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When I took out my mortgage loan from HSBC in 2001, I was recommended to purchase the income protection plan that covers critical illnesses and not redundancy. After the 14 days cooling period, I had 3 to 4 financial reviews with 3 HSBC financial planning managers over 10 years. I told them in all the reviews that the policy was too expensive and wished to remove from the mortgage loan package. They said no as it was tied to the mortgage loan and even when I first approached the bank for the mortgage, they insisted that the insurance is necessary or else the loan would not be approved. I was not given any options for a cheaper plan from other insurance providers.
I had written to HSBC and FOS. I was disappointed with HSBC reply - staff had left the bank and could not obtain more information to support my complaint. I paid £114 monthly from June 2010 till Jan 2010 when there was no income protection at all because I was made redundant and not a full-time employment, but a pensioner. My disposable income had greatly reduced. I went to HSBC again in June 2007 and they still insisted that the mortgage was tied to the income protection plan and could not be removed or cancelled. When the media splashed the news about banks' PPI scandals, I phoned HSBC again in early Jan 2010 and they cancelled on the phone immediately.
FOS said that the logbook did not have evidence of my request for removing the protection plan. It was all face to face reviews and the logbook with reports, etc... were not shown to me at anytime by the financial planning managers. Also, FOS said that I could cancel because of the cooling period and claim in the first 7 years. I could not find anywhere in the loan or protection plan document that highlight cancellation of the policy anytime after the cooling period. The right to cancel tick box was for the 14 day cooling period and there was nothing in their policy guidance or leaflets about cancelling the policy after the sale. I have to take the plan because I have no choice and needed the mortgage desperately. HSBC was the only high street bank that offered me the mortgage under the housing association scheme then. I felt deceived by the bank because the staff refused to listen when there was change in my circumstances.
A) How could I claim back when there is proof that there was loss of income without full time employment after May 2007? FOS insisted that the bank has no proof of my request to cancel after the cooling period. All the reveiws were face to face and I was not shown the logbook contents and reports. I believe no one in the bank will insert anything illegal into the logbook if he or she intended to act inappropriately during the sale - must purchase the income protection plan in order to secure the mortgage loan.
B) What else can I prove to FOS while HSBC is in denial of the mandatory purchase of the income protection plan for critical illnesses?
Hope someone could provide me with some answers. This is becoming so stressful when the adjudicator mentioned that he was not present in all my discussions in the bank and hence could not comment on the discussions, but based only on the logbook contents. I felt that this is pointless to mention to support his findings. In statistics, how many customers will invite a FOS representative to be the witness in the process of mortgage / personal loan applications? I have not seen anywhere on their website or their leaflets that FOS is able to provide this service.
Many thanks.
I had written to HSBC and FOS. I was disappointed with HSBC reply - staff had left the bank and could not obtain more information to support my complaint. I paid £114 monthly from June 2010 till Jan 2010 when there was no income protection at all because I was made redundant and not a full-time employment, but a pensioner. My disposable income had greatly reduced. I went to HSBC again in June 2007 and they still insisted that the mortgage was tied to the income protection plan and could not be removed or cancelled. When the media splashed the news about banks' PPI scandals, I phoned HSBC again in early Jan 2010 and they cancelled on the phone immediately.
FOS said that the logbook did not have evidence of my request for removing the protection plan. It was all face to face reviews and the logbook with reports, etc... were not shown to me at anytime by the financial planning managers. Also, FOS said that I could cancel because of the cooling period and claim in the first 7 years. I could not find anywhere in the loan or protection plan document that highlight cancellation of the policy anytime after the cooling period. The right to cancel tick box was for the 14 day cooling period and there was nothing in their policy guidance or leaflets about cancelling the policy after the sale. I have to take the plan because I have no choice and needed the mortgage desperately. HSBC was the only high street bank that offered me the mortgage under the housing association scheme then. I felt deceived by the bank because the staff refused to listen when there was change in my circumstances.
A) How could I claim back when there is proof that there was loss of income without full time employment after May 2007? FOS insisted that the bank has no proof of my request to cancel after the cooling period. All the reveiws were face to face and I was not shown the logbook contents and reports. I believe no one in the bank will insert anything illegal into the logbook if he or she intended to act inappropriately during the sale - must purchase the income protection plan in order to secure the mortgage loan.
B) What else can I prove to FOS while HSBC is in denial of the mandatory purchase of the income protection plan for critical illnesses?
Hope someone could provide me with some answers. This is becoming so stressful when the adjudicator mentioned that he was not present in all my discussions in the bank and hence could not comment on the discussions, but based only on the logbook contents. I felt that this is pointless to mention to support his findings. In statistics, how many customers will invite a FOS representative to be the witness in the process of mortgage / personal loan applications? I have not seen anywhere on their website or their leaflets that FOS is able to provide this service.
Many thanks.
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