HSBC Claims

Lender Information

HSBC is the sixth biggest bank in the world and its UK operation has set aside £3.9 billion to pay compensation for successful PPI claims, of which £2.98 billion has already been paid out.

The bank – and its former subsidiary HFC Bank – have been selling and mis-selling PPI for years..

HFC was fined £1.08 million by the Financial Services Authority for ‘failure to take reasonable care to ensure the suitability of its advice and discretionary decisions for its customers and failing to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems’.

HSBC has set aside £3.9 billion to pay compensation for successful PPI mis-selling claims of which £2.98 billion has already been spent.

In its annual report the bank said it had sold a total of 5.4 million policies since 2000 adding: ‘At 31 December 2017, the estimated total complaints expected to be received were 2.2 million, representing 41% of total policies sold.’

How was PPI mis-sold?

If you took out a loan, credit card or mortgage with HSBC, it is likely you were mis-sold PPI if you experienced any of the following:

  • you were pressured into buying PPI or told you must have PPI
  • you were promised a cheaper rate if you bought PPI
  • you were already covered by another policy
  • you received full sick pay from your employer
  • you were told your loan or credit application was more likely to be accepted if you bought PPI
  • PPI was added without telling you
  • you were advised to buy PPI that did not suit your circumstances or needs
  • you were self-employed, unemployed or retired but advised to buy PPI
  • you had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
  • you were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
  • it was not made clear that you would pay interest on the PPI if it was added to your loan
  • it was not made clear that the PPI would end before the loan or credit was repaid
  • the amount of commission paid on the sale was not revealed at the time

How was PPI mis-sold?

If you took out a loan, credit card or mortgage with HSBC, it is likely you were mis-sold PPI if you experienced any of the following:

  • you were pressured into buying PPI or told you must have PPI
  • you were promised a cheaper rate if you bought PPI
  • you were already covered by another policy
  • you received full sick pay from your employer
  • you were told your loan or credit application was more likely to be accepted if you bought PPI
  • PPI was added without telling you
  • you were advised to buy PPI that did not suit your circumstances or needs
  • you were self-employed, unemployed or retired but advised to buy PPI
  • you had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
  • you were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
  • it was not made clear that you would pay interest on the PPI if it was added to your loan
  • it was not made clear that the PPI would end before the loan or credit was repaid
  • the amount of commission paid on the sale was not revealed at the time
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