HSBC PPI claim

johnsonv82

Good morning all,
We're in the process of reclaiming PPI from HSBC from an old loan. Currently they're investigating our claim, it's nearly coming upto the 7th week of waiting now and we phoned for an update last week. The customer contact centre emailed the team dealing and the response was that they're currently calculating the figures? To me this sounds positive but they said there's nothing they could add and we should await a letter.

I did say it's sound like they've ruled in our favour but they can't confirm this. It sounds positive to me but I dint want to get my hopes up. Would they normally calculate a figure without making a decision ?

Really just looking to see to anybody has had similar in the past or if anybody could give their opinion

Thanks a lot

dunstonh

Would they normally calculate a figure without making a decision ?

Depends on whether its an upheld complaint or a rejection but checking under the Plevin ruling to see if the figures breach that.

johnsonv82

Thanks for the response

Plevlin ruling is about added commissions isn't it? So they could of just be checking to see if they breached that ? And may of already made a decision against miselling ? Sorry I only know the basics of ppi miselling.

Also I know it's just guess work at the minute.

dunstonh

Plevlin ruling is about added commissions isn't it?

its about commission but not added commission. Commission is paid out of the premium but not in addition to it.

So they could of just be checking to see if they breached that ?

Correct. However, they only do that if the complaint has been rejected. An upheld complaint gets a refund of premium. A plevin payout gets any excess above 50% commission paid out. it will always be lower than an upheld complaint.

The other thing to be aware of is that call centre staff often do not know what is going on behind the scenes. They may know the stage but they may not know why. For example, it could be getting calculated to see if it is one that is going to be auto paid out as its below their floor limit. Most firms have multiple tiers on these types of complaints. One for looking at the complaint and another for looking at calculations and another handling sign offs. So, it may have moved from one team to the other and be sitting in a pile that requires no action by calculations other to than to move it on.

I guess what I am saying is that you can't get your hopes up on this as it could still be a rejection. The main thing you can take from this is that it is nearing the end of the process. So, it won't be long. Wait until you get that letter.

johnsonv82

I really appreciate you taking the time to give for detailed explanation of the possibilities. You've certainly given a better response than I thought anybody could give us.

I'll let you know how it goes

Many thanks

SimoneCoretta

Hi

I received my letter yesterday after 9 weeks and was very unhappy with their amount. After sitting with my husband and trying to calculate how they got to their result, turns out they have not paid the 8% compensation nor have they paid back the interest. They basically netted 8% off the amount I had paid, then added it back on and took 20% tax off. Be very wary when you do get your letter.

dunstonh

SimoneCoretta wrote: »

Hi

I received my letter yesterday after 9 weeks and was very unhappy with their amount. After sitting with my husband and trying to calculate how they got to their result, turns out they have not paid the 8% compensation nor have they paid back the interest. They basically netted 8% off the amount I had paid, then added it back on and took 20% tax off. Be very wary when you do get your letter.

You should get a refund of the premiums. Minus any amount paid out on any claims or rebates (such as early repayment of the loan) paid plus 8% interest. The 8% interest should have 20% tax deducted.

[Deleted User]

SimoneCoretta wrote: »

After sitting with my husband and trying to calculate how they got to their result, turns out they have not paid the 8% compensation nor have they paid back the interest. They basically netted 8% off the amount I had paid, then added it back on and took 20% tax off.

If you are VERY sure the Bank have done what you allege, then you should get back to them and ask for an explanation why.

The bank should have provided a breakdown of the redress so that you can see exactly how they calculated your redress. There is no "compensation" as such , it's a payment of 8% interest from which they must deduct 20% tax. The Bank don't keep the tax payment, it goes to HMRC.

Exactly what interest hasn't been paid to you? You only receive a refund of the PPI policy in it's entirety if you didn't claim on the insurance and if you paid the loan off according to schedule. If you paid the loan off early, for example, you would have already received a rebate of the PPI total as part of your settlement figure..

Did you have any outstanding unpaid debt that they have offset against the redress?

Please do read the breakdown provided carefully before making any complaint, if you remain uncertain you can post the details here for comment.