Thread: egg credit card ppi

Hello Tiger

You were entitled to receive as much information as possible from Egg regarding the insurance product that you were purchasing in order to help you make an informed decision and to decide whether the product met your particular circumstances. You should have been made aware alternative products available in the market place, how long you would be able to make claims on the PPI as a self-employed person, and all exclusions clauses.

Egg are obliged to provide you with this information even as part of a 'Non Advised' sale via their website. Do you feel that you have been treated fairly? You should also check out this link to read up on PPI mis-selling: PPI

IF you don't feel you have been teated fairly, then could send a letter saying something like this:


Date


Your Ref xxx

Re: Account xxxx


Dear X

Thank you for your letter of date .

I write to inform you that I am not satisfied with the response you have provided to my initial complaint. I assert that I have been mis-sold Payment Protection Insurance (PPI) taken out on the above named credit card account, by your organisation.

Whilst the credit card application was made via your website and therefore conducted in a 'non advised' capacity, Egg still had an obligation to me the borrower, to provide sufficient and appropriate information to enable me to make an informed decision as to the suitability of both the credit card and the PPI to meet my needs and financial circumstances as a self-emplyed person. I should also have been made aware of alternative options available, or comparative costs of similar PPI products from other suppliers, which information as a well known financial institution, you would most certainly have had access to.

The Financial Services Authority (FSA) provides guidelines which your organisation should adhere to while making both Advised and Non-Advised sales. Where a Non-Advised sale takes place, as in my own case "The customer must, however, still receive sufficient information on the product to enable them to make an informed decision as to whether it meets their own demands and needs." (FSA)

At no point did I receive any such information, either by letter, document or telephone call which followed the above guideline. The documents that you have provided copies of do not contain any of the information that I have outlined above and cannot, therefore, be deemed as meeting the standard of care which you should have provided.

You state in your letter that you sent me the terms and conditions of the card that related to the insurance product. I assert that this document did not contain sufficient and appropriate information to allow me to make an informed choice about the PPI purchased and that you have taken advantage of my lack of knowledge regarding the product sold to me. I assert that I was neither provided with sufficient information regarding making claims within the PPI as a self-employed person, nor that there were certain exclusion clauses that would result in my not being able to make a claim on the policy. (If there are bits in this section that are not appropriate leave them out or alter them).

I reposed absolute trust in your ability as a financial institution to provide a reasonable level of care and skill in ensuring that my best interests were met when taking out a financial product with your organisation. This has not been the case and I am extremely shocked and disappointed.

I would further suggest that the Principles of Business which are legally binding on Egg under the Financial Services and Markets Act 2000 and which are contained in the FSA Handbook, have not been followed. Therefore you are in breach of regulations.

I would remind you that the FSA takes the mis-selling of PPI extremely seriously and you will be aware that recent investigations by both the FSA and the Competition Commission have found that lenders continue to engage in "poor sales practices" and that "customers were not informed orally of both the monthly and total cost of their PPI". (FSA report, 30 September 2008).

I request the return of (insert amount here plus interest) within 14 days of receipt of this letter by you. If you do not comply with my request, I will have no option but to refer my complaint to the Financial Ombudsman Service (fos)/escalate my claim to the courts. I should remind you that the FOS take the issue of mis-selling of PPI extremely seriously and in many cases, have imposed large fines on financial institutions who are in breach of regulations.

Yours sincerely


Your name here



BTW, for some bizarre reason, the number EIGHT on my computer is coming out as a smiley so you'll need to amend that in the letter!!

HTH, Painty