How much is a claim worth

rorysdad

Hi,

Back in 2003 my partner took out a personal loan for £5,000 with HSBC.We can't recall whether it was for 3 or 5 years.

We have lodged a PPI claim and the Financial Ombudsman has upheld it (twice - as the Bank appealed the original decision!) - received a letter today confirming that.

I am trying to find out (in the absence of any paperwork showing any figures) what the claim may be worth - perhaps a ballpark figure based on other people's experience?!

The Ombudsman's letter states that my partner 'borrowed more to pay for the PPIso her loan was more than it should have been..' and that HSBC should:

- work out and pay (my partner) the difference between what she paid each month on the loan and what she would have paid without PPI;
- work out and pay (my partner) the difference between what it cost to pay off the loan and what it would have cost to pay off the loan without PPI
- add simple interest to the extra amount (my partner) paid from when she paid it until she gets it back. The rate of interest is 8%
- if (my partner) made a successful claim under the PPI policy, HSBC can take off what she got for the claim from the amount it owes her

Not sure what the last para means - or does it mean that if she claimed under the PPI the amount she was paid would be deducted - she never used the policy so this will not apply?

Any help much appreciated.

RD

Insider101

rorysdad wrote: »

Hi,

Back in 2003 my partner took out a personal loan for £5,000 with HSBC.We can't recall whether it was for 3 or 5 years.

We have lodged a PPI claim and the Financial Ombudsman has upheld it (twice - as the Bank appealed the original decision!) - received a letter today confirming that.

I am trying to find out (in the absence of any paperwork showing any figures) what the claim may be worth - perhaps a ballpark figure based on other people's experience?!

The Ombudsman's letter states that my partner 'borrowed more to pay for the PPIso her loan was more than it should have been..' and that HSBC should:

- work out and pay (my partner) the difference between what she paid each month on the loan and what she would have paid without PPI;
- work out and pay (my partner) the difference between what it cost to pay off the loan and what it would have cost to pay off the loan without PPI
- add simple interest to the extra amount (my partner) paid from when she paid it until she gets it back. The rate of interest is 8%
- if (my partner) made a successful claim under the PPI policy, HSBC can take off what she got for the claim from the amount it owes her

Not sure what the last para means - or does it mean that if she claimed under the PPI the amount she was paid would be deducted - she never used the policy so this will not apply?

Any help much appreciated.

RD

Yes, that is correct. As to how much she is likely to receive we could not tell you without making a total guess. It depends on allsorts, original PPI cost, interest rate, whether the loan was repaid early etc .

rorysdad

Thanks Insider 101 - does anyone on here know what the PPI cost would have been in 2003?

The loan was not repaid early. There is in fact still around £700 owing on it which is being paid to a debt recovery company in weekly installments.

Does that make a difference to the claim?

RD

Insider101

rorysdad wrote: »

Thanks Insider 101 - does anyone on here know what the PPI cost would have been in 2003?

The loan was not repaid early. There is in fact still around £700 owing on it which is being paid to a debt recovery company in weekly installments.

Does that make a difference to the claim?

RD

It varies wildly from one company to another and unless you have your loan agreement it is not possible to tell.

It does make a difference as well, the have the right to set off any redress against the outstanding balance of the loan.