Hsbc essential ability cover for mortgages

Oyster_mama

Hi,
I am new to the forum and wanted to ask for advice on the hsbc Essential Ability Cover for Mortgages policy. I understand that it is not ppi but I believe I was misold this policy as outlined below.

I took out the policy in 2003 on a mortgage of £40,000 on a flat worth £100,000. I was a student at the time and had no income aside from teaching jobs that paid irregularly but my payments were very low and I was living with my partner in a house he owned so my outgoings were low. I was told I needed the policy otherwise the mortgage would be refused despite the £60,000 deposit.

I paid off the mortgage in 2005 but continued to make payments unaware until April 2014 that there was no point to them as hsbc in the meantime had changed the policy number and I just didn't check. The payments were for £13.75 a month and the policy would have run out in 2020. I have since cancelled it.

Any advice on whether I have a right to complain would be appreciated.

Thanks

dunstonh

I was told I needed the policy otherwise the mortgage would be refused despite the £60,000 deposit.

That was wrong but very few complaints succeed on allegations like that as there is rarely any evidence to support that allegation.

Any advice on whether I have a right to complain would be appreciated.

You have a right to complain about anything but apart from one unprovable allegation (which may be right or you could be making up or you could be mistaken on - thats the problem with unprovable allegations) there does not appear to be any solid complaint reason.

The policy is a permanent health insurance plan. It is not dependent on job. Housewives can have it for example. It is fully medically underwritten at point of sale and put in place under the regulated advice process which means there should be a very good audit trail which includes a factfind, needs analysis and reasons why letter. It is not linked to the mortgage.

Banks are rather scattergun in how they respond to complaints at times but based solely on what you have written, you cannot see a complaint being successful on the basis of an unprovable allegation assuming there are no other faults.