Citi bank PPI

A question about : Citi bank PPI

I have had a reply from Citi Financial regarding credit card PPI mis-selling. I have 2 concerns.

1. Card Protection Policy (CPP) was included in application, they have admitted this was mis-sold and as this was paid before Jan 2005 they have sent me a cheque for Ј86 , a refund of premiums plus 8% interest. SHOULD I CASH THE CHEQUE???

2. regarding mis-sold PPI, they are not upholding my complaint. stating reasons .
Whilst we do not accept all of your allegations we do acknowledge that there may have been flaws in our sales process. However, despite this I am not persuaded that any of these sales failings would have affected your decision to take out the PPI policy. This is because, taking into account your circumstances at the time of the sale which are disclosed in your questionnaire , it is clear that you had no other means at the time of protecting your loan repayments.

You stated in section D.5 of the questionnaire that you would have received no pay from your employeer if you were off work due to an accident, sickness or if you were made redundant. You also stated in section D.6 that you did not have any other means of making your repayments if you were unable to work through sickness, accident or unemployment.

SHOULD I ACCEPT THIS DECISION ? WHAT IS MY NEXT STEP??

I value your opinions as this is my first experience with this process.

Best answers:

• these are the reasons I listed in my questionnaire;
  • The policy exclusions were not explained to me either before or at the time I took out the insurance. I was therefore unable to make an informed decision as to whether this insurance was appropriate for me•
  I now believe the insurance was unsuitable for me as I was in part-time employment (approx 20 hours p.w.) at the time I took out the policy and was not made aware of the specific exclusions relating to unemployment cover.
  •It was not explained to me that the policy premium would be paid upfront as a single premium and would be added to my debt and attract interest
  The advisor should have told me the full cost of the insurance so that I could tell it was affordable.
  •I was never asked if i had any other insurance which could cover the loan •
  I wasn't told that I could buy PPI from another company.
  My husband at the time was unemployed which i informed to the advisor.
  please advise
• If I'm honest it looks a little bit template. As though you've copy & pasted it from an Internet standard letter.
  What exclusions relating to unemployment cover are you referring to? Generally PPI will cover anyone who works over 16 hours per week. Your husband's employment, or lack thereof, is also of no relevance. As regards points 1, 3 and 4, this would all have been in your paperwork. There is no requirement for them to ask if you have existing cover or tell you that you can go elsewhere. If you went to Tesco to buy a TV you wouldn't expect them to ask you if you already had one or tell you that you can go to Asda. Plus you've already said you had no other cover.
  The approach FOS take is to look at whether there is any reason you wouldn't have felt the policy suitable if you had been fully informed. You've already said you had no other suitable cover so you need to consider whether any of the exclusions in the policy would have significantly limited your ability to claim on it. My best advice would be to ask for a copy of the policy summary so you can find out for definite if you don't already have one.
• thanks Insider101, well to be honest, I was following a template letter, I was unsure about this whole process. I do have a copy of my original application form which shows I ticked the box for ppi. Other than that, I am confused at this whole process. Is this worth pursuing or just give up now???
• Take it to FOS. They have replied to your template letter with their template letter.
  You paid a single premium up front and therefore incurred additional interest on the loan, this cost should have been clearly disclosed at the point of sale. As you were only employed part time then you should also check the terms and conditions again to see if it would have applied to your circumstances and actually paid out.
  Citi bank have accepted that there were flaws in the sales process but have not told you what they were so I wouldn't give up. At least if you go to FOS they will conduct an independent assessment as opposed to issuing a template letter