Advice sought about A&L/MBNA credit card PPi

Welton

Hi All, I've read countless topics and threads on here but would still like to ask this if I can for piece of mind:

I have an active credit card account with MBNA (which was previously an A&L credit card account) and it still has the PPi cover.

My A&L card was applied for in 1999 I think but I can't remember how I applied for it (it wouldn't have been via internet then) I think I might have applied for it over the phone. When the account moved to MBNA in 2010 the PPi moved with it! I don't think I was asked if I still wanted it either.

It's a long time since 1999 but I surmise I was 'encouraged' to take out PPi as part of the application process and am now ready to start a claim.

I want to claim on the basis that I didn't really need it (could have easily sought help from Family etc if needed and in 1999 had fairly healthy savings, unlike now), I had a serious Back problem in 1998 so wouldn't have been covered if repeated and that I was most likely the victim of pushy sales techniques at the time; almost as if I had to have the PPi for the application to go through (although I cannot recall this exactly it seems likely given the evidence on this site).

I've found statements from 2004 to date so can easily provide copies if required.

Is it advisable to send a completed questionnaire to them or just phone-in based upon the reasons above? also do my reasons to make a claim sound fair?

Many thanks in advance.

dunstonh

I want to claim on the basis that I didn't really need it (could have easily sought help from Family etc if needed

That reason is not good enough. Ignoring everything else, if you say you didnt need it financially, then they will look at your sickness benefits. Family helping you out doesnt fill a financial need. Employer sickness benefits or income protection or large amounts of saving/investments are things that are considered in this area.

had fairly healthy savings, unlike now

How large? You would typically be looking at 12 months income as a suitable level. Also, if you had savings then why were you borrowing money on a credit card?

I had a serious Back problem in 1998 so wouldn't have been covered if repeated

Whilst that condition would not have been covered, it is unlikely to be severe enough to invalidate the medical coverage overall. You tend to find it is more major conditions that effectively make it impossible to claim on the medical side. A back condition is unlikely to prevent any other medical condition from being claimed on.

that I was most likely the victim of pushy sales techniques at the time;

Hold on, you said you cannot remember. So, you cant go making things up and it can be to your detriment if you do. If you make things up and are caught out telling lies then you lose all credibility. Many decisions to pay out are borderline and credibility of the complaint is looked at and the decision will go with the most credible side.

almost as if I had to have the PPi for the application to go through (although I cannot recall this exactly it seems likely given the evidence on this site).

There is no evidence to suggest such a thing.

Is it advisable to send a completed questionnaire to them or just phone-in based upon the reasons above? also do my reasons to make a claim sound fair?

Your reasons for complaint are weak and seem to be little more than a punt to see if you get lucky and as it stands, that will be what you are relying on to be successful on your complaint. Obviously, if you dont have a good reason for complaint and wish to put in an opportunistic try-it-on then so be it. However, you may wish to review your reasons for complaint to see if you do have anything more substantial.

Welton

Thanks for your detailed reply, much appreciated.

I honestly cannot remember how the card was applied for. I even tried cancelling the cover around 2006 over the phone but was talked out of it by A&L as they said the cost of the cover varies with the balance and it would be inadvisable to cancel in case the balance became high and I needed to make a claim; similarly if the balance is low then so are the PPi payments (this bit I do remember).

I had savings when I first took out the card (which I applied for to be able to order stuff securely and gain 56 days of free credit when it suited my earnings and pay days). These days the credit card is used to off load emergencies like car repairs and broken appliances - stuff I can't always cover at late notice.

Are you able to advise on my approach to the questionnaire to help my chances? do I opt for the "can't remember" approach?

I have no concrete evidence to back up my statements before but yes I did have some savings (not a years worth though) and yes I could have gotten help paying the card off if I had to so I guess all I can say is that I may have been encouraged unnecessarily to take out the PPi and this is why I came here asking for advice first.

Apologies for suggesting I had found on this site that PPi was made a condition of credit applications but I understood rightly or wrongly that many PPi policies were miss sold by making the applicant believe they stood a better chance of being successful if they took out the PPi thus not giving them a chance to review the cover properly.

Any help you can give would be great, I waited until this holiday period to begin looking into this to see any way forward but yes you are right my case is weak through lack of knowledge.

dunstonh

I honestly cannot remember how the card was applied for. I even tried cancelling the cover around 2006 over the phone but was talked out of it by A&L as they said the cost of the cover varies with the balance and it would be inadvisable to cancel in case the balance became high and I needed to make a claim; similarly if the balance is low then so are the PPi payments (this bit I do remember).

What they told you is correct. Indeed, if their computer system is good, they can use that phone call against you (unless there was a failing in the call itself).

I had savings when I first took out the card (which I applied for to be able to order stuff securely and gain 56 days of free credit when it suited my earnings and pay days).

In which case you would not have paid PPI. It is only charged when you borrow on the card outside of the interest free period.

Are you able to advise on my approach to the questionnaire to help my chances? do I opt for the "can't remember" approach?

Dont be afraid to say cant remember. A complaints handler will always be suspicious of someone that can remember everything perfectly and I have already mentioned the risks of getting caught telling lies or making things up.

I have no concrete evidence to back up my statements before but yes I did have some savings (not a years worth though)

You didnt have sufficient savings and you were not borrowing on it at the time. So, that point doesnt really matter.

and yes I could have gotten help paying the card off if I had to so I guess all I can say is that I may have been encouraged unnecessarily to take out the PPi and this is why I came here asking for advice first.

Family help is hypothetical. You may well have got it. You may not have. You had a financial need for it. So, in that respect, the sale of it is not unreasonable.

Apologies for suggesting I had found on this site that PPi was made a condition of credit applications but I understood rightly or wrongly that many PPi policies were miss sold by making the applicant believe they stood a better chance of being successful if they took out the PPi thus not giving them a chance to review the cover properly.

Just because some cases were does not mean all were. Not all PPI was mis-sold. Most was not. A significant amount was but the reasons vary. Some complaint reasons are very strong (not eligible for cover, no financial need etc). Others are complaint reasons but weak (such as unprovable allegations of what was said or done). A good proportion of PPI payouts are lucky. Auto payouts from the provider (due to workload or small value) or the provider has lost or didnt record key data.

i am not putting you off complaining. I am just positioning the issues you have with your case.

Welton

Ok thanks again, I understand there's grey areas in my complaint but then again I suppose there are in many complaints and people still gain compensation as you say; even if just out of goodwill/luck due to the many problems there were with these schemes at the time I suppose?

dunstonh

even if just out of goodwill/luck due to the many problems there were with these schemes at the time I suppose?

The issue isnt so much the product. That is reflected by advised sales, the majority of which are rejected and not overturned by the regulator. The problem is that the banks and providers didnt tend to hold onto documentation or even actually document what was said or done. That wasnt required before 2005. The FSA decided to apply modern rules to historic sales and most lenders have problems with that (which is why they went to court on the point - the FSA won not because the banks were wrong but because the FSA is allowed to do it). This created two problems. 1) a big backlog with firms warned about delays (warning results in big fine if unheeded). So, auto payouts to clear backlog became common and 2) they found in many cases they couldnt support the sale even where there was no wrong doing. Since then, the cost of dealing with a complaint has also risen. So, now it is cheaper for firms to auto payout on small amounts.

So, there are very strong chances your complaint will succeed as it is. All I am really doing is pointing out the weak areas which may give you the opportunity to focus on the stronger reasons to improve your odds.

Welton

Ok, thanks, well I'm going to send a standard questionnaire to MBNA and Santander (A&L) and see what goes.....