Taking on MBNA

[rob1306]

Hi All,
After stumbling across some old credit card statements I saw that I was being charged something that looked like PPI. The more recent statements that I found didnt have it on. I've had the card since 1997 and I dont recall agreeing for PPI so I submitted a request to MBNA for details of the original agreement on the 21st July.

I received a curt anonymous reply confirming that PPI had never been attached to this credit card. So I followed up with another request for a full transaction breakdown since 1997 and a copy of the original agreement that I had filled in.

Result they sent back a full list and a copy of the orginal agreement confirming that I had chosen no PPI. However in the transactions they have kindly listed for me, despite not requesting PPI some 6 years earlier when I took out the original agreement, each time I did a balance transfer from another card MBNA added a charge 'Payment Protection Cover' until the balance transfer was paid off. Subsequent balance transfers are accompanied with entries called 'Posted Credit Insurance Fees'.

I phoned MBNA today and asked them to begin with what was 'Posted Credit Insurance Fees'. She didnt know but confirmed that in July 2003 our agreement was changed and MBNA added PPI to the account. I told her I didnt sign anything or consult with anyone but more worryingly she didnt know what 'Posted Credit Insurance Fees' were either. It looks like payment protection for the balance transfer repayments but I dont recall signing any agreement to include this nor was it mentioned when I asked to perform a balance transfer request. In those days I would have requested the balance transfer over the phone and given them the card number I wanted to transfer in from.

So in the meantime whilst I wait for MBNA to reply does anyone else know if these payments are all PPI fees in another guise?
'Payment Protection Cover'
'Posted Credit Insurance Fees'
'Credit Insurance Plan Coverage'

If it turns out these are PPI fees do you think I have a strong case for submitting a request for a full refund of all the fees?

Thank you

[Victoria27]

Re: Taking on MBNA

Hello and welcome, Rob.
Yes, I believe you do have a strong case for a refund.
As I understand it, they confirmed that you did not request the PPI, but it was added later without your request.
You saw it at your statements and your copy of the agreement.
I think it is a very good and strong ground for a complaint.
The fact that even their representative was not sure what some of the terms and words meant, makes it very believable, that you did not realised you had an additional optional product attached to your account, therefore you did not cancel it.

Also, as I understand, there are no transcripts of the telephone communication, where you requested that insurance. Because you did not ask for it, it appeared without your consent.

Go for it and good luck.

We are here to help.

Best,

Victoria

[rob1306]

Re: Taking on MBNA

Hi victoria,
From my conversation yesterday I concluded that MBNA added the PPI insurance whilst the card was 'dormant' in July 03 with no balance outstanding as there is a gap in the transaction history between Juuly to Sept 03 when I arranged for the balance transfer to happen. At no point did I want PPI and I made that clear when I signed up for the card.
Would they have just added it in one of their changes to terms and conditions letters? I would have likely binned that as the card was 'empty' for all intents and purposes.

When or if they reply I think I will ask for a copy of the changes to terms and conditions from 2003. There are a few late payments but repayments back then were by postal cheques and sometimes I missed the cut off date, but again there is evidence to show that I made extra payments to put that right so again I didnt require or need any form of PPI what ever they choose to call it.

I'll sit tight but I'm not expecting them to return contact judging by other peoples experiences. I can see this ending up with the Financial Ombudsman.

Robin

[Victoria27]

Re: Taking on MBNA

Thank you, Robin.


It looks like a good case to me.
You can prove that you did not request it.
You made it clear you did not want it.
It was added without your consent.
You were not aware of it, otherwise you would have cancelled it.
You thought it was something compulsory, added to your account, like some service charge, which was not optional.


In my experience with MBNA, they were difficult at the beginning and rejected at first.
However, I wrote them back, stating they were wrong and gave them further 14 days to reconsider. They upheld then within 5 days.
They might try to reject at first (not necessary, but possible), in that case I would write back to them, giving further 14 days.
If it does not work, next step I would suggest, is to email to their CEO, challenging their decision. (I did it with Santander and HSBC, it worked), giving them further 14 days to resolve it prior to your escalating the matter. May be, even to go for their CEO department straight away, in case of their rejection.
You have 6 months after their rejection to take it to the Ombudsman.
There is no reason not to do it straight away, not to waste any time in case the MBNA rejects.
I personally did take my rejected case to the FOS straight away, however, at the same time I continued with the bank and got everything resolved without the Ombudsman.
I informed the Ombudsman that I continued to communicate with the CEO department of the bank and I kept them updated on my case. The FOS are happy if we manage to sort out our cases ourselves directly with the bank, even if they enter it in their system. So, you can do both at the same time.
May be it even will not come to it. Considering your personal circumstances, MBNA might well uphold your complaint.


I think you do have a good genuine case of mis-sale to win.


Best of luck.


Victoria

[rob1306]

Re: Taking on MBNA

Hi Victoria,
Thanks for your reply. had a call from 'Tan' who called himself a complaints manager at MBNA. I explained again the circumstances and he asked if I wanted to log a PPI complaint (still didnt explain what the difference was in the terms but agreed he could see PPI on my account). I said yes and he logged the complaint in their system. I should get a letter within 14days with a reference no for the complaint and then the usual up to 56 days for a decision. I said I would be taking this further if they did not uphold my complaint. I think once I've got that reference I will write to the CEO and see if we can quicken a decision out of them.

So watch this space and thank you for giving me the confidence to take this further.

Robin

[Victoria27]

Re: Taking on MBNA

Well done, Robin.
You should have the confidence.
As much as we would like to speed things up, I would give them 8 weeks as it is a legal requirement. If they delay it and will not resolve after 8 weeks, or reject, then you should take your next step, the CEO, to start with etc.
However, it is a good practice to give them their 8 weeks.
If we are reasonable and respectful, following the regulations, it gives us more good points in our cases.
We can say that we gave them enough tine to investigate our case properly. It looks more favourable for us.

Fingers crossed

Victoria

[rob1306]

Re: Taking on MBNA

Update 19th September: Yesterday got a letter from MBNA confirming that they have upheld my complaint and that I am entitled to a refund of premiums, plus interest charged on the premiums and less tax on the 8% interest that I would have earned. Now given their track record with me I'm just going to check their calculations cos I reckon they may have miscalculated. So thats 2 out of 3 claims submitted with a success so far, just waiting for Lloyds to reply. Still others to go back to after this one, now I have a feel for the process.
The lesson is you really dont need a claims agency just be organised, be persistent and dont take their initial No for an answer.
Many thanks to all who replied and I hope this gives encouragement to anyone else.

[Victoria27]

Re: Taking on MBNA

Well done, congratulations!
You are correct, that is the lesson for everyone.
Very happy for you
Victoria

[rob1306]

Re: Taking on MBNA

Hi,
Final update I've checked the MBNA settlement figure and I cant account for £16 in my favour so I've banked the cheque and thats the end of that one.

I've since had a reply from Lloyds and although there was no PPI charged they've admitted that a £5 fee was charged which they've now refunded.

So now its onto Cahoot and Santander. I'll start another thread for that one. So thanks to Victoria27 and all others on here who gave me the confidence to take MBNA on.

[Victoria27]

Re: Taking on MBNA

Excellent, Rob!
I shall look at your other threat
V