RBS Recommended box on credit card application form

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I took out a RBS credit card many years ago and it was at a time when i was not aware of what PPI was. I applied for the card via the post and don't remember ever seeing a leaflet with the form explaining PPI. There was a box on the form for PPI All it said was optional but in brackets it said "RECOMMENDED" so i ticked it as took it that they knew what they were talking about :-)
I was going to make a claim as one it was never explained to me what PPI was but i am also of the view that because the words "RECOMMENDED" was on there it would be advising the person applying for a credit card that they recommend you take it out but of course because the word was on every application form it did not take into consideration the individuals circumstances. For example i could have been self employed and i would still be reading it as PPI being recommended. I could be in full time employment with say £40000 in savings so would PPI of been suitable for me? Surely it is wrong that the word "RECOMMENDED" was on every credit card application regardless of the persons circumstances. Im my eyes an advisor is not verbally recommending you take PPI out but being on their form is just the same. It is them recommending something without knowing the applicants circumstances. Is it worth claiming?

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  • tomtontom
    tomtontom Posts: 7,929 Forumite
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    Were you self employed, did you have £40,000 in the bank?

    PPI was suitable for many people, it is recommended that you have insurance in place in case of financial difficulty. For what reason was PPI unsuitable for you?
  • dunstonh
    dunstonh Posts: 116,655 Forumite
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    edited 8 June 2016 at 4:49PM
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    The FOS have been looking at these and it depends on the strength and style of the wording. The word "recommend" does not turn it into a recommendation. You can recommend someone looks at the risks and addressing the risks without actually recommending a product. FOS decisions on an RBS postal applications have been rejected using your argument.

    http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=108149
    http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=38277 - this one is interesting. Not for the complaint but because the same template response is used for many rejections on RBS postal applications. So, it appears the FOS have a template response for these.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Lunatic_Flea
    Lunatic_Flea Posts: 14 Forumite
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    Without getting the paperwork out it said it was optional but "RECOMMENDED"

    Not we "Recommend" you look at PPI to see whether it is suitable etc

    Not everybody is fully aware of payment protection plans and if an institute is recommending you take something out then a lot of people will put their trust in them and tick yes.

    I am embarrassed to say i was not aware of what PPI was until i was in my 30's. Some of the onus will lie with the person applying but with a lot of contracts a large percentage don't read the small print
  • societys_child
    societys_child Posts: 7,110 Forumite
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    Some of the onus will lie with the person applying but with a lot of contracts a large percentage don't read the small print
    Who's fault is that :huh:
  • -taff
    -taff Posts: 14,593 Forumite
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    Better reasons are if you could have paid off the card with savings, or good sickness payemnts etc
    Because you read a leaflet with Recommended on it, doesn't recommend it.

    You can still complain, and then go to the FOS if youre unsuccessful, but hold out no hope and you may be surprised.
    Shampoo? No thanks, I'll have real poo...
  • takman
    takman Posts: 3,876 Forumite
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    I think the lesson you should take away from this is that you shouldn't sign up to something you don't understand!. The first time I applied for a credit card and they offered me PPI I did some research and realised I didn't need it and chose not to have it!.
    There was nothing stopping you doing this!
  • Lunatic_Flea
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    Hi I was never the best were finances were concerned (this was several years ago) but more aware now and yes read the small print on everything. This obviously led me to signing for something i was not fully aware of. My main point is how can RBS recommend something regardless if verbally or in written form when they know nothing about the individual. I went along with their recommendation which i know was in hindsight stupid. Not everybody is great were contracts/applications are concerned. I bet the design of these application forms was stopped or re-worded years ago
  • Lunatic_Flea
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    There was no leaflet just a very small section about 1 inch square on the application form which said something like Do you wish to take out PPI? Optional then in brackets (RECOMMENDED)

    Several years ago and at the time i did not know what PPI was so just thought they are recommending it so ticked the box.

    I am fully aware i have to take responsibility but so do the bank and i am off the view this word "RECOMMENDED" should not have been on the application form and nothing will change my view on this. Do you see forms designed like this anymore?
  • dunstonh
    dunstonh Posts: 116,655 Forumite
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    My main point is how can RBS recommend something regardless if verbally or in written form when they know nothing about the individual.

    From my understanding of the FOS decisions with the word recommend, they recommend you have adequate protection. i.e. the recommendation is generic and not for a product. However, they go on to say they have an optional product if you want it.

    Advice is actually recommending a product. They are not doing that.
    I bet the design of these application forms was stopped or re-worded years ago

    It was as they stopped offering it. So, they would redesign it. However, the FOS know what the designs are have reviewed postal applications from over 10 years ago.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Lunatic_Flea
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    Thankyou for all your help
This discussion has been closed.
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