Posted on 29 May 2009
PPI Claim Refunds
We have received a number of claims against HSBC along with other major and respected lending institutions who are alleged to have been mis-sold PPI policies linked to a loan. As PPI is usually a “secondary purchase” to a loan or mortgage borrowers are taken by surprise when confronted with a PPI advice and just go along with the sale that they must or ought to have PPI to protect them. The borrower is not given time to think about alternative methods of protection or whether they really do need the PPI policy.
The PPI sold along side a loan or mortgage are often single premiums added to the loan amount which is expensive to the borrower as it means that the borrower is paying interest on the cost of the PPI premium over the full term of the loan. PPI premiums are often loaded with commission payments making the cost of the policy even more expensive, with small print exclusions and cancellation penalties thousands of PPI policies have been mis-sold. We are making PPI refund claims against HSBC along with other major lenders on behalf of our clients as in all the circumstances it was not considered that HSBC treated their own customers fairly. If refunds are not made we will always consider taking court action if appropriate to ensure our clients are not financially prejudiced by the sale of the PPI. HSBC often respond to us by saying that the PPI has not been mis-sold. These claims are being considered very carefully and court action may be pursued where there is a denial.
A general review of PPI mis-selling has been considered by the Financial Services Authority “FSA” which does not make good reading to the industry as a whole. Many respected Banks and lenders have been fined due to the fact that they do not have appropriate systems and controls in place to ensure that their customers are treated fairly. With large commissions and bonuses paid on the sale of the PPI policies lenders often fail to monitor whether the PPI policy has been mis-sold. It is the borrower who pays at the end of the day either through the monthly repayments towards the loan or mortgage or when a claim is rejected against the PPI policy. The Competition Commission has also investigaged the sale of PPI policies. For further reading please click here.
Obviously not every PPI policy has been mis-sold and indeed if sold correctly would offer valuable protection. Every case must be individually considered on its merits. Each case is “fact sensitive” which means that as PPI redund claims solicitors we will be reliant upon what our client has said in evidence about how the PPI policy was sold in order for us to consider making a PPI refund claim. With documentary evidence in support and on occasions, the telephone recording of the sale, will provide us with a complete picture on how the PPI policy was sold. Obviously if the lender has been fined by the FSA this will help support a refund of the PPI policy.
When an event such as redundancy, loss of a job, illness or accident occurs the borrower only then finds out that the PPI policy is worthless due to exclusion clauses such as a failure to declare pre-existing medical conditions. Whilst the Financial Industry is now cleaning up its act there are still the historic PPI policies that have been sold which are costing many borrowers substantial sums for something at the end of the day are bits of worthless paper.
We are often asked what can be reclaimed or refund against the likes of HSBC and other lenders. The starting point in law is that the borrower must be put back into the same financial position as if the PPI was never sold. This means the return of all PPI payments made to lenders such as HSBC plus interest on the payments made. In addition the remaining PPI cost plus interest be waived and the loan re-written so that the future payments under the loan or mortgage reflect the reduced costs. In more severe cases where PPI was sold as a “compulsory purchase” or that the borrower had “no choice” but to take out the PPI policy alongside the loan there is also a chance that the loan itself can be written off. This is due to the Consumer Credit Laws which protect borrowers if there has been a breach of minimum requirement criteria.
If you answer Yes to one or more of the following questions you may have a claim for PPI refund -
- HSBC failed to ask me about any pre-existing medical conditions when I took out a PPI policy
- HSBC failed to ask if I was or was shortly due to become self-employed when I took out the PPI policy
- HSBC failed to ask if I was retired or very close to retirement ages when I took out the PPI policy
- HSBC failed to ask if I was not employed (including student) when I took out the PPI policy
- HSBC failed to ask if I was a public services employee when I took out the PPI policy
- HSBC failed to ask if I had other protection policies in place when I took out this loan
- HSBC failed to advise me that I did not need the PPI policy as I could have repaid the loan/outstanding balance using my savings
- HSBC failed told me that the PPI policy was compulsory and not optional
- HSBC failed to ask if I was not aware that the PPI policy was optional
- HSBC failed advise me that I would get a better interest rate or the PPI would cost much less if I took the PPI policy out with another insurer
- HSBC did not make me aware of the cost of the premiums on the PPI policy
- HSBC did not make me aware that the PPI policy cost would be added to the loan and I would pay interest on the cost
- HSBC did not make me aware that I had taken out the PPI policy when I took out the loan
- HSBC did not make me aware that I could purchase alternative PPI policies with other providers when I took out the loan
- HSBC did not make me aware that the PPI policy did not cover the life of the loan
To Make a PPI Refund Claim Click Here Now
Further Guidance
For more information on how to make a claim click here.
For more information about mortgage repossessions click here.
R James Hutcheon Solicitors
The Heath Business & Technology Park
Runcorn
Cheshire
WA7 4QX
This Firm is regulated by the Solicitors Regulation Authority
Court Action – Defending Customers
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