HSBC Loan Advice please

smartdoodle

Hello All

I hope this is in the correct place. I'm just getting my head around all the PPI stuff and am looking to try to make a claim. I just wanted a bit of advice from you guys who obviously know a lot more about this than I do!

I took out a loan for £2000 back in 2007, I was told I had to have PPI otherwise would not get the loan. The loan was actually to pay for a car.

However I didn't want nor need the PPI as I was in stable work, hubby was in stable work and we did have savings that would have covered the loan. Also lived at home with parents who were all in stable jobs etc. At the time we were saving to buy our first house so didn't want to touch the savings if possible.

We decided to pay off the loan to put us in a better position when applying for a mortgage (thought having no loans etc would make us look better applicants) so loan was paid off about 5 months after taking it out.

I don;t actually have any evidence showing that I was told no ppi no loan, so would I still have a case or is that just a weak excuse?

Sorry for the ramble, grateful for any help given

Sarros

Hi

The reason's you are giving are quite weak and based on hearsay only. If the PPI was added to your loan as a single premium (effectively a loan on top of a loan) then that may be your stronger complaint.

Also as you paid the loan of early then you would probably have got a rebate on the PPI which would possibly have been incorporated into the settlement figure.

smartdoodle

Thanks for your reply.

I thought it may be a little weak with reading other peoples threads.

I'll check my paper work and settlement details, I do believe it was one off payment at the beginning. If I had got part of that back when I settled the loan would that mean I wouldn't get anywhere with the claim as I'd already had part of it back?

Sorry if that sounds really stupid, jsut trying to figure if I should do the claim or indeed entitled to make the claim.

Sarros

Hi

I am no expert and there are far more qualified people on this forum who will be able to advise, however based on my own experience my understanding is if your complaint is upheld then you should be put back to the position you were in if your loan was taken out with no PPI added. Any redress I think would be made up from (if it was single premium) the full PPI premium plus interest minus any rebate you received for early settlement (which probably won't be much as you settled after 5 months) plus howver much a month you were paying towards the PPI per month (again for single premium this would have been included in your monthly loan payment).

As I mentioned above there are some far more qualified people on here who will be able to advise so hopefully they will correct me if I am misleading you.

smartdoodle

Thanks so much for your help. I'll go ahead and fill in the forms as it's only the cost of a stamp in the end!
If I get something great but if not it's not the end of the world.

Really appreciate your help with this.

-taff

If it's upheld you should get back 5 months of PPI, plus any interest that was not refunded, plus 8%, so even if it's 20 quid, it's worth it because that's more than a stamp and some ink [depending on your printer that is....]

kittsbud

Also, HSBC are now admitting they sold PPI to people without explaining what would happen if they paid up early, or restarted their loans and that no pro rata refund would be given. If you paid up as early as you did, and you can prove you had savings anyway, I'd go for it! I've just had 2 claims upheld by the HSBC on the grounds I paid up early, and was never informed of their clauses in the policy if I did so! ( I have all my documents and its not even in my policy T&C and booklet!!!)

Mind you, they've lost my acceptance form three times now, so I still haven't gotten my cash yet...!