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HSBC PPI Claim

Payment Protection cover can be a viable and useful insurance product that protects the policyholder from financial hardship, but it can also be expensive and provide limited value to the customer. The policies have also been widely mis-sold leading to a significant rise in HSBC PPI claims and claims against other lenders.

The cost of payment protection insurance varies depending on the financial product to which it is attached. PPI can be sold alongside loans, mortgages and credit cards. On loans the cost is typical applied as a lump sum and calculated as a percentage of the loan amount. Typically, this may be around 13%-25%. On a £15,000 loan, therefore, you may expect to pay between £1,950 and £3,750 for payment protection.

It is important to note that taking out loan PPI could significantly increase your overall debt. The insurance usually attracts interest at the same rate as the initial borrowing. If the full costs were not clearly explained to you at the point of sale you may be entitled to make a HSBC PPI claim.

The cost of credit card payment protection cover is ordinarily charged on a monthly basis. The cost of the cover varies depending on the customer’s credit card balance. The cost of the cover varies from lender to lender, but is approximately 79p per £100 outstanding. If you owe £15,000 on your credit card, therefore, you could pay in the region of £118.50 per month for payment protection insurance. If your balance increases or decreases the cost of the PPI will fluctuate, but if your balance stayed constant at around £15,000 for a whole year it is likely to cost in the region of £1422.00.

Again, your lender should have explained the costs associated with your credit card PPI policy in detail. If this did not happen you could make a HSBC PPI claim.

In addition, to the high costs sometimes associated with payment protection insurance the rate of payouts can be quite low. An investigation by The Competition Commission in 2008 found that just 15% of customers who tried to use their loan PPI policies were suitable successful. This means that 85% of customer claims were rejected. It also means that for every £100 spent on loan PPI lenders could, potentially, be making up to £85 in profit! The Competition Commission’s findings for credit card payment protection cover were even worse with just 11% of those trying to use their policy receiving a payout. In light of these figures, it is clear that payment protection cover can represent poor value for money for the customer.

If the full cost of your PPI policy was not explained or you believe the cover was mis-sold you in some other way, call our claims team on 0207 471 2000. We work on a no win no fee* basis and could resolve your claim in just two months. We can also assist you with claiming back bank charges. For more information call the team today.


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Belmont Thornton Ltd. is regulated by the Ministry of Justice in respect of regulated claims management activities; our registration is recorded on the website www.claimsregulation.gov.uk number 18273

Belmont Thornton Ltd. is incorporated in England and Wales, Company number 6621233, whose head office and registered office is at Suite 2, Unit 25, The Coda Centre, Munster Road, London, SW6 6AW. VAT Registration number 945 3375 06.

Belmont Thornton Ltd is registered with the Information Commissioners Office to ensure compliance with the Data Protection Act 1998 registration number Z1728023 and holds a Credit Consumer License issued by the Office of Fair Trading license number 634655.

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.