Employment status and credit card PPI

NickF83

Wondering if anyone can help with this pickle involving my employment status with regard to PPI on a credit card? Any views welcomed...


I took out a credit card with Lloyds TSB in late 2008 at a time when I was unemployed after finishing university. I still had regular income into my account and also decent balance in my current account, hence I could make repayments and have done so ever since. Having been made aware of PPI and how widespread the mis-selling was, I decided to check last week if indeed it was on my credit card, which it was. I had no knowledge of this and certainly would not have needed it when applying for the card, given my employment status, if my understanding of it is correct?

I have therefore registered a complaint with Lloyds who have duly written to me saying they are investigating the claim.

I was therefore wondering if, given that I was unemployed at the time, how this will affect my claim? My understanding is that PPI is useful to protect repayments against potential loss of income, so with me being unemployed, it would have had no value to me?

When speaking to an advisor on the phone at Lloyds, I stated this fact to her. I am worried this was a mistake. My worry is that the bank will somehow claim that I did not tell them I was unemployed or something similar to avoid a payout.

If anyone can shed any light on how these circumstance will affect any claim, if at all, I would be very grateful.

NickF83

Also, would it now be advisable to cancel the PPI? I have not done this as of yet as I didn't want to change anything until the claim has been made.

McKneff

NickF83 wrote: »

Wondering if anyone can help with this pickle involving my employment status with regard to PPI on a credit card? Any views welcomed...


I took out a credit card with Lloyds TSB in late 2008 at a time when I was unemployed after finishing university. I still had regular income into my account and also decent balance in my current account, hence I could make repayments and have done so ever since. Having been made aware of PPI and how widespread the mis-selling was, I decided to check last week if indeed it was on my credit card, which it was. I had no knowledge of this and certainly would not have needed it when applying for the card, given my employment status, if my understanding of it is correct?

I have therefore registered a complaint with Lloyds who have duly written to me saying they are investigating the claim.

I was therefore wondering if, given that I was unemployed at the time, how this will affect my claim? My understanding is that PPI is useful to protect repayments against potential loss of income, so with me being unemployed, it would have had no value to me?

When speaking to an advisor on the phone at Lloyds, I stated this fact to her. I am worried this was a mistake. My worry is that the bank will somehow claim that I did not tell them I was unemployed or something similar to avoid a payout.

If anyone can shed any light on how these circumstance will affect any claim, if at all, I would be very grateful.

Claim by all means but I cant see how you can say you were unaware of it being there when it would have been printed as a seperate item on every single statement you received since you took the card out.

I'm actually surprised you were even able to get a card whilst you were unemployed unless you lied on the application. Because the question of employment would have been there.

Bt my one peice of advice to you is always be truthful when doing anything like this, if they ask you if you were unemployed reply truthfully, it hasa way of coming back and biting you in the butt.
I'm no expert so cant say whether, given the circumstances whether your claim would be successful or not.

Good luck.

NickF83

I have had this discussion about the fact that it has been on there for some time with a friend of mine. He stated that if it was on there, I should have noticed and therefore asked for it to be removed. Whilst this may be true, I thought a key distinction needs to be drawn at this point.

The issue is not the length of time that it has gone unnoticed, as that could be any arbitrary figure, the key point is, was it added without me requesting it.

If it is the latter, as I believe it to be, then the responsibility does not lie with me to request its removal, but conversely, lies with Lloyds to not have added it in the first instance.

To place the blame on me is to miss the point entirely.

timmybear

Hi, how did you get the C/card if you were unemployed? Conditions of taking the card out usually dictate a minimum of X hours a week.

NickF83

the honest answer is that I can't remember the exact detail of the conversation, given that it was over the phone in 2008. From memory, I think that they checked if I had regular income into my current account, which I did, but I was not actually employed. Either way, the outcome was that I received a card and have now notified them that at the time, I was unemployed, so they have the facts.

To my knowledge, it is still possible to get credit cards if you are unemployed, as there are other factors that are considered when assessing someone's capacity to make repayments. (savings, etc)

manama

Lots of students were given a credit card..my friend had one from her bank as soon as she went to uni. Dont know if that helps you?

amersall

NickF83 wrote: »

Also, would it now be advisable to cancel the PPI? I have not done this as of yet as I didn't want to change anything until the claim has been made.

When you do the mis sell claim they will cancel the ppi.

Look here for reasons you may have been mis sold.
http://www.moneysavingexpert.com/reclaim/ppi-credit-card-insurance#step2

http://www.lloydstsb.com/payment_protection_insurance_complaints.asp
You can do this over the phone.

Just to add my twopenneth a friend of mine was given a £5000 loan with Halifax 8 years ago and he was unemployed, but had "means" of paying it back, so go figure!!.