[Update May 2011] So far, HSBC has set aside £745 million so far to pay back consumers who it mis-sold PPI policies to!
HSBC stopped selling PPI altogether during 2008 in light of the mis-selling scandal. However, before it stopped the sale of the payment protection insurance policies, the ‘world’s local bank’ had been providing 5 main PPI products. It is sales of these products that have resulted in many PPI claims against HSBC in recent years.
The 5 main PPI products the HSBC was selling until 2008 were:
- Personal Loan Protection Plan
- Cardholder Repayment Plan
- Flexiloan Repayment Protection
- Mortgage Repayment Protection
- Small Business Loan Protection
If you feel you have been mis-sold PPI by the HSBC, you could be eligible to claim it back, along with 8% interest.
Was I Mis-Sold PPI by HSBC?
You could have been mis-sold your policy if:
- The PPI policy was not explained fully to you at the time it was sold
- You already held an alternative policy that would have covered you
- You were retired or unemployed at the time the policy was sold to you
- You were advised by HSBC that taking the PPI policy would result in more favourable interest rates
- You were advised by HSBC that taking the PPI policy would increase your chances of a successful application for a loan, credit card or mortgage
- You were not even aware at the time you took your credit card, loan or mortgage that you had PPI!
How to Proceed with a PPI Claim from HSBC
You could, of course, deal directly with the HSBC bank yourself, by simply writing to them including:
- The PPI policy about which you’re writing
- The grounds on which you believe it was mis-sold
- Your request for a full refund plus interest
Had a Letter from HSBC?
The FSA ruled that banks had to write to the customers they’d mis-sold PPI to and advise them of the fact they may have been mis-sold, what this meant for them financially and, more to the point, what you should do to pursue a refund.
Even if you have not yet received a letter, don’t assume this means you cannot claim! The HSBC is obliged to write to people it believes it mis-sold to. But in reality, there could be thousands of consumers who do not receive letters simply because the HSBC is not yet aware that your case was mis-sold.