HSBC mortgage PPI

mr_cc

I'm completely unsure if I have any prospect on making a claim for mis-selling PPI for my HSBC mortgage.

From reading previous poster's stories, I have previously thought that it probably wasn't mis-sold, but looking back at my situation at the time, and since, it definitely wasn't appropriate for me.

I have paid roughly £20 per month since September 2005, for HSBCs standard mortgage payment protector insurance. It was sold to me in a face to face meeting, was presented as an integral and necessary part of the application (non-optional) and the process of me signing up for it took less than a minute.

It covers 1 years mortgage repayments in the event of illness or unemployment.

At the time, (and still) my employers sick leave was 6 months full pay, 6 months half.

I was eligible for redundancy payments of 6 months wages, and had some saved money, which could have covered 12 months mortgage easily. I also work in a sector which has very high employment rates and have never been out of demand.

So I think the product wasn't necessary or appropriate for me. I just don't know if that means it was mis-sold or not? Should the salesman have delved into that kind of detail with me?

I have now cancelled the insurance and will probably put in a complaint, but does anyone have any idea if my reasons for claiming would be valid?

Thanks

dunstonh

was presented as an integral and necessary part of the application (non-optional) and the process of me signing up for it took less than a minute.

First point to pick up on there is that you say it was non-optional. What evidence do you have for this?

At the time, (and still) my employers sick leave was 6 months full pay, 6 months half.

Which can be a good complaint reason on short term term debts but not on mortgage debt. The FOS have been rejecting complaints on MPPI where people have been using this as their reason.

I was eligible for redundancy payments of 6 months wages, and had some saved money, which could have covered 12 months mortgage easily. I also work in a sector which has very high employment rates and have never been out of demand.

Redundancy pay is not guaranteed and the small level of savings you had clearly left you in a shortfall position. (savings for 6 months mortgage payments doesnt go far when you have all the other bills to pay and a mortgage lasting many more years.

So I think the product wasn't necessary or appropriate for me.

Actually, what you say indicates you had a financial need and were eligible.

Should the salesman have delved into that kind of detail with me?

The "salesman" had a mortgage application and the financial information you gave to them to get the mortgage. There is virtually enough for an MPPI.

I have now cancelled the insurance and will probably put in a complaint, but does anyone have any idea if my reasons for claiming would be valid?

Most MPPI complaints fail. The FOS reject most MPPI complaints referred to them. Nothing you have said has indicated any wrongdoing (unless you have evidence it was compulsory - but that can work against you too). Your comments indicate you had a financial need for it. So, based only on what you have said, you would expect a rejection. However, its a bank so you never know what the outcome will be plus we dont have access to the audit trail here.

Midnites

MY problem is i took out mortgage protection insurance in 1998 and was paying a monthly premium, then in 2002 i have another letter saying what my monthly payments where for the following year, since then i have heard nothing but still paying the same amount every month. The company was prudential, and for the last three days i have been trying to get intouch with them but keep getting passed to all different people and call centres in the phillipines, my phone bill is going to be a big one. Does anyone know how to get in touch with them, Thanks

mr_cc

Thanks for your reply.

I thought as much, I have read up on mortgage PPI complaints every few months for a while, and this seems to be the consensus, although there are the occasional stories of banks paying out in similar situations.

My wife is very keen to make a complaint, but I don't want to get her hopes up at all, we have several family members who have had substantial refunds, but all from loan and credit card PPI which have spiked our interest.

Coupled to all this, I am actually really happy with the service i get from HSBC. We have HSBC premier accounts and really value the extras we get from them. I wouldnt want them to withdraw this perk if we made a complaint.

dunstonh

My wife is very keen to make a complaint, but I don't want to get her hopes up at all, we have several family members who have had substantial refunds, but all from loan and credit card PPI which have spiked our interest.

Loan and credit card PPI is really easy to complain about and you are likely to succeed. Most complaints succeed on those. MPPI sees most complaints fail. Today, it is only one of two types of PPI still retailed.

Coupled to all this, I am actually really happy with the service i get from HSBC. We have HSBC premier accounts and really value the extras we get from them. I wouldnt want them to withdraw this perk if we made a complaint.

As this was an adviser sale (which only accounts around 1% of PPI complaints - again most of those fail), it may result in a change of service if that adviser is still around (either directly or in a linked role where he/she can warn other staff about you). He/she will not treat you the same way. This only applies with adviser sales. Not normal bank clerk sales as they are not told about complaints against them.

dunstonh

Midnites wrote: »

MY problem is i took out mortgage protection insurance in 1998 and was paying a monthly premium, then in 2002 i have another letter saying what my monthly payments where for the following year, since then i have heard nothing but still paying the same amount every month. The company was prudential, and for the last three days i have been trying to get intouch with them but keep getting passed to all different people and call centres in the phillipines, my phone bill is going to be a big one. Does anyone know how to get in touch with them, Thanks

Prudential are a life assurance company. They didnt offer PPI.

Pru are based in Lancing and their telephone number is on their website.

Midnites

dunstonh wrote: »

Prudential are a life assurance company. They didnt offer PPI.

Pru are based in Lancing and their telephone number is on their website.

Hi, Thanks for your reply. I had mortgage payment safeguard insurance, since 1998, the last letter i had from them told me what my monthly payments are for the year that was in 2002, they are still taking the same amount from my bank every month, the last 3 days i have been trying to get intouch with them only to be passed on to all different people and even to the phillipines, one even told me i had the insurance untill 2029 when my mortgage is finished in 2023.

roonaldo

mr_cc wrote: »

IIt was sold to me in a face to face meeting, was presented as an integral and necessary part of the application (non-optional) and the process of me signing up for it took less than a minute.

HSBC's PPI was optional in 2005. This was a regulated insurance sale sold alongside a regulated mortgage sales. You would have been given a demands and needs statement and Key Fact Illustration which certainly would have taken more than 1 minute.

It covers 1 years mortgage repayments in the event of illness or unemployment.

At the time, (and still) my employers sick leave was 6 months full pay, 6 months half.

I was eligible for redundancy payments of 6 months wages, and had some saved money, which could have covered 12 months mortgage easily. I also work in a sector which has very high employment rates and have never been out of demand.

The PPI pays out on top of sick pay. Redundancy payments are also not guaranteed, if the company went bust how wold they pay you 6 months wages?? Hence what this s for. Insurance is also to cover unforeseen circumstances. This is also your mortgage and taking PPI is still considered good advice.

saver861

mr_cc wrote: »

I'm completely unsure if I have any prospect on making a claim

So I think the product wasn't necessary or appropriate for me. I just don't know if that means it was mis-sold or not? Should the salesman have delved into that kind of detail with me?

Thanks

Well I have a somewhat similar situation to yours .... there is a lengthy thread about it. I had all you had and more at that time of taking out the MPPI. Both my partner and I had 12 months sick pay, redundancy pay, existing income protection policies, £30K plus instant access savings, and more!

We still ended up with MPPI!! Now the question is really whether we had sufficient coverage and were still persuaded into buying the additional MPPI - thus mis sale - or whether it was simply an additional luxury - our choice.

I have made a complaint with the Bank which is currently being assessed. Most people on here tell me I don't have a valid complaint - in fact all that responded say I don't have a valid complaint!!

For example, some have said on this thread that redundancy payments are not guaranteed. Wrong - the reason being it does depend on the circumstances. In my case, it was part of my contract of employment within public sector - thus not likely to go bust!! The rules could change at a later point of course, but then I would address my insurance needs accordingly.

You also mentioned you had a good HSBC account and did not want to lose any perks due to making a complaint. No can do. If you make a complaint it is either valid or declined. Nothing to do with your other accounts.

So I would suggest not to be unduly swayed by the responses on here but to assess whether you have grounds for a complaint using the responses on here and elsewhere. I probably won't be going to the FOS with my complaint and will likely accept the response from the bank, if they decline my complaint and provide convincing reasons.

roonaldo

CAG forum is here. They will tell you what you want to hear.

https://www.consumeractiongroup.co.uk

saver861

roonaldo wrote: »

CAG forum is here. They will tell you what you want to hear.

https://www.consumeractiongroup.co.uk

No point in OP or anyone else being told what they want to hear .... absolute facts are more relevant!!