ppi claim against the abbey national building society

dunstonh

Placida wrote: »

FOS don't agree

"...... the balancing act I undertake here is a finely balanced one between what HSBC has said and what Mrs Y has said. I am assisted in this by what HSBC’s sales application record (the only sale-specific document that HSBC has been able to produce) tells me about Mrs Y’s circumstances at the time. She was on a very low wage indeed; so low that for a person in her circumstances affordability would have been of the essence. So even though she only had the benefit of statutory sick pay in the event of being unable to work through sickness and had no other fallbacks, and even though the policy does appear to have provided a reasonable benefit, I find that for someone in Mrs Y’s very particular circumstances, it would not have been affordable."

Complaint upheld

I am surprised HSBC didnt challenge that one. Affordability is a consideration. However, clearly there was a financial need and the policy suitable. If you look at the wording carefully, it mentions "very particular circumstances" and emphasis that HSBC couldnt provide anything other than a sales application record which suggests a lack of documentation. I suspect this is more to do with HSBC not being able to show they verified affordability. Adviser arranged policies verify affordability. Non-advised rarely do (or are unable to and we know many get paid out because of missing, incomplete or just never recorded information)

roonaldo

Placida wrote: »

FOS don't agree

"...... the balancing act I undertake here is a finely balanced one between what HSBC has said and what Mrs Y has said. I am assisted in this by what HSBC’s sales application record (the only sale-specific document that HSBC has been able to produce) tells me about Mrs Y’s circumstances at the time. She was on a very low wage indeed; so low that for a person in her circumstances affordability would have been of the essence. So even though she only had the benefit of statutory sick pay in the event of being unable to work through sickness and had no other fallbacks, and even though the policy does appear to have provided a reasonable benefit, I find that for someone in Mrs Y’s very particular circumstances, it would not have been affordable."

Complaint upheld

this would be relevent and is a single premium ppi, which is added to the loan thus increasing the level of debt and repayment. many people took the loan in the first place to consolidate debt, not increase it back up again. along with its restrictive cancellation and lack of refund they are viewed not affordable.

the OP has a mortgage PPI policy, which is a monthly paid policy not added to the debt. if at any point if you thought it was unaffordable it can be cancelled at any time. its also not ppi for a loan but ppi for that is covering your house, where fos will often deem still practical to have even on top of sick pay.

cjguy71

Have got to say santander have been most helpful both in branch over the phone
I have sent an email as advised stating my complaint.With regards to havin no paperwork or account numbers they said its not a problem they can search using address & date of birth.so fingers crossed