Hsbc Ppi

eastern

My husband and I took out a 7 year loan with HSBC 3 years ago with PPI and for the last 4 months or so, we've been trying to cancel this insurance. HSBC insist that the only way to do this is to take out a new loan without insurance to clear the existing one. We sent copies of all our correspondence to the Financial Ombudsman Service and all they did was confirm receipt of them and we've heard nothing since despite contacting them several times. Since then, we've had another letter from HSBC saying that although we'd been to the Ombudsman they STILL stand by their advice that we would have to take out a new loan. So we're at a standstill with this now. Any advice would be very welcome.

jonesMUFCforever

I am of the opinion that HSBC are correct.
You signed an agreement which binded both of you to a set of repayments at a fixed rate of interest.

You now want to break that agreement by cancelling part of the agreement - HSBC have told you that is OK but to do so you need to open a new loan account for the outstanding amount after the refund has been calculated.

The new loan will be charged according to your credit rating now and you may be offered a new rate which is higher than your present rate.
You can choose to accept this or leave things as they are or take your business to a new lender.

From what you have written I really do not see why you have involved the Ombudsman - their lack of action may be because they don't think you have much of a case either.

Sorry if this is not what you wanted to hear.

sambohacking

hi im in the same situation with hsbc, ive been advised by the ombudsman that they are in the legal right to make yu issue a new loan but they said that if they refuse the new loan for any reason or offer you a new loan where its a rediculious interest rate that costs your more money in the payment you can complain and the ombudsman will investigate, as this is a way they try and keep you paying the ppi

hope this helps

sam

Rooksy_2

Hello there,

i am in the position soon to be of asking hsbc for a full refund and cancel of ppi, my reasons are these,please comment if you know different.

i was sold a loan with ppi i agreed to this however here's the punch i learnt later that there were in fact 2 types of ppi, a monthly premium and a single premium( thats a loan style were the total amount is loaned and you pay back the amount with interest.....well i wasn't informed of the types of loan,,if i had i would not have gone for the single premium i would have chosen the monthly one...hsbc didn't tell me they simple chose to install the single premium with out my knowledge....if thats the case you may have re-dress,,mis leading,,check what you have written to the ombudsman then re-write the letter witha clearer explanation.

i have to do all this first but i will be putting my arguments forward

Rooksy

jonesMUFCforever

Rooksy wrote: »

Hello there,

i am in the position soon to be of asking hsbc for a full refund and cancel of ppi, my reasons are these,please comment if you know different.

i was sold a loan with ppi i agreed to this however here's the punch i learnt later that there were in fact 2 types of ppi, a monthly premium and a single premium( thats a loan style were the total amount is loaned and you pay back the amount with interest.....well i wasn't informed of the types of loan,,if i had i would not have gone for the single premium i would have chosen the monthly one...hsbc didn't tell me they simple chose to install the single premium with out my knowledge....if thats the case you may have re-dress,,mis leading,,check what you have written to the ombudsman then re-write the letter witha clearer explanation.

i have to do all this first but i will be putting my arguments forward

Rooksy

I think this will take this thread off track. Please post it seperately and I will give you some of my thoughts.

Rooksy_2

Hello there, will do, however i intended it as a reply to eastern, ie does he have a single or monthly premium attached to his loan and was he made part of the decision process of what type of loan...i do agree little bit long in the tooth.

Rooksy