MBNA PPI upheld - advice needed

backuphdd

Hello,

(Long post, sorry!)

My PPI complaint to MBNA (dating back to the early-mid 90’s) appears to have been successful as they have written to me to say that it is being upheld and they have in fact also sent me a cheque for a little over £600. There are however a couple of points in their letter that I do not fully understand and I was wondering if anyone has any experience with this / can explain to me what it all means?

In the letter MBNA say that there is “a period of missing data affecting the calculation” and that they “have therefore made an assumption regarding the transactions you made between”….these dates (Jan 1995 and June 1995). They also say that “this info has been incorporated into the refund table below”.

They go on to say “We have assessed whether any fees applied to your account may have been linked to PPI. Most fees are not attributable to PPI, for example our system operates so that the cost of PPI is only added after any overlimit fee is applied. However, as a gesture of goodwill any fees charged where PPI may have been a contributing factor have been refunded together with associated interest.”

There then follows a breakdown of the figures, followed by “*As commission was a percentage of the PPI premiums, the total amount of PPI includes any commission MBNA received.”

My questions are….

1. The assumption regarding transactions during the “period of missing data affecting the calculation” and that “this info has been incorporated into the refund table below”….Any idea how they would calculate this? Does this sound right?

2. “….for example our system operates so that the cost of PPI is only added after any overlimit fee is applied.” What does this mean? (It sounds like they are saying PPI is only charged if I go over my credit card limit!?! Surely this can’t be right?)

3. “However, as a gesture of goodwill any fees charged where PPI may have been a contributing factor have been refunded together with associated interest.” This is the bit that first bothered me. Surely I am either owed a repayment or not? How is this “a gesture of goodwill”?

Does any of this sound right? I didn’t think this would be calculated based on estimation (i.e. an assumption). Saying that the PPI fees are only added after any overlimit fees, confuses me. And finally, the idea that this repayment is a “gesture of goodwill” confuses and bothers me!!

Not sure whether I should just accept and cash the cheque or if I should be following this up with some questions? Any thoughts or advice re this would be greatly appreciated.

Thanks.

Bermonia

The redress you have been offered is defined... there is nothing untoward and no one is going to get you more money.

Take the win and accept... keep in mind as they have considered it a gesture of goodwill, this offer can be withdrawn if not accepted.

-taff

backuphdd wrote: »

1. The assumption regarding transactions during the “period of missing data affecting the calculation” and that “this info has been incorporated into the refund table below”….Any idea how they would calculate this? Does this sound right?

They should calculate it by reconstituting your account using the data they have for the rest of it. You had six months of data missing. What was the preriod covered by your complaint?

backuphdd wrote: »

2. “….for example our system operates so that the cost of PPI is only added after any overlimit fee is applied.” What does this mean? (It sounds like they are saying PPI is only charged if I go over my credit card limit!?! Surely this can’t be right?)

No, it means it was added after any over limit fee was applied, not before. So if you went over your limit, the PPI was added after the fee, they did not apply PPI first which would cause the card limit to be breached.

backuphdd wrote: »

3. “However, as a gesture of goodwill any fees charged where PPI may have been a contributing factor have been refunded together with associated interest.” This is the bit that first bothered me. Surely I am either owed a repayment or not? How is this “a gesture of goodwill”?

No one is OWED a repayment. You make a complaint that the PPI was missold. In your case, they haven't upheld a complaint, but returned your PPI as a gesture of goodwill. If you want to reject this payment, then you go to the FOS.

backuphdd wrote: »

Not sure whether I should just accept and cash the cheque or if I should be following this up with some questions? Any thoughts or advice re this would be greatly appreciated.

If you want to reject this payment, then you go to the FOS.

dunstonh

A small figure of £600 is likely an auto-payout. Hence why it is showing as a goodwill gesture. This means your complaint hasnt been investigated. If you go to the FOS, it will be investigated and its possible that the FOS will reject your complaint which means MBNA wont have to pay you the £600.

Many banks/lenders have or had operated a floor limit where they auto-payout amounts below a certain value whether there is a case to answer or not.