Capital One PPI question

cheredenine

Hello all - i have a question i'm not sure is covered here:

I had a Capital One credit card from around 2002 until 2010 on which i was paying for PPI until I cancelled the cover in 2008. I was not planning on trying to reclaim the PPI payments as i didn't think i fitted the criteria; that is until i heard that how the premiums are charged might be grounds for the cover being mis-sold.

Basically - I foolishly agreed to take the cover from what i remember, but didn't realise that as the PPI premiums were charged to the card account before interest was calculated, i was then actually paying interest on the PPI as well. I understand that this isn't right and, given i didn't realise it was happening, constitutes mis-selling.

Have i got this correct? I have already approached Capital One for details of all charges and received a large envelope of paperwork back...

Thanks!

dunstonh

that is until i heard that how the premiums are charged might be grounds for the cover being mis-sold.

single premium PPI is a reason that frequently results in some kind of redress. However, credit cards never have single premium PPI as its based on the outstanding balance you do not pay within the interest free period.

didn't realise that as the PPI premiums were charged to the card account before interest was calculated, i was then actually paying interest on the PPI as well. I understand that this isn't right. i didn't realise it was happening, constitutes mis-selling.

Nothing wrong with that. It does not make it mis-sold.

You will need a better complaint reason. Cap One have a low success rate on complaints and a low overturn rate at the FOS. They handle complaints fairly in general. So, in that respect you are fine. Just that your reason for complaint is not a valid reason.

-taff

If you applied by post too you will have a very slim chance of your complaint being upheld, also if you agreed to the premium over the phone [with no reasons why it shouldn't have applied].
The FOS will side will Capital One in those cases [ or at least have up till now]

[Deleted User]

cheredenine wrote: »

Have i got this correct?

No, you are confusing single premium loan PPI with legitimate interest charges on the balance of your credit card. Remember, if you paid the PPI element each month then no extra interest would have been applied to it. It's not a valid mis-selling reason.

The "package of charges" you've requested from the Bank are also largely useless to you since, if you complain about the PPI and are successful, all the PPI you paid will be refunded to you with 8% simple interest.

Read the correct complaint procedure here;

http://www.moneysavingexpert.com/reclaim/ppi-credit-card-insurance

Don't be requesting the agreement though, it's not required and is not available to you anyhow...