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Egg is yet another financial firm to have been fined by the City watchdog for the way it has handled PPI claims.
In December 2008 it was fined £721,000 for ‘serious failings’ in its telephone credit card sales between January 2005 and December 2007, including adding PPI to a credit card agreement without the customer’s knowledge or consent.
Even when the customer did not consent, PPI was applied to their credit card anyway. In a statement the FSA said: “When Egg customers said they did not want PPI on their credit cards, the firm directed its sales staff to use techniques to persuade the customer to take the insurance – called ‘objection handling’.
“These techniques included over-emphasising the positive features of the PPI, or telling the customer they could take the PPI for a free period and cancel it later if they did not want it. In some cases, even when the customer did not consent, PPI was applied to their credit card anyway.”
Egg is a former UK internet banking company which offered loans, mortgages and credit cards. They have now been renamed Canada Square Operations. A small portion of their credit card accounts were sold to Barclaycard when the name was changed.
How was PPI mis-sold?
If you took out a loan, credit card or mortgage with Egg, it is likely you were mis-sold PPI if you experienced any of the following:
- you were pressured into buying PPI or told you must have PPI
- you were promised a cheaper rate if you bought PPI
- you were already covered by another policy
- you received full sick pay from your employer
- you were told your loan or credit application was more likely to be accepted if you bought PPI
- PPI was added without telling you
- you were advised to buy PPI that did not suit your circumstances or needs
- you were self-employed, unemployed or retired but advised to buy PPI
- you had a pre-existing medical condition at the time of buying PPI, which may have affected your ability to make an insurance claim
- you were advised that a pre-existing medical condition was included in your PPI policy (or advised that it wasn’t included)
- it was not made clear that you would pay interest on the PPI if it was added to your loan
- it was not made clear that the PPI would end before the loan or credit was repaid
- the amount of commission paid on the sale was not revealed at the time