HSBC letter regarding PPI

darkminos

Hi!

I have recently received two letters about PPI from HSBC where they state that they are concerned I was mis-sold.

The letter states the following:

"We have received a number of complaints about this insurance and therefore carried out a review to identify whether there were any problems with the way we sold the insurance, any inappropriate practice or procedures that may have impacted customers. When advertising on a sale of PPI we were required to ensure the policy was suitable for you, taking into account all relevant factors. We believe you may have been affected by the following issues,

We may not have established whether you were likely to repay or re-finance your loan before the end of the loan term. The PPI product you had did not give you a pro-rata refund if you paid off the loan early. This means, for example, that if you cancelled half way through you would get back less than half of the premiums you paid. If we had discussed this with you, we may not have recommended you take out this product.

If your loan was taken to repay existing debts we may not have considered whether the cost of cover or policy terms made it appropriate to recommend that you purchase PPI. If we discussed this with you, we may not have recommended you take out this product."

One of the loans was taken out online, which makes me wonder how the above statement (or "suspicion") can apply as mis-selling, as I assume all the info would have been available online??

Did anyone receive a similar letter? What is the appropriate action to this? I have called HSBC and said I believe I might have been affected by PPI mis-selling (as per letters) and if they can start an investigation into my file with regards to all PPI on all the loans I held with them. They did say "no problem" and will let me know within 3-10 days what they have found.

Oh yes, one of the loans was repaid in less then half the time (that's the one I took out online), which means I have lost money (according to the letter).

Any advise?

Thanks,

KC

amersall

See what they come back with and post back.
With the loan you settled early, this was Single Premium PPI and at settlement they would have given you a rebate of the "unused" PPI, the remaining PPI would have been repaid by you in the settlement figure, so in effect you did lose money as you repaid the majority of the "unused" PPI back.

dunstonh

Did anyone receive a similar letter?

That is a CCL (customer contact letter). Loads of them going out. It allows them to activate the start point of the three year time bar.

What is the appropriate action to this?

Its an information letter only. It doesn't mean you were mis-sold. The only criteria used to generate that standard letter is if you had PPI.

You have put in your complaint now so you will have to wait and see if they find any wrongdoing or you get lucky with auto payout.