MBNA Europe Bank Penalty Charges & the Financial Ombudsm

[BankFodder]

Yes but you haven't said what your problem is with the MBNA

[angry cat]

Hi,

Sorry it has taken me so long to get back to you, but I have been going through all my paperwork - again!

 

Basically my main problem with the MBNA is about Payment Protection Insurance, but also includes Late Penalty Charges. I have tried to work things out with MBNA, but of course they would not answer all my concerns. Therefore I took the complaint to the FOS

 

I became unwell in 2002 and had to claim on the MBNA PPI which was supposed to give me peace of mind and pay my credit card monthly payments. MBNA's chosen insurer was London & Edinburgh, but there was no continuity between the bank & Insurer and I was constanlty being fined with Late & over limit fines, due to the insurer nearly always being late paying the funds into my account. I have been fined 24 times over a period of 52 months, that is an average of 2.666 times per month at a cost of £528 I complained to both to both the bank and the FOS and I did receive some credits, but never the associated interest. Last summer I received a communication from the insurer stating that my insurance had come to an end, they said it was because they had paid an amount which was equal to my outstanding balance at the time when I first became unwell. I queried this and checked my policy which was very cleverly worded and of course limited by exclusion clauses. All through my insurance claim I continued to pay the monthly insurance premiums and have been charged interest on the transactions - even though it stated on my statements - no transactions allowed

Unfortunately my illness has poved to be long term.

I complained to the bankl & FOS that I considered that the PPI had been missold, that the Terms & conditions were Unfair because of the Limitation & Exclusion clauses i.e. I cannot claim because I am unwell and would be considered to have a pre-existing condition and one cannot claim until you have returned to work for 6 months

When I complained to the bank, they sent me a copy of the insurance terms & conditions, but the insurer had been changed, as well as some of the wording on the policy. I was of the understanding that MBNA could not change the insurer without telling me and we will not change the terms & conditions of this insurance without telling you.

I am left with a debt made up of useless PPI premiums and their associated interest, which I had paid for almost 3 years after making my original claim

The FOS simply just quote Terms & Conditions and have stated that they cannot see my view.

As to the 24 penalty fines, which I have received credits amounting to £485. However the FOS are saying that £45 were goodwill payments from MBNA, which of course they are not! If that is the case then the money that has been credited to me in respect of penlties, should be £440, meaning that they still owe me £88

I have made a list of the MBNA Penalties and MBNA Credits and am in the process of wiriting again to the FOS. Should I enclose that list or ask for all information relating to my complaint (FoI Act) before disclosing my facts?

Sadely I do not think that the FOS will assist me, all they seem to want is for me to sign a settlement form for £50 compenstion, but MBNA have just fined me £25 again

Sorry if my message is a little rambling

angry cat

[angry cat]

Hi,

Sorry it has taken me so long to get back to you, but I have been going through all my paperwork - again!

 

Basically my main problem with the MBNA is about Payment Protection Insurance, but also includes Late Penalty Charges. I have tried to work things out with MBNA, but of course they would not answer all my concerns. Therefore I took the complaint to the FOS

 

I became unwell in 2002 and had to claim on the MBNA PPI which was supposed to give me peace of mind and pay my credit card monthly payments. MBNA's chosen insurer was London & Edinburgh, but there was no continuity between the bank & Insurer and I was constanlty being fined with Late & over limit fines, due to the insurer nearly always being late paying the funds into my account. I have been fined 24 times over a period of 52 months, that is an average of 2.666 times per month at a cost of £528 I complained to both to both the bank and the FOS and I did receive some credits, but never the associated interest. Last summer I received a communication from the insurer stating that my insurance had come to an end, they said it was because they had paid an amount which was equal to my outstanding balance at the time when I first became unwell. I queried this and checked my policy which was very cleverly worded and of course limited by exclusion clauses. All through my insurance claim I continued to pay the monthly insurance premiums and have been charged interest on the transactions - even though it stated on my statements - no transactions allowed

Unfortunately my illness has poved to be long term.

I complained to the bankl & FOS that I considered that the PPI had been missold, that the Terms & conditions were Unfair because of the Limitation & Exclusion clauses i.e. I cannot claim because I am unwell and would be considered to have a pre-existing condition and one cannot claim until you have returned to work for 6 months

When I complained to the bank, they sent me a copy of the insurance terms & conditions, but the insurer had been changed, as well as some of the wording on the policy. I was of the understanding that MBNA could not change the insurer without telling me and we will not change the terms & conditions of this insurance without telling you.

I am left with a debt made up of useless PPI premiums and their associated interest, which I had paid for almost 3 years after making my original claim

The FOS simply just quote Terms & Conditions and have stated that they cannot see my view.

As to the 24 penalty fines, which I have received credits amounting to £485. However the FOS are saying that £45 were goodwill payments from MBNA, which of course they are not! If that is the case then the money that has been credited to me in respect of penlties, should be £440, meaning that they still owe me £88

I have made a list of the MBNA Penalties and MBNA Credits and am in the process of wiriting again to the FOS. Should I enclose that list or ask for all information relating to my complaint (FoI Act) before disclosing my facts?

Sadely I do not think that the FOS will assist me, all they seem to want is for me to sign a settlement form for £50 compenstion, but MBNA have just fined me £25 again

Sorry if my message is a little rambling

angry cat

[BankFodder]

Sorry I missed your post.

 

I'm afraid that it is a little rambling and I have difficulty getting an overview of your problem.

 

Would you like to try and reduce it to the basics for me.

 

You made another point about the FSA not being subject to FSA discloure because they were not government. I am surprised as I expect that the FSA has been set upt as a result of some Act of Parliament and was a public body.

Where have you seen that they are excluded?

[BankFodder]

Sorry I missed your post.

 

I'm afraid that it is a little rambling and I have difficulty getting an overview of your problem.

 

Would you like to try and reduce it to the basics for me.

 

You made another point about the FSA not being subject to FSA discloure because they were not government. I am surprised as I expect that the FSA has been set upt as a result of some Act of Parliament and was a public body.

Where have you seen that they are excluded?

[angry cat]

Okay-

I will try to break down my problem and get back to you with bullet points

 

Re: requesting a disclosure under the Freedom of Information Act 2000 from the Financial Ombudsman Service-

It would appear that The Financial Ombudsman is not classified as a Public Authority! The FSA however is classed a a Public Authority!

 

I believe, but if I am wrong please correct me, that you cannot request a disclosure under the FoI Act unless the party is a Public Body or Public Authority. Therefore, I cannot ask the Financial Ombudsman to disclose all the information that he has about my complaint with MBNA

 

Not Fair is it?

 

angry cat

[BankFodder]

I'm surprised that he is not a public authority. Where do you fnd this?

[angry cat]

The following link will tell all-

 

http://www.financialombudsman.org.uk/faq/research.htm

 

How does the Ombudsman comply with Freedom of Information

how does the ombudsman comply with freedom of information

go to frequently asked questions

Freedom of Information

 

I think this is quite shocking, because the FOS was appointed by the Financial Services Authority (FSA) who are a Public Authority and are subject to FoI.

 

Once the FOS comes to its Final Decision, there is No Appeal

 

I welcome your comments

 

angry cat

[BankFodder]

Well, I'll go to the foot of our stairs ...!! :o

[angry cat]

I know !!!

 

It is a disgrace, immoral & a Scandal...

because consumers go to this appointed body for 'what they think is assistance' but...

Factually the FOS is just a Public Relations dept., for the industry-

it has taken me a while to fin this out and...

it cannot be right?

Not just in my case but it must go against Human Rights!?

However, because the FOS are not a Public Body or Public Authority-

Human Rights do not apply.

 

Sorry to take up your time and thanks for your time.

angry cat

[angry cat]

Hi Guys!

I require some specialist advice re my ongoing complaint against MBNA. My complaint has been lodged with the Financial Ombudsman. The complaint basically revolved around a Payment Protection Insurance issue, but it also involved many Unlawful Penalties/Charges. The FOS have been investigating my concerns for some time but the matter is going nowhere!

I wrote to the FOS requesting a "Freedom of Information" Disclosure from the FOS as to ALL the material which they have used as part of their investigations, replies from any party requested and their notes in arriving at their decision. I susequently received a reply from the FOS "In response I advise that the Financial Ombudsman Service is not subject to the Freedom of Information Act as it is not a Public Authority as defined in the legislation. Although public authority included a government department, we are a statutory dispute resolution scheme set up under the Financial Services and Markets Act and not a government department or agency. Consequently, as the Financial Ombudsman Service is not subject to the Freedom of Information Act, we are unable to deal with any request for information under that Act"

"However, in the circumstances your letter may constitute a request for personal data under the provisions of the Data Protection Act 1998. However, I should explain the potential limits of such a request. It might be helpful if I explain at the outset that the purpose of the subject information provisions under section 7 of the Data Protection Act is to enable an individual to obtain from a data controller's filing system, whether computerised or maual, his or her personal data. Personal data is information about that individual. It is not an entitlement to be provided with original or copy documents as such, but to be provided with information constituting personal data in intelligable form. Generally speaking, only information that directly names or directly refers to an individual qualifies as personal data, for example, national insurance numbers, medical records. credit records etc. The mere mention of an individual in a document in a document does not necessarily amount to personal data so as to entitle that individual to receive a copy of it. In the circumstances, the information which you seek arising out of your compalint against MBNA Europe Bank Ltd is not personal data within the meaning of the Data Protection Act. However, the Financial Ombudsman Service would be willing to process a subject access request on your behalf in accordance with provisions of Section 7 of the Data Portection Act, but it is important to let you know in advance that you will not receive copies of the documents or information that you refer to, as this is outside the remit of the Act"

"If having read the above you still wish to proceed with an application under Section 7 of the Act, the Financial Ombudsman Service is entitled to charge a fee of £10. Processing your reauest will begin once your chaequ has cleared"

Legal Advisor.

 

Okay ! so obviously I cannot obtain a Freedom of information Act Disclosure from the FOS about my complaint with MBNA. Ther above appears to suggest that I can request a DPA Disclosure, but that it is not going to tell me much or anything regarding my complaint and how the FOS has handled it? and that I will not be entitled to copies!???

Now you can understand, why I need advice?

I have read the above but it reads like jargon, maybe it's me.....

 

Please help me out here, should I send the £10, would it be a waste of time... any advice please

 

Thanks

angry cat

[Seminole]

I think that explanation of the FOS' status is disingenuous. The FOI can be applied more widely than govt departments or agencies. For example, I believe that it can be applied to housing associations. I am not sure where the boundaries lie but you could ask the Information Commissioner for his view (I would ring or write rather than submit it as a complaint at this stage).

[angry cat]

Hi Seminole !

 

I agree, that the fos's response regarding the F'O'Information & DPA is disingenuous. Therefore I phoned The Information Commissioner in Wilmslow for their view-

After I explained the situation he confirmed that because the Financial Ombudsman Service is neither a Public Body nor a Public Authority they do not have to give the required dsiclosure under The Freedom of Information Act. However, The Information Commissioner Office did state - that the FOS had not been very clear to me about the issue ! and continued to advise that I could apply for a DPA Subject Access but was doubtful as to what this would reveal-

 

I think that I will request the DPA Disclosure from the FOS-

under section 7 - 8 & 9.

 

Most likely I will be throwing my £10 away, but any informatoin that I can glean, must be better than none !

 

If you have any brilliant ideas....

I will be most grateful to hear them

 

ps something that is niggling my mind is...

because the Financial Ombudsman Service was set up by the Financial Services Authority (who are a Public Body / Gov. department) could I appeal to them FSA as the regulator to get the FOS to release the info that I require under The Freedom of Information Act??

What do you think..

Thanks

angry cat

[Seminole]

Don't know I'm afraid. I've just had a look at the complaints section on their website and that points you in a completely different direction to the one you suggest. I would be surprised if thr FSA would involve itself in the sort of complaint that you are talking about. Given that FOS is intended to help and protect the public, there is a stunning lack of public accountability.

[angry cat]

Hi Seminole and thanks for your prompt response...

 

When I first approached the FOS about my complaint with MBNA, I was of the same view that you appear to write-

"Given that FOS is intended to help and protect the public" (Consumer)

 

I had a telephone conversation recently with a FOS Adjudicator and I said to him in a reply to one of his premeditated recorded questions "But I thought that the FOS were there to help the consumer"....his reply was "No, we are not here to help the consumer, our job is look at complaints impartially" Of course, I was shocked at the time and I will now request a full disclosure of the obviously recorded telephone conversation with this FOS Adjudicator, when I submit my DPA disclosure request to the FInancial Ombudsman Service

 

I fully agree with you, that there is a stunning (astonishing) lack of public accountantability and an emphasis must be placed upon the fact, that once the Ombudsman gives his 'Final Decision' there is NO APPEAL !!!

 

Without prejudice

 

However, it appears lucidly clear to me that the FOS is simply a Public Relations Department for financial institutions and these corporations use it to their full advantage. I have wasted so much time and effort mapping out my concerns against MBNA to the FOS and I have discovered that many of my issues, such as contract law, do not even come under the FOS's jurisdiction, but of course even to date the FOS have not informed me that contract law is not within their remit/jurisdiction! shame on them

They are still looking at my complaint-

which factuallly does include Late Payment charges ( Unlawful Penalties)

 

 

I will send of the request for the DPA disclosure to the Financial Ombudsman, just to satisfy myself that I have covered all angles - I know it will be a whitewash..plus a waste of my money and time

 

Lastly, I believe that the regulator would be the OFT as opposed to FSA, as my problem relates to a MBNA credit card/payment protection insurance and the OFT regulates consumer credit. Perhaps, I could appeal to the OFT for my F'o'Information from the FOS - well its worth a try and my only other option now appears to be going to court. I will log the issue with Trading Standards

 

Thanks for listening to a very....

angry cat

[angry cat]

Hi Guys,

I have an ongoing problem with MBNA about Payment Protection Insurance mis-selling and Penalty Fines that were levied on my account, even when my PPI insurance claim was in place

 

As already mentioned, I foolishly took my complaint to the Financial Ombudsman and because I found it difficult to comprehend, what the FOS were doing to assist? I Requested a Freedom of Information Disclosure from the FOS, because I am unhappy at their conclusions and I wanted to find out "just what & how the FOS were investigating my complaint against MBNA. I have been informed that one cannot obtain a Freedom of Information Disclosrure from the FOS because they are neither a Public Body, nor a Public Authority. However, I have today sent a request to them (FOS) requesting a DPA "Subject Access Request" which I hope once processed, will throw some light on how my complaint has been looked into by this supposedly independant body. Howver, they were set up by the Financial Services Authority (A Government body / Regulator)

 

Re: The Unlawful Penalty fines/charges that MBNA levied on my MBNA credit card account and there were 25 Fines ranging from £18 - £25 a time over a 52 month period. I have managed to get 22 of the fines credited back to my account, just by writing letters of complaint, but the remaining 3 which amount to £68 still remain to be credited plus interest.

I have today sent the [Library] preliminary letter to Mr Michael Rhoded ceo at MBNA ....requesting the refund of the £68 remaining plus a request...

"Please do not levy another Lawful Penalty Fine on my account on the 9 April 2006" (which is my next statement date)

I would emphasise at this point, that the only reason that I am in this predicament is that I was unfortunate enough to fall victim of a long term illness and that is why I have mistakenly been reliant on the Financial Ombudsman Service, who I had hoped would assist me:(

If and when I receive a reply to my [Library] preliminary letter, I will of course advise the BankActionGroup

angry cat

[angry cat]

Hi Guys-

 

As already stated I sent the Library preliminary letter on 31/03/2006 to Mr. Michael Rhodes (ceo) MBNA and today 13/03/2006 I received a reply to my letter from RICHARD HONEY "Director of Customer Satisfaction" - MBNA PO Box 1004 Chester CH4 9WW

The letter is dated April 7 2006

 

"Thank you for contacting us.

 

It is my utmost intention to resolve this matter to your satisfaction and I would appreciate if you could telephone the Customer Advocate Office on 01244 672628 between 9am and 5pm, Monday to Friday.

 

We will ensure that you receive a full response by April 30th 2006. I have enclosed a copy of our internal complaint procedure leaflet for your information.

 

Yours sincerely

 

Richard Honey

Director of Customer Satisfaction"

 

Of course, I have no intention of telephoning the MBNA Customer Advocate Office!

 

This of course is just delaying tactics..

 

So, it looks like I will be going to the next stage and after the Easter weekend, on Tuesday I will be snding the before action letter by Recorded Delivery.

 

My situation is quite unique because I am still awaiting a decision by the Financial Ombudsman, but MBNA are suggesting that if they are unable to resolve my complaint after 8 weeks (from 31/03/2006) that I can take my complaint to the Financial Ombudsman!?

 

Any thoughts or comments gratefully received

 

MODERATED post moved ... can you please keep to your original thread this is for your benefit and the benefit of people following your case.

[surreyscouse]

don't worry about the ombudsman.

 

A. You can ask them to stop investigating at any point without giving a reason.

 

B. As far as I am aware, the ombudsman acts as a sort of mediator between both parties to see if an agreement can be met over the dispute. They have no power in law to make any type of ruling.

 

Personally, I would kick the ombudsman into touch and just sue MBNA.

 

If you want that guys email address try richard.honey@mbna.com or the direct number to the advocates office is 01244 672040 (out of hours this is Michael Rhodes voicemail)

 

Erm, did I tell you I hate MBNA with a passion !

[angry cat]

Hi Surreyscouse!

Thanks for your reply-

I know what you are saying about the Ombudsman, but as I have requested a DPA subject access request from the FOS, because I want to know what they have done with regards to my complaint about MBNA. In my opinion the FOS are incompetant and do very little for the consumer and it really vexes me, the way that banks use them to almost whitewash issues. MBNA have not joined the Financial Ombudsman scheme, but they stiil direct consumers towards them. However MBNA are actually members of the FLA !

 

I know that I will have to sue MBNA starting with the penalty fines-

 

They are horrible to deal with, they act like "toe rags" and I believe that they must be the least popular with consumers, both here in the UK and across the pond.

 

If there are any experts out there on contract law, could I PM you?

angry cat

[Nightmare4banks]

Hi all!

 

You are not the only ones that have had problems with MBNA.

 

I have previously posted about harassment calls etc and I have a similar problem regarding the PPI insurance with MBNA I have been overcharged going back since the end of the nineties 50p per £100 balance(My balance has reached over £10,000!) I found out about the tiers of cover last year when I decided to cancel the PPI but was offered a "downgraded version" which I never knew anything about - which was actually more suitable for my needs and circumstances.When I complained,they did not want know.Very evasive and choose to answer bits of the letters that you write and ignore the bits they desire not to reply.Also they have added no less than £400 in unlawful charges since last year.Actually,I could write a book about them!

 

angry cat,you mention that the FOS will not provide the info under Freedom of Info Act etc.How about getting a "Court Order" against the FOS to provide these details? I am not a lawyer but just a thought.

 

However,it could be that this information cannot be viewed or inspected by the public by virtue of its type of classification i.e. commercially sensitive possibly - I honestly do not know.

 

Out of curiosity,for those of you that have used the FOS when complaining about MBNA what was/were the final outcome(s)?

 

From my own personal experience with FOS,I feel that the FOS is more biased in favour of the financial institutions than the consumers.

 

Anyway,probably the best course of action is to contact the OFT initially.I was invited to do this earlier in the year following my harrassment ordeal which I discussed with the chap at the OFT but this got "sidekicked" due to personal reasons.

 

I will see to contact the OFT after the Easter break and update everyone. However,I will be writing the details of this experience in a seperate posting as that particular complaint to the FOS was not against MBNA.

 

Now we should all (personally,I am fuming with MBNA) get our thinking caps on to see how to proceed with MBNA in order to mutually benefit each other into getting positive redress.

[angry cat]

Hi Nightmare4banks-

 

Thanks for your message-

Re Harassment by MBNA, basically trying to prove harrassmant is so hard, impossible-

Yes, they phone you constantly, send coercive collections letters and basically drive you mad. You have two choices -

1. pay for the BT "choose to refuse" and then MBNA will not be able to get through to you, plus write a formal letter requesting that they contact you only by letter

 

2. or change your telephone number.

 

Re witing to MBNA complaining, I agree that they will not answer your concerns or if they do answer, it be an answer to just selected portions - they have stock phrases and reply paragraphs that are drawn from their IT system and anyway, MBNA will not incriminate themselves.

 

I have been battling with MBNA for months about the remaining debt left after a PPI claim. I became ill in 2002 and my claim was accepted by the insurer, who paid out 3% of the outstanding balance monthly. However all the time the claim went on (just over two years) they continued to charge monthly PPI premiums and charged interest. The PPI premiums were nearly always late and of course I was fined with Late & over limit fees - 52 fines in total - I have managed to get a lot of these back, by constantly disputing them and complaining to the FOS (Dont bother with the FOS because they do not help and are not consumer freindly In case they sue me, this is just my opinion / experience!)

My original debt in June 2002 was £10,000, it is now £4944.54 but this amount is just made up of monthly PPI premiums that continued to be charged after I had made my original PPI claim in 2002, plus interest charged on the PPI premiums and a small amount of £68 plus interest charged in penalty fines and they are still fining me.

 

I have disputed the debt outstanding, they have increased my interest rate (International Default I am now considered a bad risk) so that they can earn even more money out of me. I was precluded form making another claim (even though I had paid the premiums) because of MBNA's Limitation & Exclusion clauses - pre existing condition and One cannot make another ckaim until one has returned to work for six months??!! Also MBNA changed my insurer without telling me, which changed the T&C's of the Insurance, which I thought meant that MBNA had broken the terms and condition, but the FOS does not agree?!

 

I complained to both MBNA & the FOS, to no avail - The Financial Ombudsman have turned down my complaint and MBNA are turning 'up the heat' and hunting me for the money that they say - I owe.

 

To show 'Good Faith' to MBNA, I maintained my monthly minimum payments. whilst the FOS were looking into my complaint. However, I always marked the payments "Without Prejudice"

 

So this is my lovely MBNA Story-

I complained about their unfair PPI - they would not listen

I took my complaint to the FOS - surprise, surprise my complaint was turned down.

 

I have been ill since 2002 with a long term illness and after purchasing PPI I am left with an MBNA debt of almost £5,000 made up of unuseable PPI premiums and the accrued interest on that unuseable insurance

 

I will start a new thread-

as I have sent off the Library preliminary letter

 

Thanks angry cat

[surreyscouse]

Angry Cat - Love the name by the way

 

I fully agree with what you have said about the FOS. You can read about my complaint in my "This Is War !!!" post.

 

The final letter from the FOS did not really tally up with what the actual complaint was referring to. Instead they seemed to focus more on how my account with MBNA was conducted. They did state that MBNA made commercial decisions i.e. they will make more money by not offering me a loan and charging more on my credit card and thus making more money.

 

I am not hijacking your thred here, I just wanted you to know that you aren't alone taking on this bunch of clowns. I have been assured that all of my statements will be with me this week and they battle can commence. I will update my thread as we go along. I will watch yours with interest.

 

Good to see that your are being realistic in knowing that you will have to commence proceedings against MBNA, but I know that it just eats away at you when you want to know how the FOS conducted their investigation.

 

Best of luck

[angry cat]

This is a new thread - sorry if it is in the wrong place but it refers to the Financial Ombudsman, therefore I thought it best to post it under general.

 

I have written copious letters to MBNA complaining about a mis-sold Payment Protection Insurance plus unlawful penalty charges. MBNA ignored they majority of my concerns and directed me to take my complaint to the Financial Ombudsman.

 

I registered my complaint with the FOS in September 2005-

 

The summary of my complaint was

"In May 2005, I wrote a letter of complaint to MBNA as they had failed in their 'Duty of Care' to me as a customer. They flouted the Banking & Insurance codes by selling me almost useless Payment Protection Insurance (PPI) Together with the fact that my insurance claim was fraught with problems (my disability claim was a accepted by MBNA) My Insurance claim was registered in 2002 and although my claim was agreed, the payments were almost always late, resulting in Late Fines "Unlawful Penanlties. At the point of sale, the insurance that I had purchased was mis-leading, not 'Crystal Clear'. There cleverly written "Unfair Conract Terms" were not in intelligable language, these terms have put me at a disadvantage because I was not clear about their meaning in the 'Exclusion & Limitation clauses' My claim has now come to an end, I am left with a huge debt to MBNA, made up of Monthly PPI premiums late fines and interest charged. I am still unwell, MBNA continues to charge the Monthly PPI premiums, but I cannot claim on this PPI and now MBNA have now breached the contract"

"MBNA breached the agreement by not telling me that they had changed insurers 'We will not change the Terms & Conditions of this insurance without writing to tell you' They used Unfair Contract Terms in the Limitation & Exclusion clauses, making their contract unintelligable to me, putting me at a disadvantage and leaving me with a huge debt made up of interest and monthly PPI premiums - a puchased insurance that I cannot use/claim on. I wish the interest to be refunded and the PPI insurance premiums charged since registering my claim to be refunded. MBNA must fully resolve all my concerns and be made accountable"

 

MBNA cancelled my PPI after I had written several letters of complaint to both their initial insurer - London & Edinburgh & MBNA. They cancelled the insurance after changing the insurance to St Andrews insurance, but they failed to inform me why? in fact, they did not inform me at all, the monthly premiums ceased to be charged and ceased to be recorded on my monththly statements.

 

I have written copious letters to the FOS adjudicator, but he fails to see my point of view - The FOS have never informed me that Contract Law is not within theirjurasdiction.

The only recommendation was that the adjudicator made was to contact MBNA and a negotiate a repayment plan, however I had already informed him that I do not admit the debt and any payments that have been made to MBNA have been marked "Without Prejudice" - Payments made in Good Faith but Under Protest.

The FOS adjudicator did award me £50 which I refused because MBNA had just fined me a further two amounts of £25 = £50 and I stated to the FOS. "MBNA have just fined me a further £50 which makes a mockery of your award of £50"

 

Finally, I am now in receipt of a letter from the FOS Ombudsman and this is a Final Response to which there is NO APPEAL !!

 

My complaint has been turned down in its entirety and to be frank I wish that I had not written to the FOS in the first instance.

they have totally ignored several of the issues raised?

However he does appear to concede-

"The Insurance terms are, I agree, complicated" "but I do not consider them to be any more complicated than they need to be. In fact, thay are clear and unambiguous"

The Ombudsman makes no mention of the Fact the MBNA breached the contract by changing the insurer without telling me?

 

Now, I will turn to the Penalties, as stated I have been fined 52 times by MBNA, the majority of these fines I have managed to get refunded, but not the interest plus there are three fines that still require refunding to me. I raised the issue with the FOS and informed them that I had evidence that these fines remain oustanding but the Ombudsman chose to ignore?

Initinally the FOS stated that MBNA could maike the Charges because of their tariff in the T&C's.

However, the Ombudsman FOS has done an 'about turn' and you guys may find this interesting!!!

I quote-

***"As far as the late payment charges are concerned, I am familiar with most of the material you have sent me. There have of course been further developments in this area in the last week or so (his letter dated 13 April 06) I accept the fact that charges are published in a firm's tariff does not necessarily mean that they are fair"***

 

He goes on to say-

"However, I also note that refunds have been made in this (my) case. I would also observe that the steps that MBNA have taken in your case when payments have been made late go rather further than what would usually be expected. So, even if you are right that the charges may not reflect actual losses in many cases. I think it is likely that they do here"

 

Now what about this, the FOS have know closed my case and will not enter into any more correspondence with me, but I have the proof that MBNA still owe me for penalty fines levied, admittedly not for a lot, but they still owe me about £78 and I cannot even send the FOS my evidence to prove that fact!!! Utterly disgraceful and all that they can say is-

"There are no grounds with which we can uphold your complaint"

 

I sincerely hope that anyone who reads this post, will NOT waste their time and expenses in registering a complaint with the obviously biased Customer Relations Department of Financial Institutions - called the Financial Ombudsman Serrvice.

 

I have sent the (Library) preliminary letter to MBNA requesting a refund of the remaining charges. I have received their reply dated 7 April 06, which enclosed their complaints prodedure? FOS etc! "Please telephone the Customer Advocates Office" "We will ensure that you receive a full response by 30 April 2006"

 

Now, if anyone out there has any legal expertise I am at the stage where I need ADVICE!

I am due to send of the Before Action Letter-

Do I send that off, or if I have any hope about suing MBNA about my PPI issue, which must relate to the legalities of contract law matters-

Do I wait and deal with the two issues togther?

 

I hope that I have not made this post too complaicated.

 

Thanks

angry cat

[surreyscouse]

I'm no solicitor but I would deal with them seperately.

 

Reasons being:

 

A. Whilst the charges are as a consequence of the PPI miselling, they will be viewed as a seperate entity. Mainly because MBNA's stance is they did nothing wrong on the insurance and as such it was YOU who broke the terms of their contract. Whilst we know this is wrong, they can probably make some sort of account as to what actually happened like they have done for FOS.

 

B. Deal seperately because I would hate to see you lose out on both counts (Premiums and charges) if they are dealt with as one claim. I would approach both matters seperately and cautiously

 

Finally, I responded to your post in the MBNA thread about my own dealings with FOS. I whole heartadly agree that they are useless, but at least every time they deal with a complaint it costs the banks about £350 regardless of the outcome. So for the sake of filling in a form, I will keep doing it although I agree that they are pathetic.

[angry cat]

Hi Surreyscouse-

Thanks for your reply!

 

Yes, I think that you are porobaly right, in that I should deal with both issues separately-

 

Not all the charges are a consequence of the PPI mis-selling and how MBNA's insurers dealt with the insurance claim payments, but the majority are.

Therefore I will forge ahead and send the Library Before Action Letter. It was not I, that breached the Terms & Conditions, it was MBNA that breached the Insurance Policy T&C's by changing the insurer, without telling me and at that time my insurance claim had finished, but I was still paying the monthly PPI premiums. MBNA were required to inform me, by their own T&C's to inform me of any change to the insurer and thus any change to the policy wording - They did not inform me of the change. I onlu discovered that the insurer had changed because, MBNA sent me a policy showing the T&C's (for my information) but the insurer had totally changed from London & Edinburgh (underwritten by Norwich Union) to St Andrews Insurance who I believe are Bank of Scotland. When I raised the issued in the form of a complaint, saying that MBNA had breached the T&C's all of a sudden thay stopped charging the monthly premium, witout notifying me, the customer.

 

It is clear that I have to deal with the PPI mis-selling or MBNA's breach of contract separetly!

 

I have managed to pay the required monthly minimum payments "Without Prejudice", but am now in arrears by £158.35 approximately two months and I do not have any intention of paying MBNA any more money - I do not admit to the debt and I have always disputed it.

 

No doubt MBNA will start to threaten me again with a Default Notice, to scare me into paying, they did that before and I payed the required amounts "Without Prejudice" because I had takem my complaint to the FOS and I felt sure that the FOS would have upheld my complaint - I was proven wrong

 

 

So, if there is a Law student or retired Legal Eagle out there, I would love some help/advice on contract law, or would it be business law.

 

My last option is to go to Trading Standards about the PPI mis-selling, but do not hold out much hope.

 

Thanks

 

angry cat