PPI, loan ad bank charges

sam1craven

Hi
Im new to the site and just wondered if any1 could read my thread and advise me if whether or not I have a case against my bank.

So back in 2007 I got a flexiloan of £1500, credit card £500 and ppi on both of these. When I went into the bank I specifically asked if there was an insurance policy I could take out (just in case) he advised me of ppi and as at that time I was planning a baby for the following year (better to be prepared) I asked if I was covered for unemployment due to maternity, he told me yes! So I took the loan thinking I was safe and covered. Well anyway after paying it for about 10 months I fell pregnant and then left on maternity leave. During this time me and my partner separated and I moved closer to my mum, in another area, meaning I couldn't return to my original job after maternity finished so I went onto income support/single mum. After attempting to keep up with payments for my loan (I paid my credit card in full by this time) I started struggling for money as I would get charges for not been able to pay my loan so tried to claim on my ppi policy but was told that I couldn't due to the reason I became unemployed MATERNITY. however they urged me to continue paying the policy as I had a while to go on my loan and may get another job in the meantime (3 years at least as it was an overdraft type loan which meant I could take repayments back minus the interest). At this time tho I wasn't aware of the ppi mis selling scandal.

So I struggled on for the next 4 years trying to make the loan go down and also still paying ppi. id take the money back from my loan cos id find myself skint all the time. In September 2012 I was informed of the ppi scandal and decided to write to my bank about it. they accepted liability and gave me a redress of £469 plus 8% interest. Nothing for the credit card because id paid it off so long ago id forgot I had it on this also. I accepted as this was more than what I paid anyway.

Anyway my situation now im still paying the loan and still get charged every month for going overdrawn because of my loan repayment. In 2008/9 charges were 10%of my yearly income, which would not have happened if I was able to claim on my insurance. They are currently 5% of yearly income.

So finally to my point was this loan mis sold to me as well as the ppi, as I specifically asked for ppi but wasnt covered. I wouldn't have taken out the loan if id have known I was being lied to and also can I reclaim on charges that I incurred from this loan sending my account overdrawn which created reoccurring charges every month. is it right that they can profit from charges and interest on a loan that I believe I was mis sold. im in extreme financial hardship and they are well aware of this.
please tell me what u think
Thanks in advance

_Andy_

"So finally to my point was this loan mis sold to me".

No.

sam1craven

can you tell me why/how you have come to that conclusion and any advice on the charges etc.

dunstonh

I asked if I was covered for unemployment due to maternity, he told me yes!

Technically that is correct. Although it is unlikely to be an event that is going to occur as employers cannot make you redundant due to being pregnant.

After attempting to keep up with payments for my loan (I paid my credit card in full by this time) I started struggling for money as I would get charges for not been able to pay my loan so tried to claim on my ppi policy but was told that I couldn't due to the reason I became unemployed MATERNITY.

You were not made redundant. You chose to stop work voluntarily. So, you would not be covered.

So I struggled on for the next 4 years trying to make the loan go down and also still paying ppi. id take the money back from my loan cos id find myself skint all the time. In September 2012 I was informed of the ppi scandal and decided to write to my bank about it. they accepted liability and gave me a redress of £469 plus 8% interest. Nothing for the credit card because id paid it off so long ago id forgot I had it on this also. I accepted as this was more than what I paid anyway.

It is not common for a PPI redress to accept liability when paying out. Normally they are goodwill gestures (especially on small refunds like yours). Check your wording on the letter again. It is important as it would affect the rest of what you are asking. My gut feeling would be that it was an auto payout given the small amount and positioned as a goodwill gesture. I could be wrong but check your letter and see if it mentions goodwill and if they specifically accept liability.

I wouldn't have taken out the loan if id have known I was being lied to

You were not lied to. You were given technically correct information. You just interpreted it the wrong way.

was this loan mis sold to me as well as the ppi,

No. It is unrealistic and even if they had accepted liability on the PPI and it wasnt a goodwill offer, it would be hard for you to prove that.

nd also can I reclaim on charges that I incurred from this loan sending my account overdrawn which created reoccurring charges every month. is it right that they can profit from charges and interest on a loan that I believe I was mis sold. im in extreme financial hardship and they are well aware of this.

Yes they can profit from lending you money. However, if you are in financial hardship you need to make them aware of this. They will decide if they agree with you and come up with a solution going forward. This may be a combination of things, such as no charges for the next x number of months and/or a refund of £x of past charges. You need to give them a budget analysis and details of the loans, utilities etc that you are in arrears with or have defaulted on. You must make sure you avoid any wording that says "unfair" or similar and make it clear that you are making a request under financial hardship criteria.

sam1craven

"I asked if I was covered for unemployment due to maternity, he told me yes!"
Technically that's not correct tho is it, as I wasn't covered for it. I was lied to. As u said its "unlikely that you will be made redundant due to maternity" this is due to the law and tribunals etc. I fail to see how I misunderstood what was being said to me as I explained my situation to him. I didn't claim when I was on maternity as I thought this still classed as employment but when I went onto benefits I was unemployed. What was my reason for unemployment then?

sam1craven

and also I cant see how it was voluntarily when I couldn't return to my job, that wasn't through choice!

sam1craven

They did accept liability and apologised, just looked at my letter. there was no ention of a goodwill gesture just a refund

antrobus

sam1craven wrote: »

... What was my reason for unemployment then?

According to what you have told us;

sam1craven wrote: »

... During this time me and my partner separated and I moved closer to my mum, in another area, meaning I couldn't return to my original job after maternity finished so I went onto income support/single mum....

I don't think you can insure yourself against the consequences of relationship breakdown.

sam1craven

no I thought I was insuring myself for unemployment, I wasn't aware of the exclusions hence the reason they accepted liability, in fact I was lied to about the exclusions when I asked the specifics of what I was covered for. I wasn't told that unemployment was only classed as redundancy or sickness.

antrobus

sam1craven wrote: »

no I thought I was insuring myself for unemployment, I wasn't aware of the exclusions hence the reason they accepted liability, in fact I was lied to about the exclusions when I asked the specifics of what I was covered for. I wasn't told that unemployment was only classed as redundancy or sickness.

You asked whether or not you were "covered for unemployment due to maternity". Irrespective of whether or not the answer you received to that question was correct or not, you became unemployed because you split up with your partner and decided to move closer to your mum.

You can insure your house against fire, but you're not covered if you set the fire yourself.

sam1craven

I split up with my partner whilst on maternity, I was on maternity for 4 months after that. Then went onto benefits. At what point am I classed as unemployed then? 5 months into maternity leave?? if I had split with my partner a month before going on maternity leave, what would be my reason for unemployment then? And if the information given to me by HSBC when getting the ppi was correct then why would they accept liability.