HSBC, has this PPI been mis sold please

[citizenB]

When my DH first got himself into financial trouble a few months back we did try to cancel the PPI on a Personal loan ( DH's name only) he had been persuaded to take out by HSBC that covered the overdraft on our joint account and his HSBC credit card.

 

We did not realise that we could try for a mis sell and appealed to their better nature !! to cancel the PPI and therefore allow DH to pay the loan off quicker

 

I have read the stikkies on the PPI threads and also the documents that came with the paperwork for the loan and PPI after he had signed on the dotted line. 2 things leapt out at me and DH swears that he was not advised of these at the time of signing.

 

1). Eligibility; For the purpose of this insurance WORK means any paid WORK of at least 16 hours per week.

 

2). Important notes:. The POLICY does not cover a medical condition or related symptoms YOU knew about at the START DATE whether the condiiton had been diagnosed or not. This is known as a PRE-EXISTING MEDICAL CONDITION.

 

Point 1). My DH is a Tutor employed on a Part time contract with a college one week he might work 19 hours, the next 8 hours. He does not get paid any retainer for the College breaks which amount to almost 3 months per year. Having gone through his work schedules over the year he works 14.29 hours per week spread over the year. This is not guaranteed however and some hours might be cancelled, none however are ever added. The bank were well aware of this fact.

 

Point 2). 17 years ago DH was retired from his previous employment on the grounds of ill health (he is in receipt of an occupational pension) .. namely a back injury that required major surgery, that left him with a paraplegic leg. He had to have a medical before being employed by the college. At that medical it was deemed he could only be employed on a part time contract BECAUSE of his pre-existing medical condtion. The bank were well aware of this.

 

Could I now have another go at the bank on DH's behalf to try and get this policy cancelled do you think. Also should I S.A.R the bank to obtain all or any notes made at the Bank when they called him in to set this loan up.

 

Any comments would be most gratefully received. Thank you x

[citizenB]

I will be sending a letter to HSBC tomorrow requesting they cancel the policy in that they mis sold on the 2 counts as shown above.

 

If anyone reads this, could you please advise if I should S.A.R. HSBC as well. Many thanks x

[citizenB]

Hi Could someone with PPI knowledge please look at my thread linked below. Thank you xx

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/129427-hsbc-has-ppi-been.html

[gerona]

Not sure if this helps but nat west repaid mine on the grounds that I only worked 15 hour per week.I think they probably repaid it because when I was made redundant I submitted a claim off the insurance and wasn't covered. It was probably cheaper to give me a refund

[loz]

I don't know whether to advise you to do a S.A.R or not - I did it a couple of months ago and got nothing from them but copies of the agreement(s) and statement details... still trying to work out where I stand with it all. Maybe your branch will have more detail than mine though.

 

It definitely sounds like a mis-sell to me though, from what you've said. Good luck with whatever you do

 

Loz

[Helford]

Do remember that HSBC are going to be fairly receptive to sorting these as they picked up a fine of in excess of £1 Million last week from the FSA for PPI mis-selling by their HFC credit card arm.

 

H

[Edz11]

well if his circumstances were as you have detailed then PPi was never going to pay out. It was mis-sold Start the claim process off!

[rory32]

2 threads merged and thread moved to PPI forum. Please stick to one thread per topic.

[citizenB]

2 threads merged and thread moved to PPI forum. Please stick to one thread per topic.

 

My apologies. Thank you for merging x

[citizenB]

Thank you gerona, loz, helford and Edz11 for your comments. I have sent the letter today x

[citizenB]

Have sent off the letter to request PPI is cancelled.

 

I am now preparing a S.A.R. letter using the templates on the forum. I have noticed from the bank statements that the £1.00 token payments sent over the last 3 months have been used to pay off the overdraft caused by the twice monthly bouncing of the loan. Should I include a note to say that as the SAR is a legal request , to use the £10.00 fee enclosed with it would be a misappropriation of funds ?

[Edz11]

I'd do that - avoids any doubt then!

[citizenB]

OH has a loan with HSBC bank and a direct debit was set up. This is the only item left in the account as a parachute account has been set up.

 

When he got into difficulties he asked the bank to cancel the direct debit which they refused to do thereby applying for the loan payment twice a month which incurrs bank charges both for unauthorised overdraft, bounced debits etc.

 

I have in front of me a 'Direct Debit Guaranteee'.

 

It says:

 

This guarantee is offered by all Banks and Building Societies that take part in the Direct Debit Scheme.

The efficiency and security of the scheme is monitored and protected by your own Bank or Building Society.

If the amounts to be paid or the payment dates chanbe, HSBC bank plc will notify you three working days in advance of yoru account being debited or as otherwise agreed.

If an error is made by HSBC Bank plc or your Bank or Building Society, you are guaranteed a full and immediate refund from your branch of the amount paid.

 

You can cancel a Direct Debit at any time by writing to your Bank or Building Society, please also send a copy of your letter to us.

 

Now I have written to them asking this be cancelled and they are refusing to do so...Although they have also rejected a prorata offer for the loan, we are still sending it and HSBC are using the funds to reduce the overdraft. Can they do this ? are they in breach of their own code ?.

[Castlebest]

Hiya citizenB, I'm not sure about the direct debit guarantee, I've never seen one of those before I think you should draw the banks attention to it and see what they say.

 

Although they have also rejected a prorata offer for the loan, we are still sending it and HSBC are using the funds to reduce the overdraft. Can they do this ? are they in breach of their own code ?.

 

I don't understand what you mean by this paragraph, have you offered to pay a lump sum in full and final settlement that HSBC have rejected? or are you paying off a set amount per week/month that HSBC are using to reduce the overdraft?

 

pete

[dx100uk]

has not hsbc got internet banking?

if so you can cancel the dd online.

 

AFAIK if you request it to be cancelled they must do so, like you say, its part of the DD guarantee

 

dx100uk

[Castlebest]

Problem with HSBC, they refuse to cancel direct debits to their own loans and they never return a payment from one of their own loans even on line its not possible to cancel one.

 

pete

[dx100uk]

then surely this is against the dd guarantee!

 

dx

[citizenB]

then surely this is against the dd guarantee!

 

dx

 

This is what I am trying to establish ? Have they breached a code of conduct here?.

 

My access to the HSBC online banking has been cancelled so I am not able to cancel the Direct Debit from there.

 

 

Castlebest, I am attaching a copy of the DD guarantee. The last bullet point says that the DD can be cancelled at any time !!. I have received one of these from each company I have set up a DD for over the last 2 years or more. ie, Telephone/electricity/council tax/TV Licence etc.

 

 

 

 

We have offered reduced payments on a monthly basis for the loan, however HSBC are quite adamant that the overdraft incurred by bouncing the DD is to be funded with these payments. This of course is a vicious circle with the OD increasing as is the loan with extra interest and late payment fees also being added.

Edited August 8, 2009 by citizenB

[freakyleaky]

So they have refused your offer of lower payments but are still accepting the amount you send and paying it off the od? In effect they are accepting the payments then?

They are definately in breach of the DD guarantee by not allowing you to cancel it.

I think it is the FSA that you need to contact regarding this. I will have a search around and see who you need to contact.

[freakyleaky]

This from the FOS.

banking - direct debit guarantee

 

Direct debits are now a major part of daily life, with many people using them each month to pay their household bills. The direct debit guarantee is a powerful safeguard for customers. So it’s important that firms make sure their staff understand its provisions.

Unfortunately, many do not. Here are some of the things firms have told customers (incorrectly) when problems have arisen:

‘We don’t operate the direct debit guarantee.’

‘You’ll have to contact the originating company for a refund.’

‘We need a month’s notice to cancel a direct debit.’

‘The guarantee doesn’t apply – because you haven’t suffered a loss.’

If you pay by standing order, it is up to your bank to send the payment. If you pay by direct debit, it is up to the payee’s bank to call for the payment, but you will rightly look to your own bank/building society to ensure the smooth running of any direct debits. Mistakes and errors are covered by the direct debit guarantee.

The direct debit guarantee applies to all banks and building societies taking part in the direct debit scheme. It says that:

If there is a change in the amount to be paid or the payment date, the person receiving the payment (the originator) must notify the customer in advance.

If the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid.

Customers can cancel a direct debit at any time by writing to their bank or building society.

[freakyleaky]

You have to make any complaint regarding the DD guarantee to the FSA. Check out this link for information regarding complaints to the FSA.

 

How to complain to a financial firm

[citizenB]

Thank you so much. I will follow the advice on that link and get something in the post on Monday. Much appreciated.

[citizenB]

I tried to delete the post but couldnt so just removed text. sorry x

[citizenB]

Update...

 

Letter sent re the cancelling of Direct Debit also letter re bank charges and other information held on their files.

 

Yesterday I received 17 envelopes each containing one month's statements so I can obviously expect a whole rainforest to descend on me before they get the whole 6 years delivered. Plus one extremely large envelope containing a 2 page generic reply assuming that it was just the charges I was requesting and they were legally obliged to advise me that because of the court case they wouldnt be processing any claims at the moment.

[citizenB]

Update:

 

Wrote to HSBC on 5th February requesting that PPI be treated as mis sold and received letter from them dated 12th saying they would reply in 4 weeks as per their time scales.

 

I have received another letter today saying their enquiries are not complete and they will write again in 4 weeks time.

 

The Data Protection letter SAR that was sent at the same time apparently got shunted round HSBC until it found a home and the statements started to arrive about 10 days later. They decided to assume that I only sent the SAR so I could claim Bank charges. I sent them another letter on 1st March pointing out that it wasnt the only reason and detailed a list of items that I wanted, advising that the timescale of 40 days still stood from the date they received the SAR originally.