HSBC PPI Claim - should I fill in questionnaire they sent me?

spudbynight

My wife wants to claim back PPI on a loan and credit card from HSBC. She has several grounds for appeal :

1 - She wasn't in full time employment at the time, she was an agency temp.
2 - She was told she had to take the PPI on both, and the PPI had to be paid up front on the loan.
3 - She tried to cancel the PPI on the credit card when she found out she wasn't covered and HSBC refused. This was on two phone calls and a personal visit to a branch.

I filled in two claims for her using a form letter from Which? We have now received a letter back from HSBC with a questionnaire to complete and return to them. I have previously seen a questionnaire from the Ombudsman that people are using.

Should I fill in the form HSBC have sent us, or should I complete the Ombudsman form instead and send that back to them?

dunstonh

1 - She wasn't in full time employment at the time, she was an agency temp.

That is a good complaint reason.

2 - She was told she had to take the PPI on both, and the PPI had to be paid up front on the loan.

That is a weak complaint reason (almost impossible to prove).

- She tried to cancel the PPI on the credit card when she found out she wasn't covered and HSBC refused. This was on two phone calls and a personal visit to a branch.

That will depend on evidence available.

Should I fill in the form HSBC have sent us, or should I complete the Ombudsman form instead and send that back to them?

If you sent one of the forms in previously then you dont need to send in another. However, if you didnt send a form in and are now looking to decide on which one then it makes sense to use the HSBC one.

spudbynight

I didn't send a form in previously. I just sent an initial letter which listed the grounds. It was this one (with the appropriate parts deleted)

http://www.which.co.uk/consumer-rights/action/letter-to-reclaim-ppi-for-free

The reason I was hoping to use the Ombudsman form is because it also has guidance notes for completion. I've been struggling with some mental health issues and the guidance notes are a big help.

dunstonh

To be honest, it doesnt really matter which you send in as long as they have enough info to make a decision. More often than not, the provider version is virtually the same as the FOS one but on their own layout.

There is a strong complaint reason in there which will not need much additional info other than to verify who it was and the dates she was temp.

spudbynight

Thanks for the advice

Insider101

spudbynight wrote: »

My wife wants to claim back PPI on a loan and credit card from HSBC. She has several grounds for appeal :

1 - She wasn't in full time employment at the time, she was an agency temp.
2 - She was told she had to take the PPI on both, and the PPI had to be paid up front on the loan.
3 - She tried to cancel the PPI on the credit card when she found out she wasn't covered and HSBC refused. This was on two phone calls and a personal visit to a branch.

I filled in two claims for her using a form letter from Which? We have now received a letter back from HSBC with a questionnaire to complete and return to them. I have previously seen a questionnaire from the Ombudsman that people are using.

Should I fill in the form HSBC have sent us, or should I complete the Ombudsman form instead and send that back to them?

As per Dunstonh's comments, the content is unlikely to be materially different. I'd probably just send theirs back. If she was definitely not in permanent work at the time then under the terms of most PPI policies, that is reason for an uphold.

spudbynight

Well, I received a letter from HSBC.

1) They have agreed to a full and final settlement for the PPI on the loan. This includes the premium plus taxable interest at 8%.

I had a few questions on that. They charged the full amount of the premium upfront and added it to the amount of the loan. I can't get my head how that may or may not impact things. Have we been offered the correct amount of money? Can we sign settlement paperwork?

2) They have declined the claim on the PPI on the credit card.

"Our records show that in DATE, you applied for an optional Cardholder Repayment Protector to protect your HSBC Credit Card. This policy is designed to repay 10% of the outstanding credit card balance for a maximum of twelve months in the event of sickness, accident or redundancy. Life cover is also included in this plan.

The Policy Document and Product Information Pack explained how the policy worked together with the claims procedude and the exclusions that applied. The Policy Document confirmed that you had a period of time in which you had the right to cancel the Cardholder Repayment Protector.

Due to the Data Protection Act, HSBC cannot keep records indefinately. Unfortunately, due to the passage of time, the original documentation has not been located. However, I can confirm that it is not Bank procedure to issue insurance without the appropriate documentation being completed first.

I would also point out that premiums paid in respect of the plan have appeared on your statements where there has been an outstanding balance, throughout the period your policy has been in force.

Therefore I consider adequate steps were taken to ensure you were aware that you had Payment Protection Insurance on your credit card and to advise you of the main product features.

I realise that you may be disappointed with my decision but I hope that this letter has been helpful in explaining the reasons for it and that I have been able to respond to your concerns satisfactorily. However, if you have any further information or evidence that you feel is then please forward for my consideration"

My wife is certainly disappointed with their response on this. Is that the end of things? Do they have a legitimate defence? Certainly as a layperson the idea that someone can enter into an agreement without a set end date, with a limited time to cancel might fall under the scope of consumer laws on unfair terms in contracts.

My initial thoughts are that they seem to have conceded the point she made about being unable to cancel the policy.

She took out the credit card in branch and was told to just sign at the bottom without any explanation as to the suitability of the insurance. She was in temporary employment with an agency at the time.

dunstonh

I had a few questions on that. They charged the full amount of the premium upfront and added it to the amount of the loan. I can't get my head how that may or may not impact things. Have we been offered the correct amount of money? Can we sign settlement paperwork?

A refund of premium plus 8% is the required level.

My wife is certainly disappointed with their response on this. Is that the end of things? Do they have a legitimate defence? Certainly as a layperson the idea that someone can enter into an agreement without a set end date, with a limited time to cancel might fall under the scope of consumer laws on unfair terms in contracts.

She can refer it to the FOS if she disagrees.

However, on the other points, there is a cooling off period at the start which is a regulatory requirement. The policy can be cancelled at any time . So, the other points you make are not applicable.

She took out the credit card in branch and was told to just sign at the bottom without any explanation as to the suitability of the insurance. She was in temporary employment with an agency at the time.

I would suggest she goes back to them on that point as it doesnt appear to have been addressed in the response.

spudbynight

dunstonh wrote: »

However, on the other points, there is a cooling off period at the start which is a regulatory requirement. The policy can be cancelled at any time . So, the other points you make are not applicable.

Thanks for your other comments, but I am a bit confused by this.

The point I was trying to make is that she was told the policy could not be cancelled. She made three attempts to cancel it, two over the phone and one in branch.

You have said the policy can be cancelled at any time. Surely this doesn't tally with her experience. Also, if the policy can be cancelled at any time, why the cooling off period?

dunstonh

The point I was trying to make is that she was told the policy could not be cancelled. She made three attempts to cancel it, two over the phone and one in branch.

and if that is the case, then she was given the wrong information. These plans are pay as you go. Only loans have the issue where its at the start.

Also, if the policy can be cancelled at any time, why the cooling off period?

It is a statutory requirement. Even on plans that be cancelled at any time. Technically, plans cancelled within the cancellation rights period can only charge insurance for the number of days in force. Plans cancelled outside of the cancellation rights period can apply rounding (e.g. to the end of the month, two months or three months notice).