PPI product mis-selling by Oxendales catalogue?

impy78

Hiya all,

I just need a second opinion on this, as I believe this to be in breach of FSA regulations about paymant protection insurance.

My mother in law uses Oxendales catalogue, and she usually pays off the full balance each month, but this month she decided to pay it off in installments.

When she has gone to look at her statement, there has been a charge of £12 for a combined PPI/Life assurance been added onto her balance. She did not ask for this to be added, so she called them. They said that the product was automatically added to her account, and she had to write into them within 14 days of the statement date to cancel it, otherwise she is lumbered with it.

Now the problem is, when I did my FSA training on PPI, we were told that we had to gain explicit consent from the customers before adding it, and that we also needed to establish whether or not the client would be entitled to the cover too.

As my mother in law is retired, she wouldn't be entitled to claim on the PPI anyway, yet the onus has been placed on her to remove a product that I feel has been mis-sold, in fact, not even mis-sold as it was added onto her account without her say so.

I believe the is a clear breach of FSA regulations on PPI, but is this something which applies to insurance companies only, or any business offerring PPI cover?

dunstonh

Key point here is going to be when she signed the agreement. Was it pre or post general insurance regulation?

Did the catelogue people advise her on it or was it just an option that got included without her ticking the box to say she doesnt want it? A number of years back the box was tick if you dont want whereas nowadays its tick if you want.

It does come under FSA general insurance regulation but I wonder if its pre regulation.

impy78

dunstonh wrote:

Key point here is going to be when she signed the agreement. Was it pre or post general insurance regulation?

Did the catelogue people advise her on it or was it just an option that got included without her ticking the box to say she doesnt want it? A number of years back the box was tick if you dont want whereas nowadays its tick if you want.

It does come under FSA general insurance regulation but I wonder if its pre regulation.

No, it's only been added to her account this month, and she did not sign anything with regards to this.

So it has all happened under FSA regulation rather than GISC

Astaroth

But it would most likely have been in effect from when the account was open but as she pays in full each month it hasnt applied... could be wrong as I have never even heard of the company

impy78

Astaroth wrote:

But it would most likely have been in effect from when the account was open but as she pays in full each month it hasnt applied... could be wrong as I have never even heard of the company

Cool - fair enough, I will find out whether this is a new thing or not.