HSBC claim rejected

[FredT]

Hi

 

Several months ago I started a PPI claim against HSBC Bank. I had a loan with them many years back and also a credit card.

 

I am using a third party claims company and have only heard from them once to say that they had established a claim.

 

Last week they called me and said HSBC had rejected the claim.

 

 

They said they would send me some forms and were referring the matter to 'the Ombudsman'.

 

 

They asked if I was working at the time and whether I was full or part time.

 

 

I told them that I did work when I took out the loan and card and that I worked full time

(because although I worked variable hours it was always more than 16 hours per week).

 

Anyone know what might be going on here?

 

Fred

[ims21]

First off, having been here since 2007, why on earth did you use a claims company? If your claim is eventually upheld you know you are going to lose a significant proportion in fees?

 

We don't know the precise situation but if there is a liability on these accounts and they are still owned by the original lender then even if you are successful in your claim then the redress will be set off against the liability and you will still owe the claims company.

 

As to your specific question, part of the eligibility for most PPI policies were that you were in full time employment and were working more than 16 hours per week.

 

What we need to know is what were your original reasons put forward in the claim for the potential mes-sell?

 

Who is the claims company?

[FredT]

Hi

 

The claims company is Charterhouse. The original loan was for 5K taken out in 2003. It is actually my partner who is pursuing the claim. The loan was taken out by her in her own name. At the time she worked for a supermarket - approx 24 hours per week. She stopped work in 2005 following the end of maternity leave after the birth of our son who is special needs and my partner is his carer receiving carer's allowance.

 

Once she finished work she was unable to continue paying the loan and it has been in the hands of a company called BCW Group. They have been taking £20 per week from her Bank and the amount they say is still outstanding is £1,200.

 

Is she likely to get any PPI payout or should she abandon the claim?

 

Is the reason she finished work going to affect the claim in a positive or negative way?

 

I am in the process of helping her complete the forms that need to go to the Ombudsman.

 

Is she likely to end up out of pocket bearing in mind the arrears and the amount that Charterhouse will claim in fees?

 

Fred

[ims21]

First off I would be finding out who actually owns the debt/account. I am not sure whether BCW buy accounts or just administer....a quick call to HSBC would confirm what the status is. Also a check of the credit file may give some information.

 

Have you ever received a notice of assignment?

 

If HSBC still own the account then I would stop paying BCW and revert to paying HSBC directly.

 

As regards the maths, much depends on the amounts involved.

 

If HSBC still own the debt and the amount due to them is greater than the potential PPI reclaim amount then they could use their right of set off to set the refund against the account. (I assume the account has been terminated by HSBC). In that case the whole of the PPI refund could be swallowed and then the claims company will want their bit for which they will bill you and chase you.

 

If HSBC still own the account and the potential PPI refund is greater than the liability then they could use their right of set off but any excess PPI over and above the liability would come to you. In this case you could use that excess to pay the claims company.

 

If HSBC have sold the debt then no right of set off exists and the whole PPI refund would come to you and you would decide how to spend it.

 

Without figures it is impossible to see what the situation might be. Do you have the agreement and a record of all payments made? If so you could work out what the PPI refund would potentially be.

 

The fact that she stopped work wouldn't, in my opinion, affect the claim as such because what you are interested in is a mis-sell which happens at the point the loan was taken out so the focus is on that particular point in time.

 

Given the above notes regarding setting off, there is a possibility that she could be out of pocket but without more detail and figures it can't be said for sure.

 

Can you let us know the reasons given for the mis-sell when the claim was put in?

[BRIGADIER2JCS]

Hi

 

The claims company is Charterhouse. The original loan was for 5K taken out in 2003. It is actually my partner who is pursuing the claim. The loan was taken out by her in her own name. At the time she worked for a supermarket - approx 24 hours per week. She stopped work in 2005 following the end of maternity leave after the birth of our son who is special needs and my partner is his carer receiving carer's allowance.

 

Once she finished work she was unable to continue paying the loan and it has been in the hands of a company called BCW Group. They have been taking £20 per week from her Bank and the amount they say is still outstanding is £1,200.

 

Is she likely to get any PPI payout or should she abandon the claim?

 

Is the reason she finished work going to affect the claim in a positive or negative way?

 

I am in the process of helping her complete the forms that need to go to the Ombudsman.

 

Is she likely to end up out of pocket bearing in mind the arrears and the amount that Charterhouse will claim in fees?

 

Fred

 

 

 

BCW is part of the Gothia Group of companies which does purchase debts.

[Hortz]

Hi

 

The claims company is Charterhouse. The original loan was for 5K taken out in 2003. It is actually my partner who is pursuing the claim. The loan was taken out by her in her own name. At the time she worked for a supermarket - approx 24 hours per week. She stopped work in 2005 following the end of maternity leave after the birth of our son who is special needs and my partner is his carer receiving carer's allowance.

 

Once she finished work she was unable to continue paying the loan and it has been in the hands of a company called BCW Group. They have been taking £20 per week from her Bank and the amount they say is still outstanding is £1,200.

 

Is she likely to get any PPI payout or should she abandon the claim?

 

Impossible to say without knowing the reasons for complaint and rejection.

 

Is the reason she finished work going to affect the claim in a positive or negative way?

 

It has no bearing on a complaint about the original sale of the product. At the time, it is a possibility that she may have been able to make a claim (in the correct meaning of the word) on the policy, as some of them did cover circumstances where you were forced to give up work to care for a dependant. However, it is probably too late now.

 

I am in the process of helping her complete the forms that need to go to the Ombudsman.

 

Is she likely to end up out of pocket bearing in mind the arrears and the amount that Charterhouse will claim in fees?

 

Fred

 

This is why CMCs are a bad idea for people with arrears (ok they're a bad idea for anyone but especially if you have arrears). They will still want their fee even if the bank uses any possible redress to clear the arrears. Tbf they should really have warned her of this before she signed the contract. It's possible that you may be able to terminate the contract with them and do the FOS referral yourself. If not and FOS rule in your favour you could look at a complaint to the CMC on the grounds that they did not advise you that any redress would be offset against the actual debt.

 

If any redress awarded is more than the outstanding debt you will get the balance and if not it will at least reduce the balance outstanding, though it will create a cash flow problem with the CMC.

 

It's also not totally out of the question that FOS may instruct them to pay directly to you if you are in financial hardship.