HSBC CC PPI - Upheld but need help!

[shaniannie]

I put in a claim for HSBC credit card PPI for my mum's other half (who's my employer, has always been self employed so HSBC upheld complaint straight away).

 

The thing is, their amount is very different to mine.

 

At first, they offered somewhere in the region of £300.00 stating they could only go back to 2006 on the information they had.

 

I had statements dating back to August 2003, so photocopied them all and sent them in, along with my spreadsheet again.

 

It took them 2 months for a revised offer, but it came yesterday.

 

Our total premiums paid is more or less the same, give or take ~£5. The statutory 8% is £100 out.

 

The compound interest is WAY off. Over £1200 less.

 

I say: Compound interest £1576.22

They say: Compound interest £332.40

 

I managed to get to my APR figure, by taking the APR off each statement and averaging it - 18 months @ 18.9%, 36 months @ 19.9%, and 52 months @ 22.9%

 

I expected it to be a little out - the APR was slightly lower in 2003/2004 when the balance of the card and PPI payments were higher. But even if I use the 18.9% APR for the whole claim, it's still ~£1000 out.

 

I've attached my spreadsheet as a PDF, so if someone could take a look I'd be really greatful. The few months in red is missing statements, but my estimates of PPI those months are roughly correct, as our total PPI paid is close.

 

To sum up -

ME:

TOTAL PPI PAID: £685.41

COMPOUND INTEREST: £1576.22

8% SIMPLE INTEREST: £458.07

 

HSBC:

TOTAL PPI PAID: £679.49

COMPOUND INTEREST: £332.40

8% SIMPLE INTEREST: £354.12

hsbc cc.pdf

[citizenB]

I will send out an S.O.S for you.

[ims21]

Hi

 

What I would do is ask them for the detailed breakdown, premium by premium to include their detailed interest calculations. You can then compare their individual items against yours.

 

It seems that your spreadsheet is filled in correctly so you will really need their detail to see where the differences lie.

[shaniannie]

Thank you for your speedy replies

 

I will write another letter asking again for their breakdown. I did ask in the last letter I sent them, but in true HSBC style, they chose to ignore that bit. (I said: I would appreciate it if you gave an exact breakdown of redress in your next letter, including the compound interest rate used in the calculation)

[ims21]

Yes they are required to provide the breakdown if requested.

 

There are documented cases on the fos website for this so you are quite within your rights to receive it.

[shaniannie]

I'm glad to hear that.

 

I hope you don't mind, but I'm using some of your wording ims.

 

This is the letter:

 

Further to your letter dated 11th August, I am writing to you again regarding the payment protection insurance on my account.

 

I asked in my last letter for an exact breakdown of redress and you did not supply this. My own calculations and HSBC’s calculations are widely different.

 

Because of this, I ask again for a detailed breakdown, premium by premium to include your detailed interest calculations, as per the documented cases on the FOS website.

I look forward to your full and prompt response to this letter. I give you a further 2 weeks to fulfil this request or I shall be contacting the Financial Ombudsman to investigate my complaint.

 

Yours faithfully,

[ims21]

Because of this, I ask again for a detailed breakdown, premium by premium to include your detailed interest calculations, as per the documented cases on the fos website.

 

I'd change this paragraph to read...

 

"I require you to provide a full itemised breakdown of your calculations showing the amount of each premium paid, and interest calculations on each premium, both contractual and the 8% where applicable. You should also provide the contractual interest rate(s) used in your calculations for each premium.

 

I am aware that fos would consider this a reasonable request and should you not provide this information then I will be asking fos to intervene to get this information released to me."

 

 

Then I think you are good to go

[shaniannie]

Fabulous, thanks very much for your help ims, I'll keep you updated

[007coot]

This may be a silly question, I'm still learning myself but on your spreadsheet did you put the end date as the date the account closed or is it still a running account? Only ask as that makes a huge difference to the compound interest I think!?!? I got all excited when I first did mine then realised I needed to put in end date and interest was a lot lower

 

Please feel free to remove/correct this post if I'm wrong Ims, I'm just testing the water to see if my "schooling" is paying off lol!

[007coot]

This may be a silly question, I'm still learning myself but on your spreadsheet did you put the end date as the date the account closed or is it still a running account? Only ask as that makes a huge difference to the compound interest I think!?!? I got all excited when I first did mine then realised I needed to put in end date and interest was a lot lower

 

Please feel free to remove/correct this post if I'm wrong Ims, I'm just testing the water to see if my "schooling" is paying off lol!

 

Yes COMPLETELY ignore me! just viewed your spreadsheet which I didn't spot earlier. Not the same as the one I used. Sorry

[shaniannie]

Just wanted to give an update on this

 

HSBC didn't play ball, so I went to the Ombudsman, which as we all know this takes time. Fast forward to the beginning of this year and HSBC were told off for not calculating it properly.

 

So to recap, first offer was for £645.00

Second offer was for £1366

 

Just got an offer, which is being accepted, for £5238

 

 

Just goes to show the banks still aren't playing fair and you have to go to the Ombudsman to enforce the rules!!!

 

Many thanks for everyone who gave me advice along the way

[allison6564]

thats great news and well done!!! I am just in the begining of a claim that has had to go to FOS as HSBC wouldn't uphold. Benn with them since about 1992..have EVERYTHING with them including business etc ....not going to give up though...we've always been self employed too.