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THE CENTRAL BANK has named six institutions which it is investigating for mis-selling payment protection insurance (PPI) to customers who were ineligible to make claims under the policy.
Bank of Ireland, Allied Irish Banks, EBS, Permanent TSB, Ulster Bank and GE Money have all been ordered to launch independent reviews of PPI sales to establish the extent of the problem – and to pay restitution to customers who were missold the policy.
A seventh institution asked not to be named by the regulator, according to the Irish Times.
PPI pays a policy holder’s loan or credit card repayment if they become ill or unemployed. However, PPI was sold to thousands of people who were ineligible and who would be unable to claim under the policy if they had difficulty regarding employment or residency status.
Customers of the firms undertaking reviews have been advised that they do not need to do anything at this point, and will be contacted directly by their PPI seller in relation to the review process, RTÉ reports.
The Central Bank has warned the public about management companies that make claims on behalf of customers – saying that such firms can charge significant fees.
The banking regulator is continuing to investigate PPI sales by other lending institutions.
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The Journal.ie has a sense of humour. While looking at this story a banner ad for bank of Ireland appears on the bottom of my screen. I LOL’d :)
Ammmmm, why was one bank allowed to withhold its name?
So much for the openness we were promised.
There is no excuse for this secrecy but application of a baseball bat or similar to the Regulator should work wonders! Where are Eirigí when you need them?!
What’s the bets it’s what was Anglo….
No I would say it was national Irish as its a Danish bank Irish regulator has no authority
Don’t think Anglo was heavily involved in residential mortgages, so probably not….
@mattoid this does not relate to mortgages, but rather to personal loans and credit cards, it effects manly
Self employed
Thoes employed as contractors
People who were not in full time employment for 6 months before they took out the loan.
People who lost their job within 30 days of taking out loan
The point I was making is that Anglo was not a ‘normal’ retail bank, and the vast majority of its loans were commercial in nature, and as such PPI would not be involved.
was looking at this last week, found some info on http://www.moneyguideireland.com/category/ppi as to reasons you can claim. Personally I would not be holding my breath for anyone to contact me, and will be going through all my historic credit agreements etc this week. If you don’t ask you don’t get.
MBNA??
Yep
Jennifer, why not expand on the type of circumstances that would prevent a policyholder from claiming?
See above for a few examples.
Hi Rory, there are multiple problems with the way that PPI was sold to some customers. First of all, some people were not made aware the policy was optional – so ‘took out’ PPI unknowingly or unwittingly. Regarding eligibility, customers had to be in full time employment at the time the policy was taken out, and can be refused payments if they had a suspicion at the time that they *may* become unemployed. Similarly, if they had certain medical conditions or if they were self employed they would not be eligible for PPI. These are just some of the reasons for the current investigation.
i was ‘mis- sold’ p.p.i. by bank of ireland on a loan, when i tried to claim i was told by the insurance company involved that i did not have a v..a.t registration number so there fore was not entitled to claim, the girl in the bank branch argued for over 20 minutes with the insurance people as to why i would need a v.a..t number as i was not a business customer, in the end i asked for the phone, i then told the insurance that i was going straight from the bank to the financial regulators office to report them for fraud, with in 2 minutes they agreed to pay back all the fees to my account the same day. as usual with the banking/insurance sector the general public is being ripped off, and as most of the big banks are linked or own these insurance companies it’s not surprising that they do little or nothing to solve the problems.
I got a car loan, over 10 years ago with AIB. First of all, they made my mother go guarantor, and then they made me take out PPI. I told them, I did not want PPI, but they insisted I get it, or otherwise they would not give me the loan. I wonder do I have a case to make, as I’ve been bitter over it since?
Yes, but hard to prove they made you take it out, unless you have it in writing,
I now secretly film all talks I have with my bank, accountant, solicitor and any other professional I deal with, worked great when a staff member in my insurance company threaten to put me on a an insurance black list when I was making a complaint over a very small insurance claim that they were refusing to pay and I wouldn’t let go. Sent a copy of video and letter to head of HR, and as you can guess I got my claim paid along with almost free insurance, once I don’t publish video
Would of lived to publish video, but needed the money too badly. But at least i sent the video to ombudsman, so don’t feel too bad, but told it may take a year for them to review.
Would a full-time student qualify as being mis-sold PPI on their credit card?
Yes, unless you were also in full time employment
Thanks, no employment and no explanation as to why I had to buy it!
Mis-sold? Mis-selling? To ‘mis-sell’ is not a verb. I think the correct verb is ‘defraud’ or the less cynical could use the phrase ‘sold by mistake’ . Using ‘mis’ as a prefix in this case is a cunning verbal trick to disguise the truth. You are a journalist, you should know these things.
Fair enough. I guess its one of those new horrible made-up terms like ‘gifted’ and ‘mis-spoke’. Apologies.
No worries, Paul. It’s not the prettiest word but it is part of the financial lexicon – which is unfortunate for a number of reasons.
Yeah, I was one of them. I was forced to take PPI on a loan. They added 800 euro on top of the loan as PPI and of course, there was additional interest owed on the 800.
I was told I had to take it or I wouldnt get the loan approved. I was on fixed term 2 year contract of employment in a local council, so they said that since I wasnt permanent, I had to take it out.
have your say