for the difference.

frenchy28

Moneyineptitude wrote: »

You can make a claim if you have valid complaint reasons. Was the insurance "front-loaded" onto the loan? In other words, was the PPI policy added to the loan amount so that you paid extra interest? This is the most upheld complaint.
As for the default position, I'm afraid you are correct that the Bank will retain any redress awarded. The good news is that it will help pay off your debt that much sooner, the bad news is no new boiler!

Hi moneyineptitude

Is front loaded PPI a reason for mis-selling and why?

PPI_claims_Investigator

frenchy28 wrote: »

Hi moneyineptitude

Is front loaded PPI a reason for mis-selling and why?

it can be if there were strong indications that you would refinace. i.e a history of debt consolidation, or stating that the loan was for debt consolidation.

What a lot of people don't realise is that over the past 12 Months the banks have been on a major recruitment drive, and training up good case handlers. In the past alot of people have been getting auto-paid out as the bank has 12 weeks from the date they receive the initial complaint letter to come up with a final response.

As you can imagine the banks are over loaded with complaints so alot of cases in the past have just been paid out regardless of wether it was mis-sold or not.

This is no longer the case

seawings

Moneyineptitude wrote: »

You can make a claim if you have valid complaint reasons. Was the insurance "front-loaded" onto the loan? In other words, was the PPI policy added to the loan amount so that you paid extra interest? This is the most upheld complaint.
As for the default position, I'm afraid you are correct that the Bank will retain any redress awarded. The good news is that it will help pay off your debt that much sooner, the bad news is no new boiler!

Yes, it was all part of the loan and the repayments. It was, as I recall, a very 'slick' selling job - I remember that afternoon very well.

The bank now have nothing to do with it as it's be sold on, so surely they will just be dealing with myself direct? No?

seawings

shop-to-drop wrote: »

How come you didn't make a claim when you were made redundant?

Do you know what, I just don't know......I think nowadays that I simply forgot it was there.

Having had redundancy come up out of the blue, it is one of the most devastaing events I have ever been through with my family and to have it occur twice in 5 months was depressing beyond belief; I wasn't thinking right at the time, it was all-to overwhelming......

Not all of us are a 'savvy' as everyone would like to be........

seawings

PPI_claims_Investigator wrote: »

The guy has a loan agreement, complaining about the single premium policy won't get you anything back.

I'd need to know the exact date you took the loan out to give you better advice on what points you should be highlighting in your complaint letter/telephone call...

I'd concentrate on why you weren't able to claim, or didn't claim.

with regards to the debt company receiving it, hmm not usually unless you are in a IVA.. The bank will usually write off what you owe and issue you with a check for the difference.

As I see it, the HSBC have absolved themselves from the outstanding debt and have absolutely no further contact with me. Therefore, if they did pay out on PPI, they would pay directly to myself would'nt they?

Not trying to circumvent anyone I owe to, you understand..........

[Deleted User]

seawings wrote: »

As I see it, the HSBC have absolved themselves from the outstanding debt and have absolutely no further contact with me. Therefore, if they did pay out on PPI, they would pay directly to myself would'nt they?

It doesn't work that way. You owed money to the Bank and they are currently using a debt agent to recover it. HSBC have not "absolved" themselves of it at all.
If you win redress, you'll get nothing personally unless the amount exceeds what you still owe.