HSBC PPI rejected by Ombudsman

claire1975_2 · 5 October 2019 at 3:53PM

Hi guys,
Looking for some advice here. I complained to HSBC when I heard that they put PPI on my mortgage policy when I did not realise it was added. However, at the time I did not reply to them within the 6 months when they gave us their decision as we had bereavement and depression in the family which meant as a family we had our attention elsewhere. These were in my opinion exceptional circumstances for the delay but the adjudicator and ombudsman disagreed and stood with the decision by HSBC to not delve into the suitability of the sale due to the time delay. We were both in well paid jobs and did not need the cover. In the words of HSBC in a letter - 'the policy would have paid out in addition to any cover you already had' so they obviously feel that need for cover is irrelevant. My question is that our delay was not intentional and I would rather not have had the circumstances befall us which caused it. Surely a financial institution cannot get away with poor advice purely because of the delay???? TIA

[Deleted User] · 5 October 2019 at 4:00PM

If the Ombudsman isn't willing to allow you extra time, I'm afraid it's over.

On the bright side, few people have enough in the bank to cover their mortgage, so PPI is generally a very good idea and not often mis sold.

Rainbowgirl84 · 5 October 2019 at 4:02PM

I'd give it up and move on. Putting your delay in appealing inside 6 months aside MPPI complaints more often than not fail.

antrobus · 5 October 2019 at 5:23PM

claire1975 wrote: »

Hi guys,
Looking for some advice here. I complained to HSBC when I heard that they put PPI on my mortgage policy when I did not realise it was added. ....

Hard to believe. Most MPPI is paid by a separate DD.

claire1975 wrote: »

However, at the time I did not reply to them within the 6 months when they gave us their decision as we had bereavement and depression in the family which meant as a family we had our attention elsewhere. These were in my opinion exceptional circumstances for the delay but the adjudicator and ombudsman disagreed and stood with the decision by HSBC to not delve into the suitability of the sale due to the time delay.We were both in well paid jobs and did not need the cover. ....

Being in a well paid job does not make you immune from redundancy, serious illness, accident, etc, and so does not mean that you don't need the cover.

P.S. HSBC would have delved into the suitability before giving you their decision.

claire1975 wrote: »

In the words of HSBC in a letter - 'the policy would have paid out in addition to any cover you already had' so they obviously feel that need for cover is irrelevant. ....

No, it means they feel the need was relevant.

claire1975 wrote: »

My question is that our delay was not intentional and I would rather not have had the circumstances befall us which caused it. Surely a financial institution cannot get away with poor advice purely because of the delay???? TIA

The good news is that you didn't get poor advice; the mis-sale reasons you've cited are ones that have been consistently rejected by FOS, who almost certainly would have sided with HSBC, and thus the 'delay' has cost you nothing.

SonOf · 6 October 2019 at 12:42AM

I complained to HSBC when I heard that they put PPI on my mortgage policy when I did not realise it was added.

That is going to be a bit difficult to believe. MPPI has its own direct debit payment separate to the mortgage. And unlike loan and credit card PPI, you get a proper policy schedule sent to you in the post at the start.

However, at the time I did not reply to them within the 6 months when they gave us their decision as we had bereavement and depression in the family which meant as a family we had our attention elsewhere. These were in my opinion exceptional circumstances for the delay but the adjudicator and ombudsman disagreed and stood with the decision by HSBC to not delve into the suitability of the sale due to the time delay.

The FOS usually overrule on the baring when it is a bereavement of a direct family member and as long as you raise it with them within a reasonable period. You have to justify the whole period of delay.

We were both in well paid jobs and did not need the cover.

Not a valid complaint reason. Indeed, it indicates that MPPi was more likely to be needed financially.

n the words of HSBC in a letter - 'the policy would have paid out in addition to any cover you already had' so they obviously feel that need for cover is irrelevant.

Your assumption is incorrect. They are saying that irrespective of other cover, this policy would have paid out. It eliminates a possible complaint reason where some types of PPi will not pay out if you have other cover.

My question is that our delay was not intentional and I would rather not have had the circumstances befall us which caused it. Surely a financial institution cannot get away with poor advice purely because of the delay???? TIA

Who says they gave poor advice?

The majority of MPPI complaints fail. its not like loan or credit card PPI. Nothing you have said suggests you were missold.

As far as the delay is concerned, how long did you wait before contacting the FOS?

claire1975_2 · 6 October 2019 at 10:52AM

My job at a leading bank was to check this type of advice and if cover is not needed but sold we had to ensure it was recorded as against advice. If your sick cover/savings are sufficient there really is no need for this cover and in these situations it needs to be clearly documented that this has been brought to your attention. We had no idea this cover was in place. The FOS have said that due to the delay then they are not asking HSBC to justify the sale.

SonOf · 6 October 2019 at 2:04PM

If your sick cover/savings are sufficient there really is no need for this cover

That is not correct and the FOS routinely reject complaints from those that have 12 months sick pay with the employer when it comes to MPPI (unlike loan and credit card PPI).

As long as the MPPI pays out in addition to employer benefits, then its not a missale reason (hence why they gave their response which you misunderstood).

We had no idea this cover was in place.

You are not credible. You say your job was checking these sorts of things. Despite you not being aware of the current FOS position, it would suggest you should have greater knowledge than the average consumer.

Yet you are claiming that you neither knew you had it, despite an application being completed, a policy schedule being issued, a letter stating when the direct debit was going to be taken and x number of years of paying the direct debit every month.

The FOS have said that due to the delay then they are not asking HSBC to justify the sale.

So, the whole conversation is largely pointless as that is final. However, based on what you have said and with it being MPPI, you would have expected the FOS to reject it if they were to look at it.

claire1975_2 · 6 October 2019 at 7:22PM

Thanks for your advice - I was not fully trained in this role at the time of taking out this mortgage as I did not check mortgage advice during my first year or so. To our knowledge there was not additional direct debit for the MPPI as this would have flagged it up to us.

[Deleted User] · 6 October 2019 at 10:04PM

claire1975 wrote: »

To our knowledge there was not additional direct debit for the MPPI as this would have flagged it up to us.

It really no longer matters.

Your "complaint" was (correctly? ) rejected by the Bank and afterwards you left it far too late (without valid reason) to find out if the Ombudsman would also have rejected.

Basically, the end.

Sorry.

HSBC PPI rejected by Ombudsman

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