HSBC & The PPI Scandal
The Financial Conduct Authority has introduced a 'PPI claim by' deadline of 29th August 2019.The big five banks have paid out £24bn in compensation so far and have set aside a further £32.6bn to deal with the estimated claims that will come forward during that time. Don’t delay start a free PPI check today!
What is Payment Protection Insurance?
PPI can seem like a complex product, and this was done intentionally to try and confuse customers – it’s very simple. PPI was an optional add-on that covered repayments on finance agreements such as:
- HSBC Loans
- HSBC Mortgages
- HSBC Credit Cards
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The FCA has said that it wants to see better practices. Many major providers, including Lloyds, Barclaycard and Santander have been fined for “not treating customers fairly”. If your bank has - you are likely to have a case.
PPI was initially designed to cover policy holders who were not able to meet their required monthly payments due to:
- Long Term Injury
However, many HSBC PPI policies were mis-sold to people who would never have been eligible to put in a successful claim and thus the scandal began.
How Was PPI Uncovered?
Research in 2008 showed that over 2 million people in the UK had been paying for policies that they had little to no chance of being able to claim on. More than 1 million people were believed to have been sold an insurance policy after being told that was the only way that they could be approved for credit and this was not the case.
The five big banks that have been highlighted throughout the PPI saga have spent billions of pounds to compensate those who were mis-sold the payment protection insurance.
The issues surrounding PPI were first raised as a concern by consumer magazine Which? who brought to light issues with the products value and the way it was being sold to consumers.
Despite numerous objections, PPI was still being widely pedalled all over the country. It wasn’t until years later in 2005, that the Financial Standards Authority released a comprehensive report on PPI and the shocking methods that were being used to sell them to people who were either being duped into buying policies they did not want or need or unknowingly paying for policies that had been added onto their credit card, loan or mortgage repayments without their knowledge.
Smaller firms found themselves the subject of an intense investigation and began to see that the morally corrupt methods they’d deployed to sell policies were now beginning to cost them millions of pounds in fines. In 2007 the bigger companies started to see similar fines handed down to them for their PPI failings, this included a 2008 fine for HSBC to the tune £1.09m, this was a record fine at the time but was later smashed by the £117m Lloyds fine in 2015.
HSBC have made millions of pounds from selling PPI, but past and present borrowers could now be entitled to claim their money back plus interest, by making HSBC accountable for their mis-selling.
HSBC have made millions of pounds from selling PPI, but past and present borrowers could now be entitled to claim their money back plus interest
Source: FT Graphic
Making a complaint won’t simply grant you a refund, there were plenty of people who were legitimately sold a policy who won’t be eligible for any refund. It would be very helpful if you could search for the official HSBC forms and that way you could impart as much information as possible to help the refund process. Many people don’t realise that companies keep copies of the paperwork or recorded information such as telephone calls.
Starting a Claim with PPI.co.uk Is Easier Than You Think
Let’s be honest, you may not have all the required paper work available to you, and if this is the case all is not lost. PPI.co.uk has been helping customers retrieve what is rightfully theirs for years now and during this period we’ve achieved refunds totalling over £274 million for our customers since 2007.
PPI cases are seldom the same, and some, specifically the older ones can be tough to achieve refunds on. However, it’s these cases that have defined our reputation because we can draw on our previous cases and achieve excellent results for our customers.
Because of the name we have built in the industry we have brokered a deal with all the major banks and lenders, meaning that we’re not required to submit reams and reams of paperwork; just a name, date of birth and address. Once the banks have this information they’re able to access their databases and determine if any PPI was added onto any finance taken out.
This kind of agreement is a relatively new one and is only available to select companies such as PPI.co.uk.
Why is it Important to Claim Now?
The Financial Conduct Authority has put forward its intentions to introduce a ‘PPI claim by’ deadline for 2019. The Financial Regulator wants the ruling to be confirmed by the middle of 2017 along with a public awareness campaign.
The big five banks have paid out £24bn in compensation so far and have set aside a further £32.6bn to deal with the estimated claims that will come forward during that time. Don’t delay start a free PPI check today!
PPI Claims Deadline
Mis-sold PPI Compensation claims MUST be made by 29th August 2019 under a deadline announced by the Financial Conduct Authority. If you want a refund it is important for you to act now as industry experts predict a huge surge of claims that could create a back log.
How Was PPI Sold?
HSBC was one of the leading UK banks identified as mis-selling PPI from the beginning and has been named and shamed as one of the top five leading mis-sellers. In a lot of cases, PPI was attached onto a policy without the knowledge of the customer and was being hidden away within the monthly repayments. Sales Advisors would often use underhand sales tactics in-order to sell as many policies as they could.
UK mis-sold PPI scandal statistics
£10 BillionIn payouts alone in the UK.
By 2008, 20 million PPI policies existed in the UK that’s nearly 1 in 3 of the 2008 UK population
The policies sold in a great deal of cases wouldn’t have covered the individual and would have left people unable to claim on the policy even if they needed to.
Sales advisors failed to clarify to the customer that a PPI policy was optional and they were free to opt-out or even purchase the insurance elsewhere if they wanted to.
What if my initial claim for a PPI refund was rejected?
In 2015 the Financial Conduct Authority allowed customers who had initial complaints rejected the right to appeal to the Financial Ombudsman Service. This meant that thousands of people who had claims rejected had the ability to put forward their claim again to see if they were rightly mis-sold or not. This meant that HSBC were forced to pay back thousands of PPI claims that had been rejected. We are still processing claims successfully for customers who were told they were not entitled to a refund the first time around.
People often ask, ‘how much compensation will I get?’ Every PPI policy is different and it very much depends on how long you held the policy for, you may even have multiple policies that you were unaware of.
How do I claim against HSBC directly?
If you decide to file a claim directly with HSBC to retrieve the refund of PPI payments that is rightfully owed to you, you will need to provide HSBC with as much info about your PPI claim as possible. HSBC, along with most banks, need the following information:
- Policy Numbers
- Details of the key dates in the history of the policy
- Information about how the policy was sold
- Employment status when the policy was sold
- Details of any savings or other insurances you had
- What you took out the finance for and the amount you paid off
ALL www.ppi.co.uk need is your name, date of birth and address so if you don’t have all the detail that HSBC would require CLICK HERE to start your claim.
It’s quite easy to procrastinate and put things off until tomorrow but more often than not, tomorrow never comes.
So, if you believe that you have been mis-sold PPI,
it’s important to act now before it’s too late.