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    • money-reform-now
    • By money-reform-now 14th Mar 18, 12:40 AM
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    money-reform-now
    Bit of a long shot!! PPI enquiry??
    • #1
    • 14th Mar 18, 12:40 AM
    Bit of a long shot!! PPI enquiry?? 14th Mar 18 at 12:40 AM
    So...... I am just wondering if anyone has any thoughts on this, a pretty long winded, almost certainly not very valuable PPI claim Query.

    So I recall being told by a financial advisor that I needed to apply for a credit card, use it, and make sure I paid it off in full every month. This was because I had previously no real credit history and my rating was low. This I did, and took a card by MBNA, and being unsure about credit cards when for about PPI took it. I started using it as instructed and all was well. A couple of years later, I took advantage of an interest free money transfer. After several months I noticed that the PPI was related to the balance and although I was paying no interest, I WAS paying a percentage as PPI cover. I seem to remember the figure was around £30 per month. I dug out the policy details and it wasn't long before I was out the opinion, that in order to benefit from the cover, I would have to suffer some sort of horrific and unlikely catastrophe. Looking to reduce my payments (or actually have the£30 each month reduce the balance) I phoned MBNA and requested the PPI to be cancelled. I recall this conversation got quite some resistance, but I insisted the policy was of no use and insisted it be cancelled. The next month, my statement did indeed indicate the policy was cancelled, and I was no longer being charged for it. HOWEVER, my interest free offerr had been removed, and now the bloody interest was almost twice what I was being charged for the PPI. I resolved to increase the payments, get rid of the debt, and consign MBNA to the "Dead, to me"list of companies (which is now, quite a little tome) I still to this day have a bad taste in my mouth whenever I see their logo. So....... Cut to today, nothing would give me greater pleasure than clawing back something from those flip flops. However, I have no records of the card number, no statements, from what I can see almost nothing but the knowledge that this happened. This whole event with MBNA happened from approx 1998-2005. I have skirted the issue of reclaiming several times since the mis-selling fiasco, but have always been too daunted. Knowing that the end is approaching, I thought I would try my luck with the forum to see what the experts thought. Every article I have read never seems to give examples of situations that seem anywhere near similar to mine. If you have any knowledge of thoughts, I would be grateful to hear them, even if it's " fella, you're deluded, get over it and move on" Thanks for taking the time to read this.:
    Last edited by money-reform-now; 14-03-2018 at 12:46 AM. Reason: Grammer
Page 1
    • Moneyineptitude
    • By Moneyineptitude 14th Mar 18, 12:55 AM
    • 20,404 Posts
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    Moneyineptitude
    • #2
    • 14th Mar 18, 12:55 AM
    • #2
    • 14th Mar 18, 12:55 AM
    I needed to apply for a credit card, use it, and make sure I paid it off in full every month. This was because I had previously no real credit history and my rating was low. This I did. After several months I noticed that the PPI was related to the balance and although I was paying no interest, I WAS paying a percentage as PPI cover. I seem to remember the figure was around £30 per month. I have no records of the card number, no statements, from what I can see almost nothing but the knowledge that this happened. This whole event with MBNA happened from approx 1998-2005.
    Originally posted by money-reform-now

    When you later had a balance but took advantage of an interest free period, I'm assuming that was a new account entirely. You say cancelling the PPI caused you to also lose your interest free period, but could this have been because in order to qualify for the interest offer you also had to have PPI? Such cross subsidy deals are allowed and are not a valid mis-selling reason.

    Nevertheless, with no records of this account and it being a long closed as well as originating from twenty years ago, your chances of advancing any complaint are very slim indeed.
    • dunstonh
    • By dunstonh 14th Mar 18, 10:58 AM
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    dunstonh
    • #3
    • 14th Mar 18, 10:58 AM
    • #3
    • 14th Mar 18, 10:58 AM
    HOWEVER, my interest free offerr had been removed, and now the bloody interest was almost twice what I was being charged for the PPI.
    Maybe the interest-free period ended that month? These things are time limited. Typically somewhere between 3-12 months.

    Cancelling the PPI probably didnt trigger it. However, in some cases, insurance was used as a cross subsidy deal

    Every article I have read never seems to give examples of situations that seem anywhere near similar to mine.
    You put in your complaint giving your reasons for complaint. As you self bought it, your not in a strong position. You cannot accuse a member of staff of misselling you as you chose to have it. Most complaints focus on what the staff member did wrong. You dont have that. So, you are more reliant on there being an eligbility issue or a clerical issue. Odds low but that is what it is.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • money-reform-now
    • By money-reform-now 14th Mar 18, 12:36 PM
    • 4 Posts
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    money-reform-now
    • #4
    • 14th Mar 18, 12:36 PM
    • #4
    • 14th Mar 18, 12:36 PM
    Hi thanks for your thoughts. I tend to agree chances being slim indeed. I cannot recall if the PPI was a condition of the 0% offer. All I can say is the offers of 0% kept coming in way after I had cancelled the PPI. I would argue that just because I cancelled a pretty unusable product, which would facilitate me to reduce costs, this should have no effect on their risk exposure. It was as if the resistance I was met with to keep the product was actively transferred to representing me as somehow being in default. This may well have been the case if one studied any written conditions. But I would argue that this is unfair and mirrors quite closely the morally repugnant terms and conditions that are now widely accepted with regard to the whole ppi debacle.

    However as I stated at the beginning, I tend to agree this issue is an unrealistic " punt". One which I can now put to bed.

    Cheers
    • money-reform-now
    • By money-reform-now 14th Mar 18, 12:48 PM
    • 4 Posts
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    money-reform-now
    • #5
    • 14th Mar 18, 12:48 PM
    • #5
    • 14th Mar 18, 12:48 PM
    Thanks for your comments. The interest free deal was 3 or 4 months into an 18 month period. I have never made a complaint. It feels like I was treated as being in default, similar to if you miss a payment. I may well of been in default. But the ridiculous terms found in ppi policies have clearly been denounced. So upon studying the policy, deciding such a ridiculous policy was of no use to literally anyone, certainly not me, I decide I no longer wish to pay for it. To be penalised for not playing the game, so we will remove your interest free privilege, seems devious and harsh. Either way I'm not going to sweat it. I was just exploring the possibilities of making a claim.

    Cheers.
    • dunstonh
    • By dunstonh 14th Mar 18, 12:54 PM
    • 92,976 Posts
    • 60,354 Thanks
    dunstonh
    • #6
    • 14th Mar 18, 12:54 PM
    • #6
    • 14th Mar 18, 12:54 PM
    All I can say is the offers of 0% kept coming in way after I had cancelled the PPI.
    During the credit crunch that was normal. It led to people switching cards left right and centre.

    I would argue that just because I cancelled a pretty unusable product, which would facilitate me to reduce costs, this should have no effect on their risk exposure.
    Its not an argument that matters though. If it wasnt a cross subsidy deal and the interest rate expired naturally then it matters not. If it was a cross subsidy deal then its not about risk. Its about profit. A loss leader in one area to gain in another. A model that is common place in retail and allowed in financial services as long as the products are suitable.

    And what makes you think the PPI was unusable? Plenty of people claimed on PPI. You can still buy types of PPI today. The issue with PPI is how it was sold to you. Not the product itself (although some product types were bad)

    It was as if the resistance I was met with to keep the product was actively transferred to representing me as somehow being in default. This may well have been the case if one studied any written conditions.
    That was a post sale event and despite the sales pressure (which is allowed as long as it is reasonable), you still cancelled it. So, it is non-issue. It doesnt change anything. If you didnt like their service, you had three years to complain about it. Its not an event that cost you anything. So, nothing to gain.

    But I would argue that this is unfair and mirrors quite closely the morally repugnant terms and conditions that are now widely accepted with regard to the whole ppi debacle.
    I think you misunderstand what the PPI issue is. Its not the product, as I mentioned. You can still buy PPI today and if it was product related, then all PPI complaints would be upheld.

    The PPI issue is about the sales process. Was it sold to you correctly? Did the person carry out all the right disclosures and checks? If an advised process rather than a sales process, did the additional advice related checks get carried out? Product failure is a minority success reason with complaints.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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