HSBC Data Protection

Alenamai

Hello I am new here and am hoping for some help.

When I took out my mortgage in 2002 I was told I had to take HSBC's payment protection out. I was told I could not have the mortgage without the payment protection and that I had to keep it for a set amount of time (can't remember how long but I think it was 2 years). It was a definite requirement of having the mortgage. At the time being a first-time buyer I just took it as an additional payment I had to make.

Anyway in 2014 I read about the PPI claim scandal and asked HSBC to investigate. Initially they fobbed me off that I didn't have it. Then I sent a subject access request and they responded by saying that they do not keep records that far back because of data protection and that the matter was now closed. After several other conversations I have got nowhere with them. I have now sent off another subject access request to them and asked for the name of the company who underwrote their MRP at the time, so I can contact them to see if they still have records.

My problem is that aside from the account numbers I have no other paperwork. From what I have read online I believe it was PPI miss selling because I was not given the option of taking the MRP, advised that I could buy a similar product elsewhere and I had no need of the MRP because I was in secure employment with life and critical illness cover and a good level of sickness benefit with my job. Have HSBC broken the banking code by not sending me any details of my accounts through the subject access request? When I have asked them about it they just keep saying that they don't have any record of me having had MRP.

Any help would be gratefully received.
Thank you.

Nasqueron

Did you buy it direct from HSBC or via a broker?

Your model (particularity the 2 year thing) sounds like a broker model whereby you get free service and the broker gets payment via commission on the insurance which you need to maintain for 2 years or have to pay the broker if you cancel early. That model is allowed and in that scenario your choice is to pay the broker or take the insurance. After the 2 years you could shop around. If it was a broker, as it was 2002, if they were an IFA (not an agent of HSBC) then you have no case as it is 3 years pre regulation.

If you bought direct from HSBC it could well be miss-sold but of course you have no proof you were told this sadly and as per DPA laws, after 6 years or so they delete old records, another SAR will not produce new results in normal circumstances - you would do better asking on the mortgage forum if anyone knows who the underwriters were.

On your other points, everyone says they were in secure employment right up until the company goes under or cutbacks happen, I believe only 1 or 2 civil service jobs are effectively immune to redundancy. Sickness benefits that do not overlap with MPPI payout are moot (as you get both, thus the MPPI is useful) and no-one, not even the civil service, gets sick pay that would cover the life of a mortgage.

No HSBC have not broken the banking code, DSAR are covered by a different body and if they have looked and found no records then they are allowed to say that, they cannot be 'done' for not providing records if they don't have them.

Alenamai

Thank you for your quick response.
The MRP was through HSBC and not through a broker (that I am aware of). I was told by HSBC that the MRP was a requirement of the mortgage.

I can see now that I should have kept the statements but I am unsure why HSBC have not provided me with any of the information they have from my subject access request. I sent them the letter I found on this site and the cheque for £10 but they have not sent me anything. However, when I spoke to someone from HSBC on the phone about this last year he mentioned something going back to 2001, which makes me think that they are not being truthful about not having any information.

I've just dug out a letter from HSBC, where they have advised me that I can contact the data controller for First Assist Insurance Services LTD. I am guessing they are the company who might have further details. They gave me a form to fill out and enable them to contact the company, which I did but have heard nothing back from them. Do you think it is worth me chasing them up directly?

Thanks again.

Nasqueron

If you believe the SAR was not completed properly you can complain to the ICO:

https://ico.org.uk/concerns/handling/

If they find HSBC were withholding data unfairly they can impose a fine.

The HSBC/MRP thing is difficult as a company can, as part of a business model, require you to take out insurance or you don't get the loan - you are then free to chose to take it or go elsewhere.

One of the financial experts on here should be able to advise when they were required to start letting you shop around and not limiting the cover to their own product - the problem will always be that HSBC will produce a sales script that "recommends" the product (assuming it wasn't a legitimate requirement of the lending)

-taff

Alenamai wrote: »

From what I have read online I believe it was PPI miss selling because I was not given the option of taking the MRP, .

As has been explained, sometimes that was a condition of the mortgage.

Alenamai wrote: »

advised that I could buy a similar product elsewhere.

Not true - Tesco don't have to advise you that Asda is cheaper...

Alenamai wrote: »

and I had no need of the MRP because I was in secure employment with life and critical illness cover and a good level of sickness benefit with my job. .

Good reasons for loan or credit card PPI, not good for mortgage PPI, since they won't necessarily cover the mortgae owing.

dunstonh

I am unsure why HSBC have not provided me with any of the information they have from my subject access request.

Maybe they dont have any information. MPPI is typically supplied by a third party company and not the bank itself. There may be as little as a tick box on the mortgage application form to indicate that MPPI exists.

From what I have read online I believe it was PPI miss selling because I was not given the option of taking the MRP, advised that I could buy a similar product elsewhere and I had no need of the MRP because I was in secure employment with life and critical illness cover and a good level of sickness benefit with my job.

1 - you dont need to be told you can buy elsewhere
2 - employment benefits are not an issue with MPPI unless the insurance company wont pay out (The FOS have been rejecting complaints with 6 months full pay, 6 months half pay). Life and CI cover does not overlap with MPPI.

Alenamai

Well, I did chase up about the subject access request and 3 large boxes of data were delivered to my bank. However, before I even had a chance to collect, it HSBC have contacted me to say they have 'found' the details of my MRP plan (despite telling me they had no records going back more than 5 years). They have apologised and paid me £250 in compensation for the 'unacceptable' length of time it has taken. They are now dealing with my ppi claim. I will let you know how it works out. Thank you to this site for the SAR letter template and advice. :money:

Alenamai

Had a call from HSBC today to say that my MRP was mis-sold and that they are going to pay up with the 8% interest. I'm so glad I found this site.