Egg - did not pay out on PPI claim

[Subliminal Sam]

I'm still going through Mrs Sam's bank accounts and credit card accounts looking for mis-sold PPI.

 

I have sent a SAR to Egg and they have finally complied with over 400 pages of information!

 

Mrs Sam took out an Egg credit card back in 2002 which ran until 2008.

 

During that time she paid an average of £30.00 per month PPI.

 

I'm ploughing through the paperwork to see her signed agreement for PPI but I haven't found it yet

- there appears to be everything else though.

 

Mrs Sam cannot remember how it was sold to her back in 2002.

 

Mrs Sam became ill in 2008.

 

At this time she had her own business.

 

Her illness has sadly resulted in her being unable to work.

 

She has been on incapacity benefit since February 2008.

 

She had to wind her business up at that time.

 

She wrote to Egg on 22 November 2008 to see if she could use her PPI but did not receive a response.

 

That letter contained a letter from her GP and her incapacity benefit letter.

 

Due to her illness she did not pursue the issue until March 2010 when she wrote to Egg again.

 

They did not reply to this letter either.

 

She chased them in April 2010 and she finally received a response at the end of April 2010.

 

Their response was that the insurance does not lie with Egg and she should have taken it up with the insurer.

I do not understand why they did not reply to her letter in 2008 with that information.

They said that this information was detailed in the document that she had read and agreed to in 2002(!)

They also said that the PPI on the card was cancelled on 6 November 2008 as the premiums had lapsed due to her not making payments to the account.

 

She was unable to make the payments due to her incapacity!

They subsequently put the Egg account in the hands of their Collections Department and then to ARC.

 

Neither of them were able to get any money from her (as she wasn't earning any!) and now the debt is back with Egg.

They don't appear to be chasing her for it any more.

 

So where do I go from here?

 

I want to claim back the PPI payments which must amount to somewhere in the region of £2,800 before interest.

 

What are the issues concerning her unsuccessful request for a payout on the insurance earlier?

 

All advice gratefully received!

[ims21]

Hi Sam

 

Was Mrs Sam self employed when she took out the account and insurance?

 

Also Egg had a policy of pre-ticked boxes for on-line applications for which I believe they have been sanctioned.

[Subliminal Sam]

Hi ims21.

She wasn't self-employed when she took out the policy. She was working for a company at that time. I've looked through the paperwork again and I can't see see the PPI agreement anywhere. There is a copy of her signature on the Credit Agreement for the Egg card in 2002 but it does not mention PPI at all.

[dx100uk]

then use the company sick scheme reason

 

she was already covered 6mts full 6mts 12 pay.

 

to 'assume' egg sold the policy correctly

 

is a bit crass for the person to write back to her to fob her off.

 

in 2002 its possible the application was not made online?

 

the sar should tell you how she applied

 

dx

 

dx

[ims21]

Ah - ha

 

So you have the signed agreement and no mention of PPI.

 

Sounds like that's the clincher because if she didn't agree to it or apply for it then it would appear that they have slapped it on the account Willy Nilly. That is a No No.

 

That would then mean that your concerns about unanswered correspondence is academic and as I see it you have a valid claim for mis-selling.

 

Grab a copy of the fos consumer questionnaire from here and complete it

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi.html

 

Also, if you have all of the statements, have a go at completing this spreadsheet...follow the instructions in the "Notes" tab

 

FosRunningPPI v102.xls

 

Send the completed questionnaire and a print of the spreadsheet to the lender together with a brief letter requiring refund.

 

They may well come back and say that Mrs Sam agreed to it on the phone (We've seen that one before) in which case they will need to provide evidence/transcript of that call. Of course they won't be able to though.

 

They will have 8 weeks from receipt of the claim to give you a final decision.

 

Shout here if you need help.

[Subliminal Sam]

That's great! Many thanks ims21.

[Subliminal Sam]

Just one more question (I hope!)

 

If they agree to refund the PPI will they pay it back to her or deduct it from the outstanding credit card debt?

 

Thanks.

[ims21]

They can use their right of set off to put the refund against the account. Any excess would be paid back to Mrs Sam.

 

If the account has been sold to a third party then there is no right of set off.