Payment Protection Insurance (PPI) is an insurance product that provides cover for the monthly reimbursement of your loan if you lose your job, get involved in an accident, fall sick, pass on or if you face other conditions that may stop you from earning income to repay a debt.
HSBC had five main products under Payment Protection Insurance, they included:
Personal Loan Protection Plan
The Personal Loan Protection Plan was aimed at existing and new HSBC clients. The policy covered the debt on individual personal loans in the event of death, disability or sickness. The Personal Loan Protection Plan offered flexibility allowing the client to choose the cover that met their individual requirements.
Cardholder Repayment Plan
In the event of death, Cardholder Repayment Plan would make sure that the credit card repayment was taken care of by HSBC. The parents, relatives or anyone close to the client would not pay for the credit card debts.
Flexiloan Repayment Protection
The Flexiloan Repayment Protection was offered in case one became sick or injured and could not work, or suddenly lost their job. Premiums were calculated on the balance due on the Flexi Loan at the end of each statement phase and were automatically charged to the Flexi Loan.
Mortgage Repayment Protection
The Mortgage Protection Plan provided the client with insurance to repay their mortgage in the event of death, so that in case a misfortune happened, the client’s family would have a place to live.
Small Business Loan Protection
The Small Business Loan Protection was an insurance policy set to pay off any small business loans in the event of the client’s death.
Current HSBC PPI Status
HSBC discontinued offering Payment Protection Insurance in December 2007 in all its branches and all through the other departments of its business in the course of 2008.
Regulatory and Media agencies have had PPI products as the center of attention for the last couple of years as a result of concern that several of these policies might have been mis-sold when clients took out Mortgages, Loans or Credit Cards.
Proceeding with a PPI Claim from HSBC
Following a lawful verdict in April 2011, a set of laws set out by the Financial Conduct Authority (FCA) as regards to how firms, including HSBC, ought to deal with PPI grievances have been taken up.It is advisable to not use a claims management company but deal directly with the HSBC bank by simply writing to them including: the PPI policy about which you’re writing, the grounds on which you deem it was mis-sold and your appeal for a complete refund in addition to interest.
The complaint is expected to be resolved in the course of eight weeks during which the bank will be in touch to keep the client posted on the investigation. If the client does not get a response from the bank in the course of eight weeks after raising his grievance, they have the right to pass on their case to the Financial Ombudsman Service.
Details of the amount of time taken to resolve complaints relating to PPI have been published by the FCA and are readily available on the FCA website.