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  • FIRST POST
    • Fridlum
    • By Fridlum 13th Aug 19, 11:06 AM
    • 6Posts
    • 0Thanks
    Fridlum
    Santander PPI rejection
    • #1
    • 13th Aug 19, 11:06 AM
    Santander PPI rejection 13th Aug 19 at 11:06 AM
    I sent a PPI complaint to Santander for any accounts I have had with them since I have never knowingly taken out PPI.

    I received a rejection from one complaint saying it wasn't substantially flawed and that I would have bought the policy in any event. I don't take comfort from use of the word 'substantially' (though I suspect it is meant in some strict legal sense), and I absolutely would not have bought the policy if I had been aware of it.

    The amount is 30.55. This doesn't seem like much but presumably compound interest applies since 1998. I don't know what this would amount to today.

    As it was for an agreement entered into in-store I can only suspect it was a small-print thing that was overlooked at the time under the pressure of the situation, or that it was marked without my knowledge. This was a long time ago so I can't remember details.

    Is there any case here for taking the complaint to the FOS? If so, does the amount warrant the hassle?

    Thanks.

    Here's the rejection letter I received (dated 7th August).
    Currys Account [...]
    Sale of Payment Protection Insurance (PPI) attached to your GE Money Card (subsequently Santander Cars UK Limited)
    Than you for the correspondence telling us of your concerns about the PPI policy taken out with GE Money. We're sorry that you have found it necessary to complain.
    Santander is responding to your complaint on hehalf of AXA France IARD and AXA France VIE, the insurers under your PPI policy (toghether the "Insurer"). The Insurer is not a Santander company, but we have assessed all aspects of your mis-selling complaint on behalf of the Insurer.

    Outcome of your complaint against the Insurer
    Our investigation is now complete. We're satisfied based on the information available that the sale of the PPI policy wasn't substantially flawed and that there are grounds to conclude that you would have bought the policy in any event.

    As a result we won't be upholding your complaint against the Insurer. [...] We've summarised the reasons for our decision below. This is the Insurer's final response.

    Details of the investigation
    The PPI policy was taken out in store on 23 June 1998
    According to our records the known PPI premiums charged to your account [...] amount to 30.55
    The PPI policy is no longer active. [...]

    Reasons for my decision
    [...]
    You took out the policy when you were between 18 and 65 years of age.

    Based on the information available to us, at the time the policy was sold you were in permanent paid employment [...] you would have been eligible to make a claim [...]

    This was a non-advised sale and as such we would not have sought information about any alternative cover that you may have had at the point of sale.

    Using the details available to us, we're unable to conclude that the policy would have been inappropriate in this respect, as any insurance claim would have paid out in addition to any alternative means.

    As part of our investigation, we've also assessed whether the policy was portrayed to you as optional. We can confirm that it has never been a requirement to take out a PPI policy for an account application to be accepted. We have on file a copy of a Storecard Agreement that you were asked to sign when opening the account. Upon completing your Agreement, you were offered PPI by the store assistant. As you requested to take out the policy, the relevant box was marked. When the application was printed off after completing your personal details, you then signed the Agreement to confirm that you wished to be bound by its terms and conditions and had opted to take out the additional cover.

    In light of the above, we feel that the policy was provided to you as an optional product.

    Sufficient information was provided at the point of sale to allow you to make an informed decision whether or not to add PPI to your account. Documentation confirming the sale of a PPI policy would have been sent [...] and this provided full details of the insurance, including eligibility, exclusions and limitations, and levels of cover.

    In relation to the costs and benefits of the policy, we've considered that you would have been made aware of the policy costs and that it would have provided a useful benefit to you if you needed to make a claim. Information available at the time of sale, and that received afterwards included details of the policy costs. PPI premiums have always been collected separately and appeared as separate charges on any statements issued to you.

    We're satisfied based on the information available that the sale of the PPI policy wasn't substantially flawed and that there are grounds to conclude that you would have bought the policy in any event. Therefore we won't be upholding your complaint against the Insurer.
Page 1
    • Moneyineptitude
    • By Moneyineptitude 13th Aug 19, 11:13 AM
    • 24,339 Posts
    • 13,844 Thanks
    Moneyineptitude
    • #2
    • 13th Aug 19, 11:13 AM
    • #2
    • 13th Aug 19, 11:13 AM
    The amount is 30.55. This doesn't seem like much but presumably compound interest applies since 1998.
    Originally posted by Fridlum
    PPI redress interest is 8% simple, not compound.

    Do you actually have access to the Ombudsman?
    (This is seven years prior to regulation in January 2005).

    Regardless, the complaint was weak and seems to have been fairly addressed I'm afraid.
    • SonOf
    • By SonOf 13th Aug 19, 12:14 PM
    • 700 Posts
    • 847 Thanks
    SonOf
    • #3
    • 13th Aug 19, 12:14 PM
    • #3
    • 13th Aug 19, 12:14 PM
    and I absolutely would not have bought the policy if I had been aware of it.
    Not a strong complaint reason as you could be telling lies. Not saying you are but that you could be. Credibility is an issue here. If you pay for something you didnt agree to then people normally raise that within a short period. The longer you leave it to complain, the less credibility that argument has. 20 years in your case.

    To be honest, I am surprised they did not auto-payout in this case as the amount is so small.

    In the rejection, does it state whether they are granting access to the FOS or not?
    • Moneyineptitude
    • By Moneyineptitude 13th Aug 19, 11:59 PM
    • 24,339 Posts
    • 13,844 Thanks
    Moneyineptitude
    • #4
    • 13th Aug 19, 11:59 PM
    • #4
    • 13th Aug 19, 11:59 PM
    I am surprised they did not auto-payout in this case as the amount is so small.
    Originally posted by SonOf
    Agreed, but they are probably not granting FOS access as pre-regulation
    • Fridlum
    • By Fridlum 15th Aug 19, 4:40 PM
    • 6 Posts
    • 0 Thanks
    Fridlum
    • #5
    • 15th Aug 19, 4:40 PM
    • #5
    • 15th Aug 19, 4:40 PM
    They say in their letter that "You have the right to refer your complaint against the Insurer to the Financial Ombudsman Service free of charge"
    • Moneyineptitude
    • By Moneyineptitude 15th Aug 19, 5:08 PM
    • 24,339 Posts
    • 13,844 Thanks
    Moneyineptitude
    • #6
    • 15th Aug 19, 5:08 PM
    • #6
    • 15th Aug 19, 5:08 PM
    They say in their letter that "You have the right to refer your complaint against the Insurer to the Financial Ombudsman Service free of charge"
    Originally posted by Fridlum
    Your choice what to do then.

    Just don't expect to receive thousands of pounds in interest, however, even if your complaint is eventually upheld. Compound interest is not paid.

    As D says above, it's surprising that the bank didn't simply uphold this to avoid the likely FOS fee.
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