Mbna & Ppi

[ScarletPimpernel]

My OH had an MBNA credit card which was defaulted some just over 2 years ago; since then she has been in a debt management plan arranged by CCCS. Recently PPI premiums had started to appear on statements. With CCCS' agreement, I drafted a letter stating that my OH had no knowledge of asking for PPI, did not want it and asking for a refund of all premiums. We asked that MBNA produce proof that she had asked for PPI if they thought she had. MBNA replied stating that she had requested PPI from the outset, that the premium had been shown on every statement (this is simply incorrect as to fact), but that they had now cancelled the PPI. They refuse to refund anything, and failed to provide proof that PPI had been asked for, though they did send a copy of the standard policy!

From this, it seems that the policy is void if an account is in default for more than 90 days.

My question is this: Should MBNA have continued to charge premiums, and interest thereon, when the policy was void? Secondly, can a CCA request be used in respect of PPI policies?

[callumsgran]

Number 1 not sure without checking further, but in my opinion no!
Number 2 send a Data Protection Act Subject Access Request first, this should give you all the details you need,

[ScarletPimpernel]

Rereading MBNA's letter, I find that it refers to an account number which does not relate to OH at all!

We have now sent another letter asking them to respond to the original letter, but this time basing their reply upon the correct account.

Part of me is hoping that they'll send the same standard letter with the correct account number, so I can then send them copies of 11 statements with no mention of PPI and ask them to explain.

I have also now got hold of a copy of the T & Cs for their PPI, and the policy is considered terminated if the cardholder fails to make the minimum payment 4 times.

[ScarletPimpernel]

An update.

We have now sent a Subject Access Request to MBNA, and await the result. In the meantime, we wrote to MBNA again challenging the accuracy of their statement that 'PPC premiums were clearly shown on every statement', and enclosing 12 month's worth of statements on which PPC is notable by its absence. We have also asked them to explain how, if no premium is shown, and no money taken, cover was provided as they say it was, and asking again for proof that PPC was requested.

They replied with what appears to be simply a modified template letter stating that: PPC was requested at the outset of the account; that the T&Cs 'would have been sent out at the time'; and that cover was provided. They have completely ignored the points we raised about statements and the lapsing of cover when an account is defaulted. However, some 3 months after the original request, they say that they have 'requested a copy of the original application so we can check that our records are correct'. In other words, they aren't sure if what they have written is accurate at all!

We have now written to the Customer Advocate Dept at MBNA and given them a final chance to resolve this, or the next communication will be a LBA.

[Todge]

ScarletPimpernel

It's odd, isn't it, that MBNA terminate the PPI policy if the cardholder fails to make the minimum payment 4 times?

I'd have thought that as the agent for the insurance, and as a client of theirs was possibly in difficulty, they'd have given you a quick courtesy call with regard to establishing the circumstances and helping you make a possible claim?

Clearly they are not on 50%-60% commision for claims work ...