Possible strange PPI claim

gbhxu

Just found a box with some old credit card statements in and discovered that even with an ongoing PPI claim going on, I was still paying my PPI premium.

Do I have a claim that because my PPI premium varied according to the outstanding balance each month, any PPI payment made to my credit card company, should have been based on the outstanding balance for that month rather than when the claim was first made?

i.e. when I first made my claim on my PPI insurance, my outstandong balance was about £1000, therefore I recieved about £50 a month PPI payout to my credit card compnay.

10 months later, when my credit card balance was about £8500, I was still only getting the £50 a month paid to my credit card despite paying still paying PPI (about £67) on the balance of £8500!

!

roonaldo

are you saying the claim amount was less than the minimun payment?

dunstonh

The figures are correct. If you were getting paid on the basis of the balance after a claim then you could go off spending money as much as you wish knowing the insurer would pay it off. Hence why its based on your balance at point of claim.

Indeed, just as happened in your case where you spent £7500 on your card in 10 months

src007

gbhxu wrote: »

Just found a box with some old credit card statements in and discovered that even with an ongoing PPI claim going on, I was still paying my PPI premium.

Do I have a claim that because my PPI premium varied according to the outstanding balance each month, any PPI payment made to my credit card company, should have been based on the outstanding balance for that month rather than when the claim was first made?

i.e. when I first made my claim on my PPI insurance, my outstandong balance was about £1000, therefore I recieved about £50 a month PPI payout to my credit card compnay.

10 months later, when my credit card balance was about £8500, I was still only getting the £50 a month paid to my credit card despite paying still paying PPI (about £67) on the balance of £8500!

!

I bet this was Lloyds TSB? (I have psychic powers).

In a way this the insurance did its job as it covered some of your payments. However a 5% monthly payout is quite poor (most credit card PPI pays out 10%). Its 5% because you balance at the time of claiming was £1000. Other card companies would have paid out £100 per month.

The Financial Ombudsmans Service take the payout rate as a factor in their investigation, so you would actually have a chance of success with a complaint.

The amount of your claim on the policy would be deducted from a refund if successful, which is only fair.

Although Dunstonh makes a good point in that you can't expect the card company pay a % of the extra balance if you're spending greatly on the card.

gbhxu

I bet this was Lloyds TSB? (I have psychic powers).

Yes

In a way this the insurance did its job as it covered some of your payments. However a 5% monthly payout is quite poor (most credit card PPI pays out 10%). Its 5% because you balance at the time of claiming was £1000. Other card companies would have paid out £100 per month.

Could have been 10% on a £500 balance I can't remember

The Financial Ombudsmans Service take the payout rate as a factor in their investigation, so you would actually have a chance of success with a complaint.

The amount of your claim on the policy would be deducted from a refund if successful, which is only fair.

I'm not thinking of recovering the cost of PPI but that the actual repayments made by the PPI should have been larger!

Although Dunstonh makes a good point in that you can't expect the card company pay a % of the extra balance if you're spending greatly on the card.

Yes I do!

My arguement is the fact that I was paying PPI on a month by month basis. Any PPI payment I made was based on that months outstanding balance.

src007

I personally think you have a much better chance of a refund, if you make a mis-selling complaint.

The terms and conditions of the policy (which you agreed to) would have said that the policy pays out a percentage of:

- the balance at the time of claiming -

The mis-selling complaint would be that the low payout % wasn't made clear to you at the time of the sale.

I don't think you were treated unfairly during the CLAIM (as they honoured the claim on the terms that were agreed). I think it's more likely that you were treated unfairly at the SALE because they weren't selling a suitable product (although this will depend on other factors as well).

What highlights the poor value of Lloyds product, is that at one stage whilst using the insurance you were paying £67 for PPI whilst it was only paying you £50. Madness. What pointless cover!

Its a free country though and you are allowed to complain about what you like.