EGG Card Telephone selling of PPI and reclaiming

[BigBilly]

Hi there,

 

I am in the early stages of reclaiming my PPI from Egg Credit Card after it was sold to me over the phone,. Has anyone had any success in getting it back from them ?

 

There is a fair bit on the web about people who have claimed against Egg but these seem to be about online applications. I was sold it when i did a balance transfer on the phone two years after I got the card.

 

Egg Credit Card were fined in December 2008 by the FSA £700,000 for mis selling over the phone going back to sales made after January 2005. I suspect it is early days yet as the fine has only just been made. All customers who took out PPI after 2005 have been sent a letter.

 

 

 

My policy was taken out in September 2003 (over the phone whilst eating my dinner btw.....) so EGG are saying my policy predated the FSA investigation. However when i spoke to he FSA they said that I could still claim if I felt that I been missold PPI - which I do.

 

 

I have written anyway using a template letter .I believe that I was missold as I have income protection with my job and was not explained the costs of the PPI. Whilst I have closed the account and paid of the card I was shocked to work out that I had paid lots to Egg for this when I did not need it.

 

Anyone sold PPI over the phone by Egg ever get a paper document subsequenlty ? I didn't.

 

I will update this thread with my progress.

[skeptic]

Hi there,

 

I am in the early stages of reclaiming my PPI from Egg Credit Card after it was sold to me over the phone,. Has anyone had any success in getting it back from them ?

 

There are quite a few success stories, here (and some more salutory tales) if you search the forum.

 

There is a fair bit on the web about people who have claimed against Egg but these seem to be about online applications. I was sold it when i did a balance transfer on the phone two years after I got the card.

 

Evidentially, it is considerably easier to successfully pursue a Credit Card PPI claim which arises from a telephone call, than from an on-line application.

 

Egg Credit Card were fined in December 2008 by the FSA £700,000 for mis selling over the phone going back to sales made after January 2005. I suspect it is early days yet as the fine has only just been made. All customers who took out PPI after 2005 have been sent a letter.

 

The FSA had no power to regulate insurance contracts before 14 Jan 2005, so their powers of investigation were limited to sales which happened after then: See note 2: FSA announces review of general insurance regulation

 

So, this is extremely helpful to you, because

1. I would argue that the relevant start date for any Limitation period for a PPI claim against Egg is now December 2008; on the basis that you (as an ordinary consumer) could not known or discovered with reasonable diligence that the product was mis-sold to you until the FSA finding against them* and
   
2. The regulatory authority, whose job it is to oversee these tranasctions has ALREADY decided that they were doing so unfairly. This has to be extremely persuasive to a court; given that the FSA (unlike us) will have had access to the "internal" workings of the sales and the documents they used.
   
3. With a properly drafted claim, the burden of proof will, effectively rest with the Defendant to show that they didn't mis-sell the product. So, the FSA ruling raises the bar even higher to the point were, they will have to show that, notwithstanding that SOME of their sales were unfair, the sale to you was fair.
   
4. Given that your claim predates the investigation, the Defendant's argument would have to be, something like: "The procedures we used in 2003 we fair... but we changed them, so that some of them became unfair from 2005 onwards (and its just a bad luck that the introduction our unfair procedures coincided with the first possible opportunity the FSA had for regulation of these contracts)"... which isn't, I'd suggest, terribly convincing.
   

* In my view, the Litigation risk associated with this issue alone is enough to be likely to prompt a reasonably good settlement in favour of most Claimants, if it is used properly in negotiations: because the cost to a Defendant of losing at Court on this point is potentially staggering.

 

At the moment, the Defendant's are arguing that any claim which arises from an agreement made more than 6 years ago is statute barred.

 

However, if a Claimant were to have a Court find that he could not have discovered the mis-selling with reasonable diligence, until the FSA made a finding against their Defendant, the claim window would expand to potentially anyone that had been mis-sold in the 15 years prior to the finding and who was prepared to issue within 6 years of it.

 

 

My policy was taken out in September 2003 (over the phone whilst eating my dinner btw.....)

 

Accordingly, you should ensure that any claim you bring is issued on or before 31 August 2009 (technically any date upto and including the working day before 6 year anniversary)... that way you'll defintely avoid any Limitation Act issues.

 

Anyone sold PPI over the phone by Egg ever get a paper document subsequenlty ? I didn't.

 

This seems to be fairly common, although I've not had dealings with Egg personally.

 

In general, though, not having received any documentation subsequent to the call is a very strong point in your favour... because you cannot be said to have been aware of the terms of the PPI policy and/or be deemed to have accepted them by your conduct subsequently... if you never received them.

[BigBilly]

I received a standard reply from Egg saying that they are dealing with my complaint and that they have eight weeks reply. Realistically they will drag things out and so they have until the end of March before I go to the ombudsman.

 

I see that people are having some success with Egg having made on line "acceptance" of PPI.

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/176719-egg-ppi-claim-issued.html

 

As i have pointed out in my first post as someone who was sold PPI over the telephone I never recieved any T+C's to look over which I as mentioned in the last post must give me a pretty strong case.

 

Has anyone got any links to PPI sold by egg over the phone ? or a info about this through the court. Most post seem to center on on line applications.

[militantconsumer]

I suggest you send them a SAR. This will be a 1 inch thick pack and will cost you £10. It makes for very revealing reading. For example, it details call notes made by Egg employees during phone calls, even where they claim they no longer have an actual recording.

[simmo66]

hello i got a full refund of my ppi from egg with 8% interest, all i did was make two phone calls, my policy was sold to me over the phone when i rang up egg to pay my cc bill i told them as i did not ask for the policy i was miss-sold and i gave in to high pressure sales good luck

[123123123123]

I have subscribed to yout thread mate aas i am aslo in early stages of claiming from egg.

[BigBilly]

Cheers Guys

 

simmo66 When I called Egg about telephone selling of PPI they tried to fob me off. They suggested that FSA findings in December 08 (when Egg got fined ) only went back to January 2005 when the FSA assumed regulatory powers. Since my PPI was taken out in 2003 they are saying FSA terms of conduct do not apply to me. I feel this is a red herring as I never got any t+c's sent to me.

 

I will apply for a subject access request. I assume there is a template letter. Better send ID as well as it seems that they use this as a method of stalling. Anyone know what ID they accept ?

[militantconsumer]

I don't think you need to send any ID but they take issue if you don't sign. The advice people normally give is to sign in a fairly distinctive way so that you will recognise your signature if it ever shows up again (Photoshop and all that).

[BigBilly]

Have sent off for the SAR now. Will be interesting to see what they send back

 

BB

[BigBilly]

Hello Just got an egg letter through the post. It is interesting to note that this has just happened 7 days before the end of the 8 week period before I can contact the Ombudsman

 

When I wrote to them I asked for a complete breakdown of all payments plus a refund with interest on top. I got the following letter

 

"Dear Mr XXXXXXXXXX

 

Thankyou for your recent letter. I am sorry to that you have had cause to complain to us and can assure you that we take all concerns raised by our customers very seriously.

 

After carrying out out a comprehensive review of your complaint, I have arranged for a full refund of all premiums charged to your account , together with the associated interest charges.

 

The total amount concerned is £2499.99 , and this will be credited to your Egg account in the next 3-5 working days.

 

On the basis that I have been able to resolve your complain I have now closed your complaint. If for any reason, you wish to pursue thsi matter further you may refer your compliant to the Financial Ombudsman Service within six months of the date of this letter - a copy of their leaflet is enclosed for your information.

 

I would like to take this opportunity to assure you of our commitment to providing you with excellent customer service

 

Yours

 

KXXB HXXD ( or something !) "

 

I thought was good news then wondered if they were fobbing me off.

 

I read the following in the Sunday Papers

Banks fobbing off PPI mis-selling complaints with 'goodwill' payments | Money | The Observer

 

It seems coincidence that my figure was around the standard 2,200 they have offered other people.

 

I did ask Egg for a compleat breakdown of all my payments as I am not , bought thought , my claim was worth around 5K plus interest.

 

Its interesting also they have not made an offer and now consider the complaint closed without asking me what I think of the offer. They also are not admitting liability ( or are they by making the offer.

 

All in all its a very brief letter. The other thing is I no longer have an Egg account.

 

 

Should I touch the money ? Will that end any further claim ? ....

[militantconsumer]

This is a sign that they think they will lose any claim you bring.

 

It depends how quickly you need this sort of money, or whether you can hold out for more. I would be tempted to complain to the FOS anyway, but it could take a year by all accounts!

 

You could also accept this money as part payment.... but knowing Egg they will want you to sign your rights away before they pay you anything.

 

Oh yes, and don't forget to make sure that they agree to remove any defaults resulting from these PPI charges.

[BigBilly]

Thanks for that. I think I can hold out. Egg initially told me that I was not entitled to anything and now they send this 8 weeks later.......will go to FOS now.

 

Oh and thanks for the note about charges I think I did once go over my limit because of the PPI charges. That was when in fact I realised just how much PPi was costing me.

[militantconsumer]

Oh and thanks for the note about charges I think I did once go over my limit because of the PPI charges

 

I wasn't talking about the £16 charges (which were originally even higher than £16).

 

I was talking about if you have ever been so late on payment that you have a big "D" for default on your credit file.

[BigBilly]

ok , I have never defaulted so i think i'm alright. PPI did send me over my limit once .

Thanks