Halifax Credit Card PPI

melorablack

cjbaps wrote: »

Here's one for clarifying...my partner recently tried to activate PPI on both a loan and credit card (both with Bank of Scotland), and was told no longer eligible (because he was self employed)...so Martins templates were completed, and sent in. After letter 1 to credit card, they have admitted mis-selling the policy and will calculate/manipulate how much they are going to refund (we still await this). However the loan PPI claim is proving difficult - they are still insisting that he was eligible for the product when he took out the loan, but copies of application form show clearly he told the staff member he was self employed (his situation was exactly the same when he applied for both products). My question is, has HBOS completely contradicted itself? Surely if he was mis-sold one, then the other one was mis-sold too? Financial Ombudsman will be hearing from us soon!!!

The policy booklet states that to claim unemployment cover when you are self employed your company needs to have completely ceased trading. So he was probably only ineligible because he hadn't ceased trading.

The sale of PPI on a cedit card is completely different to the sale of PPI on a loan, plus there could be other facters (such as when it was taken out adn how it was taken out) that meant you were successful with the card and not the loan.

As you aren't happy with the outcome of the loan, I'd go the ombudsman.

cjbaps

The self employment is the bit causing the problem. He never was a business to cease trading - he is a freelance singer, but is still technically self employed (tax returns etc). His work situation was exactly the same at time off application for both products. In November last year, work really dried up, so he was then eligible for income support. He did explain to the bank when applying for the loan the nature of his self employment - that it wasn't like a 'typical' business, but they still told him to go ahead. It seems to be a case of his word against the banks!

melorablack

cjbaps wrote: »

The self employment is the bit causing the problem. He never was a business to cease trading - he is a freelance singer, but is still technically self employed (tax returns etc). His work situation was exactly the same at time off application for both products. In November last year, work really dried up, so he was then eligible for income support. He did explain to the bank when applying for the loan the nature of his self employment - that it wasn't like a 'typical' business, but they still told him to go ahead. It seems to be a case of his word against the banks!

When was the loan taken out and how (phone or branch)?

cjbaps

melorablack wrote: »

When was the loan taken out and how (phone or branch)?

December 2007, and was done face to face in branch.

melorablack

And when was the credit card taken out? and how (was the PPI sold in branch or at activation?)

cjbaps

melorablack wrote: »

And when was the credit card taken out? and how (was the PPI sold in branch or at activation?)

Not sure about the credit card - although it was definitely in the year prior to the loan being taken out. Again, it was done 'in branch'.

melorablack

As I said earlier the sales process for cards and loans is different anyway, but the processes for each changed between 2006 and 2007 as it is. I know its not much but hopefully this helps explain why one would have been accepted and the other declined.

Probably, the sales process was "better" or more thorough and more information would have been given for the loan in 2007 than for the credit card in 2006.

My only advice really is to go to the ombudsman as you aren't happy with the outcome of your loan. Sorry I can't be of more help