MBNA & PPI - What's the angle?

Discussion in 'Finance, Property, Law' started by Vladimir_Ilyich_Crab, Jun 17, 2013.

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  1. MBNA have just written to me telling me I was in a group of those who had PPI and that it may have been mis-sold - winner. I have never deliberately gone for PPI so must have been. But, this has raised some questions:

    1. I had been a lazy arrse and not tried to claim (not being aware) - so if they had not told me I would never have known. So what is the benefit of responding to their questionnaire?

    The only thing that occurs to me is that they are hoping to pre-empt people going through claims companies or even printing off 'Martin's Money' forms and claiming themselves - ie if I take the convenient route and respond, I take their poxy settlement as I would potentially get more myself or through a company, thus saving them some cash.

    Should I now go for my own claim or a claims company and ignore their correspondence? Has this happened to any other arrsers?

    2. Is it true that PPI should never have been sold to serving personnel?

    Sensible answers appreciated.
  2. The_Duke

    The_Duke LE Moderator

    1. For financial institutions, certainty has its own value. As long as they knew that there was potential mis-selling, then they would have to hold an amount in reserve to pay for that. Also, if they knew or had a strong suspicion that you had been mis-sold, then it wouldn't take too much for a lawyer or Ombudsman type figure to start claiming that they owed you even more money because they should have paid you earlier. Given those conditions, it makes a lot of sense to "take the pain" rather than drag it out even longer. It would be cheaper in the long run. You don't get more through a claims company, you get less, much less, once they have taken their fees from the award.

    2. Never sold to serving personnel? I wouldn't say it is as clear cut as that once you consider joint debts, the employment status of partners etc. However, it is certainly one of the employment groups who would have benefitted less from PPI. Remember, mis-selling is about not being told the facts, not being given a choice, or being over-sold in terms of how much you needed it.
  3. FrosteeMARIA

    FrosteeMARIA LE Gallery Guru

    I helped someone claim back a substantial refund for mis-sold ppi,(lloyds) and there was also a compensation figure added to the total premiums paid. Easy peasy, fill in their claim forms, job done. As there were multiple accounts involved, it took them a few weeks longer than anticipated, so another penalty amount was added to that too! No need at all to go through a claims company, they'll only take a wedge for doing exactly what you can do yourself, i.e., filling in a form.
  4. BiscuitsAB

    BiscuitsAB LE Moderator

    Amongst other things I run a claims company. PPI is something we don't do, its so easy for the consumer we just tell them how to and let them do it for themselves. my last client just got £11,000 back. Our standard fee is 20% so she would have ended up giving us £2,000 for writing three measly letters.

    It really is dead simple. Respond back to them and say how much are you going to pay me and wait for the money. If you can't do that because you can't be arsed then fine I'll do if for you for 20%!
  5. I can't comment on the rights and wrongs of selling it to serving personnel, but I can confirm that I have just received a substantial PPI refund from my bank. In my case it was only for a matter of months (account with PPI was set up, I was deployed, came back to a pile of post showing PPI added!)

    The Financial Ombudsman found that my employment (which the bank were aware of) was a significant factor in the mis-selling and found in my favour.

    My advice is for anyone in the Armed Forces who has found out they have PPI is to have a stab at reclaiming, for the cost of a stamp you have very little to lose and all the free template letters, etc knocking around on the web are very useful indeed.

    Nowt to lose!
  6. The reason they have written to you is not because they want to save money etc. It's because the FSA (the financial services regulator) require all firms that mis-sold PPI to conduct what is called "root-cause" analysis. The point is if they mis-sold PPI they should track down all customers that may have been mis-sold PPI and encourage them to complain. This is what the banks went to court about (and lost), they argued against doing this "root cause analysis". The banks are only now actual starting to approach people.

    They basically have to do this or face more massive fines from the FSA. Fill it in and send it back ASAP. You won't get anymore by doing it yourself or by sending it to CMC. You can still reject their offer if you don't agree (that's assuming you get one)