HSBC life insurance and payment protection

NNota

My husband and I applied for our first mortgage back in 2010 with HSBC. It was initially not accepted but when we asked what we could do, they granted the mortgage on the conditions that we opened a joint bank account with them and opened life insurance policies each and a payment protection insurance for my husband. Is this something we can claim back?

dunstonh

Life assurance and income protection are not PPI.

Most people take either or both of those with their mortgages. So, the product type is normal. Your allegation is almost certainly unprovable (do you have any evidence). So, you you would expect failure on a complaint on this basis unless you had no financial need for the policies.

magpiecottage

It sounds like the bank decided to offer you the loan only if you took out particular insurance so that you could maintain repayments if you fell ill or repay the loan if you died.

This sounds like an exercise of legitimate commercial judgement to me and therefore grounds for an ombudsman to dismiss your complaint without considering its merits.

Insider101

magpiecottage wrote: »

It sounds like the bank decided to offer you the loan only if you took out particular insurance so that you could maintain repayments if you fell ill or repay the loan if you died.

This sounds like an exercise of legitimate commercial judgement to me and therefore grounds for an ombudsman to dismiss your complaint without considering its merits.

This is the correct answer.

roonaldo

I worked in compliance for HSBC a few years ago. From what I remember the mortgage product you applied for was only available to existing customers, so they would open a current account for you.

HSBC mortgage advisers did not sell or recommend PPI to customers in 2010 and didn't make it a condition of the mortgage, if you were sold this it would have been sold it by a different person in the branch as they were keeping the sales completely separate and so tight it would eradicate onerous complaints like these. HSBC were swamped with PPI complaints in 2010 so would not have mis-sold you anything.