MBNA Credit card PPI for a director

**di30** · 23rd July 2011, 22:45:PM

Re: MBNA Credit card PPI for a director

Hi and welcome to Legal Beagles.

The thing is with online applications, it's more of a matter of them being an "opt out" rather than "opt in", so it's possible you just continued with the application form assuming it was all part of the package.

I understand as well going by some other people's experience, if they did manage to opt out, they received a phone call sometime after the application where they were pressurised into taking it out.

Or going back to online, it's been known the application would not process if the PPI was not accepted.
I'm not saying these apply to you but nothing would surprise me in these cases.

Being a director I think you may have a good point here, but some policies differ from one company to the other, it maybe worthwhile you trying to get hold of these actual details of the policy booklet from the business (from the time you taken this out) if your able to, these are normally provided free on request.

But in my opinion on this, it's a possible reclaim, please feel free to wait for other opinions on this as well as they may know more on issues I've not answered to.

Do you have any paperwork for this account?

To make a reclaim, you pursue the ones who sold you the account, complete the reclaim questionnaire, and keep copies for yourself as well, they have 8 weeks normally, but as there have been a backlog, they may ask for more time, the FSA have given the main of the banks more time to deal with the backlogs, and the business should let you know if this applies to you.

Below there is the details to the reclaiming, including the questionnaire, good luck on this and ask for more help if required.

http://www.financial-ombudsman.org.u...stionnaire.doc

http://www.legalbeagles.info/forums/...ad.php?t=22339

**pompeyfaith** · 23rd July 2011, 23:07:PM

Re: MBNA Credit card PPI for a director

Can anyone tell me if I had of claimed against the PPI credit card policy when I was between contracts, would I have been eliglble or would MBNA not have paid and deemed being an I.T. contractor through a limited company to be of 'self-employed' type status?

Well going by expierence they would most certainly find a way of not paying out.

Do you pay your own tax to HMRC ? the reason I ask is because if you do that surely must be self employed status.

Regards

**japjox** · 24th July 2011, 06:52:AM

Re: MBNA Credit card PPI for a director

hi and thankyou both for replying to my query.

Yes i do pay my personal tax to HMRC myself (I have an accountant who calculates what I owe). I only trade as a limited company for my IT contracting work as this is standard for IT contractors. I do not employ anyone...I am simply a one man band IT contractor using a Limited company to process payments through for the work I do.

I work on short term contracts that are normally 3-6 months.....when a contract ends, I then need to find another contract, which could be straight away or there can be gaps with no work...this is just how it is an IT contractor or anyone working on short term contracts I guess.

japjox

**pompeyfaith** · 24th July 2011, 18:30:PM

Re: MBNA Credit card PPI for a director

Then you are self employed so you need to check the policy wording to see what there terms and conditions are as regard to the self employed.

Chances are you are not covered as most if not all do not cover the self employed as these policies are very much weighted in favour of the insurer and not the policy holder.

Regards

**Paul210** · 25th July 2011, 08:46:AM

Re: MBNA Credit card PPI for a director

PF is right, you are in effect self employed, the policy would have terms in there stating that if you have significant inluence over the company that you work for such as are a company officer (director/company secretary) or have a significant shareholding (depends on insurer but usually 50% or above).

**japjox** · 25th July 2011, 18:16:PM

Re: MBNA Credit card PPI for a director

Thanks all for the comments.

MBNA have not upheld my claim/complaint for mis-sold PPI, as they said I opted for PPI (I didn't!) and I noticed there is no written signature on the application form, as they said because it was done online, it was an 'electronic' signature.

I'm saying I didn't select PPI and I reckon they added it after my application for the credit card and also I don't believe I would have been eligible for PPI due to my employment status.

The FOS have now taken on my case, so let's see what they think.

Does anyone know how the FOS view an IT Contractor who is a director of a one man band Ltd company?

I hope i have a case, as I feel cheated!

japjox

**WendyB** · 25th July 2011, 21:36:PM

Re: MBNA Credit card PPI for a director

As far as I am aware, if you are a director of a limited company, you are employed by the company, and therefore not technically self employed. Do you pay Class 1 NI, and are your wages taxed at source on a PAYE basis? If so, you are an employee of the company. This was the rule when I worked for HMRC, it may have changed recently.

Have a read of this, it will probably answer your questions Employment status of company directors | Business Link

**di30** · 25th July 2011, 21:44:PM

Re: MBNA Credit card PPI for a director

Also, to what I am aware going by some other's experiences of on an online application form, its a matter of opting out as it was already pre ticked.
Then its also known that if the policy was then opted out of, a phone call would arrive to get this changed to an opt in again.

Don't know if this applies to you, but if you can recall on any phone calls, it maybe worth asking for a copy of the recordings.

Have you also requested for a Subject Access Request (SAR), where they have 40 calendar days to comply and send all the data they hold on the account?
You pay a one off £10 cheque or postal order payment for this request.

(Just looked back on my other post and realised I explained something about opting out lol).

**pompeyfaith** · 25th July 2011, 22:01:PM

Re: MBNA Credit card PPI for a director

Wendy,

It says above that the company has only one employee being himself and that his tax affairs are all done via his accountant and probably on a self assessment and thus not via PAYE.

The majority of non-executive directors are also regarded as employed by the company or self-employed under a contract for services, depending on the terms and conditions of their appointment.

Regards

**WendyB** · 25th July 2011, 22:27:PM

Re: MBNA Credit card PPI for a director

Our tax, wages and PAYE are done by our accountants too, but our directors aren't self employed.
Any dealings with HMRC can be done either by the company, the sole trader, or an accountant, it doesn't matter which, as long as the correct amount is paid etc. We can't presume that just because an accountant does it, it's self assessment. That's why I put the link up, so teh OP ould help determine what class he falls into.

**CleverClogs** · 25th July 2011, 23:53:PM

Re: MBNA Credit card PPI for a director

Originally posted by pompeyfaith View Post

Well, going by experience, they would most certainly find a way of not paying out.

Correct - they would, even if it meant twisting the skin off a fart to find that excuse.

**japjox** · 26th July 2011, 18:33:PM

Re: MBNA Credit card PPI for a director

Originally posted by WendyB View Post

As far as I am aware, if you are a director of a limited company, you are employed by the company, and therefore not technically self employed. Do you pay Class 1 NI, and are your wages taxed at source on a PAYE basis? If so, you are an employee of the company. This was the rule when I worked for HMRC, it may have changed recently.

Have a read of this, it will probably answer your questions Employment status of company directors | Business Link

Hi Wendy
Thanks for your comments.
I do indeed pay Class1 NI, but only for a relatively small salary with the main income taken in dividends.
I believe that an IT contractor, depending on what type of contract work they do, can be a director of a limited company and still be classed as 'self-employed' in the eyes of HMRC.
I don't know if you have heard of IR35, but see here for more info http://www.contractoruk.com/ir35/wha...explained.html

A few years ago I was investigated by HMRC to see if I came under IR35 and I was successful in proving I didn't, so in the eyes of HMRC and by their own definition I was classified as 'self-employed' at the same time as being a director of the Ltd company i was trading through.

So having gone through the stress of being investigated by HMRC and the end result of HMRC agreeing I was self'employed, I don't think any bank or financial organisation can dispute the fact.

For an IT contractor, things are a little different to a normal scenario of a one-man band Ltd company director.

It's an interesting scenario that i'm sure to have lots of hassle with MBNA :tinysmile_grin_t:

Thanks

japjox

**WendyB** · 26th July 2011, 19:52:PM

Re: MBNA Credit card PPI for a director

Oh good, hopefully you will be able to see that to back up your case for mis-sold PPI then. I don't know how easy MBNA are to get back PPI from, but if it's anything like as easy as it was when I reclaimed charges, you'll be laughing.

**japjox** · 26th July 2011, 20:00:PM

Re: MBNA Credit card PPI for a director

Originally posted by WendyB View Post

Oh good, hopefully you will be able to see that to back up your case for mis-sold PPI then. I don't know how easy MBNA are to get back PPI from, but if it's anything like as easy as it was when I reclaimed charges, you'll be laughing.

Thanks Wendy.

My case is now with the FOS, but i will certainly write to the FOS and let them know that I was investigated by HMRC who confirmed i was viewed as 'self-employed', despite being a director of the Ltd company my contracting payments went through.

I will let you guys know when i get something back from FOS. I reckon it may be some time, but I have also written to MBNA as their letter saying they did not uphold my case crsosed with the fact the FOS had taken on my case.....so they only found out last week that the FOS are on board now.

japjox

MBNA Credit card PPI for a director

MBNA Credit card PPI for a director

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