HSBC Possible miss-sell of Account "Benifits" reclaim?

[SXGuy]

Hi peeps.

Basically, my mother has had a HSBC account for quite some time. She mentioned to me a few weeks ago she was paying £12.50 a month, when i asked what this was for, she said, i think its a charge for using cheques and direct debits.

I told her it was strange as my bank (Barclays) dont charge for these things.

Anyway, a few days ago my mother got a letter from HSBC about these charges. Turns out they were benifits to her account. i.e Accidental Death cover, Holiday Insurance and Vehicle Recovery.

They told her that as she has turned 70, they can no longer offer accidental death or holiday insurance but will continue to give her vechicle recover for £5 per month.

Now, from what my mother has told me. She never knew it was for these things, shes always believed it was a requirement of the personal account, as a standing charge for facilities. On top of all that, a) she doesnt even own a car, b) she never goes abroad and c) she already had accidental death cover elsewhere.

My main question is, are there cases where this has been miss-sold and do you think she has a chance to reclaim?

[MrsD]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

sounds missold, I'd be having a word, does your Mum have paperwork?

[SXGuy]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

sadly not. All she has now is the most recent letter regarding changes to the fee and what they are offering in exchange. Is there a way she could request it? or would it fall under a SAR? its likely to be older than 6 years as well.

[MrsD]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

many years ago when we were really daft, we signed up for a royalties gold account with RBS (I know!) we got all sorts of fancy brochures and folders telling us all about the (not great) benefits, there was enough in there to hang them over and over again, especially since we didn't need half of it and had the other half somewhere else.

Does your Mum have any recollection of anything like that? its the sort of stuff that might get filed somewhere. we were sold over the counter at the regular branch where we banked, (you can see this was a while ago), I think an exploratory letter might be the first step and I'll ask Di to have a wee look in. I'd get it stopped now though, you could say you've just discovered it and your Mother has no recollection of agreeing to it(all true).................................

[SXGuy]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

yep, as far as i know, she telephoned them yesterday and got it cancelled. Be interested to know the best way forward from here.

[Never-In-Doubt]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

You basically write a letter to the bank explaining what you said in post 1 then request a full refund plus interest. You'd argue why the benefits were not applicable and also that you didn't even know what the charge was for. Obv do it on behalf of your mum using her words. Fire a copy off to me before you send and I'll add the necessary legals for you...

Await their reply. Then we go to FOS

[di30]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

Taking a looksie now, thanks for PM x

[di30]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

Hi peeps.

Basically, my mother has had a HSBC account for quite some time. She mentioned to me a few weeks ago she was paying £12.50 a month, when i asked what this was for, she said, i think its a charge for using cheques and direct debits.

I told her it was strange as my bank (Barclays) dont charge for these things.

Anyway, a few days ago my mother got a letter from HSBC about these charges. Turns out they were benifits to her account. i.e Accidental Death cover, Holiday Insurance and Vehicle Recovery.

They told her that as she has turned 70, they can no longer offer accidental death or holiday insurance but will continue to give her vechicle recover for £5 per month.

Now, from what my mother has told me. She never knew it was for these things, shes always believed it was a requirement of the personal account, as a standing charge for facilities. On top of all that, a) she doesnt even own a car, b) she never goes abroad and c) she already had accidental death cover elsewhere.

My main question is, are there cases where this has been miss-sold and do you think she has a chance to reclaim?

Sorry for not being here sooner SXGuy

I agree with the others here though.
The cover not being suitable to your mum, I would put in a letter. There is a template as such for this on MSE for packaged accounts, but maybe a personal letter to complain and reclaim will come back with a better outcome.

I would mention that it was assumed the charge was just standard of the account, but was not aware of benefits but now since receiving information recently it it is noted that the account is/was not suitable to her requirements because..........(reasons) Also make sure to include your mum already had adequate cover in place for accidental death cover elsewhere.
And you wish to make a reclaim since the account opened, plus any interest it attracted.

As pre-usual keep a copy of the letter etc.

[SXGuy]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

Ok thanks guys, I will get on to it in the next few days, and will send Niddy a copy before posting.

[SXGuy]

Re: HSBC Possible miss-sell of Account "Benifits" reclaim?

Ok so just spoke with my mother, have some updated info, which may change things slightly.

She rang them to cancel it, they said they would have to change her account over to a new one.

Turns out this was a HSBC Advance account. The charges for these perks were part of the account package. They wouldn't cancel them unless she switched her account.

So she has done so. However this may change the viability of a reclaim would it not?