Bank Charges Q&A

Q. My PPI policy was partly mis-sold

Answer.

My bank sold me Payment Protection Insurance (PPI) when I took out a mortgage 10 years ago. I have always been self-employed and stated this when I took out the policy. I tried to make a claim a few months ago and I am now being told I am not eligible because I was self-employed, although nobody mentioned this when I took the insurance. I have now claimed for mis-sold PPI and the bank have said they will only pay half of it, as they paid me out for a sickness claim 12 months ago. What can I do?



Our banking expert says:  The Financial Ombudsman Service does not accept that a policy can be half mis-sold. This makes sense, as the bank or building society could not possibly have known if the consumer would have bought the PPI if they had known they would only get half the protection they expected. Your case is not typical, and you should let the Ombudsman settle your claim if your own efforts are not successful.

Q. Delays with PPI payout

Answer.

My husband has a terminal illness and we are struggling with debt. The payment protection insurance (PPI) was supposed to cover his payments if he became ill or if he was made redundant. The provider paid his debt of £300.00 which was the total before September last year, but an item he bought before September, for £250.00 did not show up on his statement until November and the provider is refusing to clear the amount still owing. Interest is mounting up meanwhile. What can we do?

Our credit card expert replies: Your husband purchased goods before September for £250.00, but the payment was not processed until November, which technically means the payment was not covered under the terms of the PPI policy. However, you should explain the situation to your credit card provider in writing, as in this instance you should get a sympathetic hearing.

Although your friend purchased goods in July to the tune of £350.00, the payment was not processed until September, which technically means the payment is not covered under the terms of the PPI policy. Write to your credit card provider and explain the circumstances. Your case should receive a sympathetic hearing.

Q. My account has been raided. What can I do?

Answer.

Just over 18 months ago I took a personal loan with my bank for £8,000, which was to be paid back over 4 years.  I have since lost my job and after suffering huge financial problems, agreed with the bank to make reduced loan payments. I then discovered the bank has taken £1,000 out of my current account to cover the arrears, and although they replaced the money when I complained, I am terrified they will do it again. What can I do to prevent this happening?

John Melton, Newcastle

Our money expert replies: Check your documents from the bank which explain the monthly amounts they will now take from your bank account to cover your personal loan and the arrears. If this is not clear, contact the bank and tell them you need written confirmation of this agreement. Although your bank made a mistake by taking the money out of your current account, you should write a strong letter of complaint as this caused you worry and anxiety.

Q. Are currency conversion rates fair?

Answer.

I booked a holiday package in Goa using my Mastercard. I worked out the rate with an online currency converter and I should have paid £490.00, when converted from the local currency. I was astounded when I received my statement as I had been charged £690.00, which included a £200.00 commission for the bank. Is this legal?

Matthew Smithson, Kent

Our money expert says: Banks can charge unusually high rates of commission, and it is vital if you are booking a hotel room or package to check what currency they charge in. Hotels in Goa for instance can either charge in US dollars or the local currency of the Rupee, but you need to check the rates in your own currency before booking. Contact your bank and the hotel in Goa for an explanation of the ridiculously high commission rates.

Q. How can I sort out a breach of trust with my bank?

Answer.

I have been a customer with the same bank for 20 years and up until recently I have been happy with them. They contacted me three weeks ago to say they were closing down my credit card account as I didn´t use it regularly enough. When I wrote to complain, they replied with a letter which had someone else´s banking details on, plus his name and address. I contacted them immediately and they apologised and sent me a case of wine as way of an apology. They can keep the wine, but I still expect an explanation about why this breach of data protection happened in the first place.

Monty Kewell, Southsea

 Our banking advisor replies: The person who dealt with your letters was probably a credit card specialist who mistakenly sent you someone else´s banking details. Although a human error was the cause of you being sent the wrong details, nobody working for the bank should be able to view your data (or that of the third party) unless they were specifically dealing with your query. Security has been improved recently in most high street banks to protect clients from identity theft, and it would appear that you were mistakenly sent another customer´s details. The bank, by law will also have to inform the third party of the error. As unfortunate as it is, mistakes do happen, and if you have sorted out your credit card account problem, you may be just as well to remain with your bank.