HSBC refuse to cancel PPI

PJ1967

Hi,

I went along yesterday to HSBC with my 19 year old son who took out a £1000 loan in November, recently he has had a few problems with his finances so we've been looking at ways at cutting costs and trying to reclaim bank charges, which I did start unfortunaltely on 27/7/07 when they decided to freeze all refunds, (typical).
However, yesterday I asked could he cancel the PPI which he paid in one single payment of £261 which has been added to loan and they said "they would have to re-valuate the loan, but as his credit scoring is low this would not be possible" in order to cancel the PPI.

I don't understand why they would need to re-valuate the loan and put another new loan through, why cant they just cancel the PPI altogether? I'm confused.

Any ideas what steps to take next?

Also sorry another quick question...............I have just recently cancelled the PPI with Black Horse for his car payments which they did not problem. Question is for the last 8 months he was paying this at roughly £26.00 a month, to begin with he said no to PPI at the start of the agreement but the car dealer put it through and we've only just managed to cancel it. Can anybody tell me if we can reclaim the last 8 months back??

Kind regards Paula

olly300

Put your request in writing to the customer service department of the bank.

State in the letter you expect an acknowledgement within 2 weeks. At the end of the letter inform them if they refuse to cancel the PPI on the loan within 3 months you will take them to the financial ombudsman. Send the letter by recorded delivery otherwise they are likely to deny receiving it.

Make sure the letter is written in your son's name.