HSBC mortgage Life choice policy

Bel23

Hi all, I was wondering if anyone could help me. I took out a 3 year fixed rate mortgage with HSBC in 2010 - and I was told I would only be accepted if I took out Accident & Sickness choice, Decreasing trauma choice and Unemployment choice policies.

I was and am self-employed and so I did not need the Unemployment policy - but I was told it would include self-employed people. I didn't want any of the policies but, as I say, they said I had to have it in order to be given the mortgage.

I know this was silly but I had recently come out of a long term relationship so my head was all over the place, plus my ex had always sorted out all the financial aspects of life (I'm much more skilled at it these days!)

I wrote to HSBC to claim PIP but they say the policies are LifeChoice, not PIP.

So, is it worth me contacting the Ombudsman to pursue this, or are they correct that I won't be able to claim?

Thanks in advance, I hope I'll be sharing a good news story along with so many others on the forum!

dunstonh

I was and am self-employed and so I did not need the Unemployment policy

Why not? Unlike many credit card and loan PPI, most MPPI does cover the self employed.

I didn't want any of the policies but, as I say, they said I had to have it in order to be given the mortgage.

Was it the mortgage or the mortgage deal? Whilst the lending wont require the MPPI, there have been deals over the years that required a cross subsidy purchase. That is allowed.

I wrote to HSBC to claim PIP but they say the policies are LifeChoice, not PIP.

Which is correct. It is a life assurance policy with optional critical illness cover bolt on. Nothing to do with PPI.

So, is it worth me contacting the Ombudsman to pursue this, or are they correct that I won't be able to claim?

Your complaint is not logical at this stage. You are complaining about PPI but do not have PPI. Furthering that complaint to the FOS is not going to change that position.

I hope I'll be sharing a good news story along with so many others on the forum!

You are sharing a good news story. You were not mis-sold.

[Deleted User]

Bel23 wrote: »

I wrote to HSBC to claim PIP but they say the policies are LifeChoice, not PIP.

LifeChoice is Life and Critical Illness cover not Payment Protection Insurance (PPI). Unless you were immune to illness and immortal it's difficult to see how this insurance wasn't suitable for you.

You can't complain about PPI if you never had it.

cap27

I'm in a similar situation. I purchased a morgage from HSBC in February last year and whilkst slightly different in the fact that i certainly was not forced into purchasing additional critical and life insurance i was sold a policy for income protection. I was informed when i purchased (and the whole reason for purchasing) that it also included for reduindancy cover and would pay out for the full duration of the policy if i did not manage to get back to work, or numerous claims if i was later made redundant. Now i find myself in the difficult position of being made redundnat and HSBC are now telling me that my policy does not include income protection for redundnacy just sickness. Having spoken with their department in Bristol that holds the records, they have confirmed this to be the case, but upon question i found out that HSBC DID used to include this type of cover, but did not eleborate on why the cover stopped being offered. I know what i was told and belive this to be misrepresentation at the least so will be battling the big company's compliants department. If anybody has any information on when HSBC stopped offering redundnacy cover i would be very grateful.

dunstonh

I know what i was told and belive this to be misrepresentation at the least so will be battling the big company's compliants department.

The biggest problem you have is that income protection is different to PPI. It is underwritten at point of sale and you would have had a suitability report explaining the reasons why it was suitable. Also,the audit trail on a 2013 case should be very good. So, if there is no documentation to support your complaint then it is an easy rejection for them on that point. Do, you have any evidence to support your allegation?

Also, the complaint is a little ironic. You are effectively complaining that you want PPI. Everyone else on this forum says they dont want it.

Plus, the product you have is a superior product. Income protection (or permanent health insurance / PHI) is considered one of the most valuable insurance products someone can have. It PHI had been sold in place of PPI, then there wouldnt have been this PPI issue.

Given that it had been 5 years since HSBC offered the product, then it seems implausible that you were told that unemployment cover was included. I am not saying that you were not lied to and you are making it up. You may or may not be. However, the paperwork trail is highly unlikely to support your allegation and on balance of probabilities it is unlikely that a staff member of HSBC would say it is a product they have not offered for 5 years.

If anybody has any information on when HSBC stopped offering redundnacy cover i would be very grateful.

HSBC stopped making PPI available through its branches in 2007 and the rest of its business in 2008 (as confirmed on their website).

[Deleted User]

cap27 wrote: »

I know what i was told and belive this to be misrepresentation at the least so will be battling the big company's compliants department.

I can't see you getting anywhere with this, it's "hearsay" complaint for which you can provide no evidence. Certainly, the policy terms and conditions (which you should have checked carefully at the outset) will make no reference to cover which wasn't actually provided.

roonaldo

You were not mis-sold anything by them last year. Neither was the OP in 2010.

1, PPI was not sold
2, The sales process at HSBC is robust, compliance rules it.

Nice try