If youíre looking to make a PPI claim against MBNA the following page tells you all you need to know. Aside from explaining all the info you need in order to pursue your claim, we also explain exactly how to go about making your MBNA PPI claim. Of course, weíd love you to use us to help you with the process, but unless you have all facts first, how you can you decide the best way to proceed?
A bit of backgound on MBNA...
MBNA is one of the UKís largest credit card lenders. It was acquired by Bank of America in 2006.
MBNA sold PPI on its credit cards, but in June 2005 it also acquired Loans.co.uk, a broker that sold second charge mortgage loans from various lenders. Loans.co.uk ceased trading due to the economic climate, but not before the Financial Services Authority (FSA) had fined Loans.co.uk £455,000 for breaching its regulations and principles when selling PPI. The FSAís disciplinary report made reference to Loans.co.uk customers receiving insufficient information and thus being unable to make an informed choice, and to the company making insufficient disclosure of policy exclusions.
MBNA PPI Claims - were you mis-sold?
Was it made clear that your PPI involved payment of a single premium plus interest? Were you made aware of the unfavourable terms that applied in case of early cancellation? And was your PPI written over a different term to that of the loan? Issues such as these have given rise to many successful PPI claims.
Was it made clear that your PPI involved payment of a single premium plus interest? Were you made aware of the unfavourable terms that applied in case of early cancellation? And was your PPI written over a different term to that of the loan? Issues such as these have given rise to many successful PPI claims.
- The Customer Advocate Office ñ PPI, MBNA Europe Bank Limited, PO Box 1004, Chester Business Park, Chester CH4 9WW.
How long will my MBNA PPI Claim take?
MBNA simply states it will aim to complete its complaint investigations within eight weeks. If the complaint is rejected, or you are dissatisfied with the amount offered, or MBNA has not closed your complaint within eight weeks, you can refer the matter to the FOS - www.financial-ombudsman.org.uk. The FOS resolves most complaints within a few months, but in exceptional cases can take over a year.
Any compensation offered should be sufficient to put you back in the position you would have been in had you not purchased PPI. Usual procedure is to offer a refund of the PPI premium plus interest paid on it, with interest calculated at 8%. Credit card PPI claims often involve payment of larger amounts, as your ability to make repayments on the card balance will have been affected by the need to also pay for PPI. An additional amount should be offered to cover the amount the card balance would have reduced by had you not been paying PPI.
Most policies sold by MBNA subsidiary Loans.co.uk were single premium policies, with the premium added to the loan amount. The insurance may have had a term of three to five years, yet the typical term for a secured loan is 15 to 25 years. However, the insurance premium, plus interest, was repaid over the full term. Those seeking to cancel single premium PPI early would need to continue paying interest on the premium.
The FOS ruled in favour of the customer in 97% of the MBNA PPI cases it closed in the six months to June 30 2012 ñ much greater the industry average of 71%. This strongly suggests that MBNA may not be properly considering PPI complaints it receives, and that customers are having to go to the FOS to get the compensation they deserve. The equivalent figure for Loans.co.uk is lower, at 60%.
The FOS also received almost 7,000 new PPI cases from MBNA customers in this six month period, the third highest of any institution and higher than the numbers from some of the best known banks. Much of the mediaís coverage of PPI mis-selling focuses on the main UK high street banks, but many other types of financial institution contributed to this scandal. Data suggests MBNA may have sold a very large number of unsuitable PPI plans.
One thing to bear in mind before making your claim either through us or direct with MBNA is whether you were sold PPI by MBNA or an intermediary. If itís the latter, then youíll need to make the claim against them, rather than MBNA.
Next steps to making your MBNA PPI Claim...
Now you know all about MBNA PPI claims, let us take all the stress and hassle out of your hands. Simply fill in the form on the right and weíll crack on and get your claim processed straight away.
All information presented in this article is accurate as of December 2012