MBNA – Claiming a Refund For PPI
MBNA are a trusted creditor. Many customers chose to take out credit cards and loans with this bank, primarily because MBNA were the World’s largest credit card issuer, a very trusted lender who offered attractive deals and low interest rates. During the last decade or so the UK financial sector has come under intense scrutiny. A good proportion of this was because of what turned out to be the biggest and costliest financial scandal to ever hit the UK, of course we’re talking Payment Protection Insurance.
Banks have so far paid out £24bn in compensation. The five biggest banks in the UK have set aside a further £32 billion to deal with the compensation bill.
Mis-selling PPI has meant that MBNA has been forced to pay back millions of pounds to customers who were mis-sold faulty policies and we’re here to help any MBNA customers claim refunds for money that is rightfully theirs.
5 biggest banks in the UK have set aside a further £32.6 billion to deal with the total compensation bill.
What is Payment Protection Insurance?
PPI is a form of insurance that covers repayments on finance products like mortgages, loans and credit cards if the holder is for any reason unable to meet the monthly repayments. This could be down to a few different reasons, these include:
- Involuntary Redundancy
- Long-term Sickness
On paper the policy sounds quite useful, however MBNA and the other big lenders have tarnished Payment Protection Insurance and what it stood for by mis-selling the policies.
Banks and lenders were deliberate in the way that they wrapped PPI up in a cloud of mystery, this is because making things more complicated and deliberately confusing people made it easier to mis-sell policies and hide the evidence.
How Did MBNA Mis-Sell?
In a lot of cases, PPI was added onto a policy without the customer’s knowledge, hidden away within the monthly repayments. Sales Advisors would often use dishonest sales tactics when it came to attaching policies. This was used as a tactic to push customers to buy a policy.
In other cases, some sales staff, at the request of the banks, were told to use whatever techniques they could in-order to sell PPI to consumers. The policies sold in a lot of cases wouldn’t cover the individual and would leave them unable to claim on a policy even if they needed to. Sales Advisors also failed to clarify to the customer that a PPI policy was optional and they were free to opt-out or even purchase the insurance elsewhere if they wanted to.
You don’t need your account details to claim your refund!
We only need your name, date of birth and address
You may not have all the required paper work or account details available to you, this is the case for many people, but all is not lost. PPI.co.uk have been helping customers to get refunds for what is rightfully theirs for years. Because of the name we have built in the industry we have brokered a deal with all the major banks and lenders, meaning that we’re required to only provide a name, date of birth and address. Once we submit this information to the banks they’re able to access their databases and determine if any PPI was added onto any finance you may have taken out.
This agreement is only available to select PPI companies and reinforces our credibility within the industry.
Alternatively, you can make your claim to MBNA directly however you will be required to provide more detailed information about your borrowing, according to MBNA the following information is a necessity when processing the claim:
- Any PPI account policy numbers.
- Details of the key dates of the policy.
- Information about how the policy was sold.
- Employment status at the time the policy was sold.
- Details of any savings or other insurances you had when you took out the policy.
If you have tried to claim before and got nowhere you could still be entitled to a refund.
When the mis-selling of PPI policies hit the news it became a national banking scandal, MBNA customers were sent letters informing them that they may have been mis-sold their policy and could be entitled to compensation from the bank, who were responsible for pushing these overpriced and often useless products.
People could then contact MBNA directly and send details of their circumstances at the time of sale, and any evidence (paperwork) to back up the information they provided.
MBNA provided customers with the PPI forms to fill in to ensure that making a claim was as straightforward as possible for the customer. However, it came to light that banks were not always processing the claims in a thorough fashion and a high percentage of claims were being wrongly rejected. In 2015 the Financial Conduct Authority (FCA) allowed customers who had their initial complaints rejected the right to appeal to the Financial Ombudsman Service. This meant that thousands of people who initially had their claims rejected were allowed a second chance in claiming back mis-sold PPI.
If you have previously tried to claim and were unsuccessful we are happy to re-submit your claim. You could still be rewarded a refund.
Time could be running out to make a claim for your refund
The industries governing body, the FCA are imposing a 'Claim by' deadline of 29th August 2019, meaning etc.
PPI Claims Deadline
Mis-sold PPI Compensation claims MUST be made by 29th August 2019 under proposals announced by the Financial Conduct Authority (FCA). It is important to understand that in some cases, you may have less time than this.
How Was PPI Uncovered?
MBNA, like most financial institutions, have had their fair share of financial scandals worldwide which have included controversial interest rates and charges for 0% credit card borrowers, however PPI has always been at the top of the list, both in controversy and cost.
The issue over PPI was first flagged as an issue in 1998, by the well-regarded consumer magazine Which? – who questioned the credibility of the product due to the expenditure and the way it was being sold to people.
Despite this concern PPI mis-selling continued unabated right through the rest of that decade and well into the next. It took until 2005 for the Financial Services Authority to step in and make some real changes, releasing a report about the way banks had gone about selling policies.
After thorough investigation that took almost a year, the smaller finance companies who wrongly peddled PPI to customers were beginning to feel the sting of big fines and reprimands from the governing bodies. In 2007, the big corporate banks were also coming under pressure; thinking themselves untouchable, they continued their activities unabated. They soon found that this was never a realistic plan and the big banks were also being fined millions of pounds. It was estimated in 2008 that more than 2 million people in the UK had been shelling out for PPI policies that they had zero chance of being able to claim on. They were sold the insurance on the basis that it was the only way they could be approved for their credit.
UK mis-sold PPI scandal statistics
£10 BillionIn payouts alone in the UK.
By 2008, 20 million PPI policies existed in the UK that’s nearly 1 in 3 of the 2008 UK population
The Financial Ombudsman Service (FOS) finally got involved in the scandal in summer 2008, and ordered the FSA to review how firms were handling their PPI complaints.
The Competition Commission recommended, and eventually ruled in 2010 that PPI should not be sold at the point of sale for credit cards, loans, and other finances. This came alongside much objection from the banks, who protested that the new measures imposed on their standards.
MBNA from Then to Now
1982 – Maryland Bank, N.A. is founded
1989 – Now dubbed MBNA America Bank
1991 – MBNA Corp separates from Maryland National and becomes an independent company
1993 – Maryland National was obtained by NationsBank
1995 – MBNA moves its headquarters to Rodney Square in Wilmington, Delaware. This move was credited as an investment into Wilmington’s real estate market.
2005 – MBNA is acquired by Bank of America for an undisclosed amount
2006 – MBNA is renamed to FIA Card Services, however the name MBNA is still retained in Canada and Europe
2016 – Rivalling Apple pay; Samsung pay is offered to MBNA customers in the UK
It’s quite easy to procrastinate and put things off until tomorrow but more often than not, tomorrow never comes.
So, if you believe that you have been mis-sold PPI,
it’s important to act now before it’s too late.