Question Re Consequential effect of PPI and Cardguard Mis-Selling

[Surferdan]

Hello,

After numerous letters HSBC finally agreed that the PPI on my sons credit card had been mis-sold and agreed a settlement figure. Now it has been agreed that the Cashguard protection policies were also mis-sold and my son has received the necessary form to reclaim his payments.

 

Other than the now discredited PPI and Cashguard debits on my sons CC there have been no "purchases" since mid 2005.

The spreadsheet we used to calculate the PPI redress shows that without the PPI and Cashguard my son had effectively paid off the full balance of his account by September 2009, with the minimum monthly payment set by HSBC being taken by DD from his bank account each month.

 

At the moment though despite no purchases on the card since mid 2005 and purely due to the PPI, Cashguard and overlimit charges caused by them there is still an outstanding balance on the card.

 

Am I correct in thinking that HSBC should refund all the payments made since the date when the account would have been paid off if the PPI and Cashguard had not been charged and also wipe the outstanding debt off?

[ims21]

Which spreadsheet did you use please?

[Surferdan]

V2.4 Simiantics dated 25/10/2012

 

Pretty sure I found it via a link on this site

[ims21]

Never heard of it

 

Is it a spreadsheet that reconstructs the account without the PPI and associated interest?

 

Given that the overriding consideration is that the claimant should be put back in the position they would have been in had the PPI not been charged in the first place then yes, any charges and associated interest that arose due to the PPI should come back as well.

 

From what you have said there will be a credit balance on the account post September 2009 and you should get 8% simple interest on credit balances up to the date of settlement.

[Surferdan]

Thanks for your replies,

You have confirmed my thoughts

Looks like I'm going to be writing some letters.

 

Re the Spreadsheet:-

 

You input the following:-

PPI charge per month

Other charges eg "overlimit and Cashguard"

Monthly interest rate

Monthly balance

 

We have all this detail thanks to a SAR request that contains all the info back to when the card was taken out

The spreadsheet then apportions interest to the account balance PPi etc and calculates a monthly redress value, compensatory interest and a notional balance as if the PPI had not been charged to the account.