Refusal of PPI claim from Shop Direct

Jnty11

Hi, I recently wrote to shop direct on behalf of my Grandmother to reclaim PPI for her. They sent back a questionnaire to fill in, I thought it was a sure thing as she has been on State Pension Credit and disability benefits from the time the insurance was applied to her account. She cannot remember if it was just applied or if they rang and sold it to her. They have replied saying the following

"I would begin by explaining that PPI, known internally as Account Cover Plus (ACP) was offered and applied, with the first premium being charged on 14th August 2000. Provided at the time was a description of the product, including benefits and exclusions, along with the cancellation procedure and the basis for calculation of premiums.

Following the sale, policy documents were issued outlining the terms and conditions, including your right to cancel the insurance at anytime. The documents advised that ACP is charged to each statement with an account balance. This continues until you actively cancel the policy.

As per your request in your completed questionnaire, ACP has now been cancelled. The benefits have ceased and no further premiums will be applied to the account.

I note your comments that you believe you did not need the insurance as you were receiving a state pension and would always be able to pay the account. At the time of sale, you would have been provided with a description of the product and invited to positively elect for the cover. You would have been provided with sufficient information to make an informed decision whether the policy was suitable for your needs and whether you wanted the cover added to your account. This information would have been reiterated within the policy documents, issued following the sale.

Having fully investigated your complaint I am satisfied that the correct process has been followed and due care was taken in an offer and application of ACP.

Based on the information detailed above and that held on our systems, our company does not uphold your complaint and as such no refund of premiums will be provided. Whilst I appreciate this is not the outcome you had hoped for, I can confirm this is the final response to your complaint."

As you can imagine neither my grandmother or me are happy with this response. Surely the sales team should have been asking my grandmother if she was working and when the answer was no they shouldn't have even tried to sell the product?
Should I reply asking for a copy of the sales call and a document with my grandmothers signature.

In my opinion, I think they are trying to fob her off as they owe her quite a bit of money, possibly a scare tactic?

Please help and advise,
Thanks

dunstonh

Surely the sales team should have been asking my grandmother if she was working and when the answer was no they shouldn't have even tried to sell the product?

I am surprised that question wasnt asked. The only date that matters is August 2000. So, was your grandmother working on that date?

Should I reply asking for a copy of the sales call and a document with my grandmothers signature.

There almost certainly wont be a copy of the sales call going back that far. If there was, they would have listened to it to check. Plus, it is your grandmother that is making the allegation. If the firm finds nothing wrong in its files, your grandmother needs to provide evidence to support the allegation. Documents do not require a signature.

In my opinion, I think they are trying to fob her off as they owe her quite a bit of money, possibly a scare tactic?

I am less sure that is the case. They are effectively saying that they have found no evidence of wrongdoing. That is plausible. You admit your grandmother has no recollection of how it was taken out. So, they have to rely on documents and provable facts. However, you say your grandmother is on state pension and benefits. So, if this was the case in August 2000, I would think she has a strong case as you would not reasonably expect someone retired or not working to take out such cover when it is explained.

As they have marked this as a final response, it should now be referred to the FOS with a focus on the fact your GM was retired at the time (assuming that is the case)

Jnty11

Thank you for the advice, Yes she was retired then. I will draft a letter to the FOS for her with the emphisis that she was retired.