HSBC PPI complaints
In 2006 the Office of Fair Trading investigated the bank charges applied by banks and credit card companies for over the limit and late payment fees on credit cards. The investigation followed widespread criticism of these kind of charges after it was discovered some lenders were charging up to £35 on each separate occasion a customer exceeded a limit or made a late payment. The charges were seen as a tax on the most financially vulnerable as they were often applied repeatedly causing customers to fall into increasing levels of debt.
Following their investigation, the Office of Fair Trading announced that the maximum charge applied for late payment and over the limit fees should be £12. This took into consideration the cost of staffing and postage plus some contribution to the maintenance of IT systems. Since the investigation most lenders have lowered their fees and customers who have paid excessive charges in the past now have the right to make a complaint and potentially receive a refund.
In the same year that the Office of Fair Trading investigated credit card charges they, along with the Financial Services Authority, also investigated the sale of payment protection insurance. Their investigations revealed widespread failings with the way in which PPI had been sold and several major lenders were given fines.
Since the payment protection investigations there has been a sharp rise in the number of unhappy customers making claims, include HSBC PPI complaints.
For many years there seemed to be some reluctance from lenders with regard to PPI complaints, but, following an unsuccessful High Court challenge of new Financial Service Authority rules, recently there seems to have been a shift in attitudes. Most of the major lenders have announced they are to allocate funds to investigate complaints and pay compensation with HSBC allocating £269 million.
If you need assistance making a HSBC PPI complaint or are interested in reclaiming PPI or unfair bank charges from any lender call out team on 0207 471 2000.
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