110,000 AIB customers may be due insurance refund

Discussion in 'Payment Protection Insurance claims' started by Brendan Burgess, Aug 19, 2015.

  1. Brendan Burgess

    Brendan Burgess Founder

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    From RTE.ie


    110,000 AIB customers may be due insurance refund
    08.24 Around 110,000 AIB customers are to receive letters informing them they may be entitled to compensation as a result of a review of their card protection insurance policies.
     
  2. Gerry Canning

    Gerry Canning Frequent Poster

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    All customers will be due refund because this Card Protection was sold by AIB as an add-on that was proven in UK to be totally unnecessary.A classic case of miss-selling .

    AIB writing to customers is @ best cynical.
    They know that quite a few customers will not respond so they save circa e100 per customer.
    They should in honesty simply refund all monies paid on this product ie full recompense.

    I heard Mr Sheridan of Central Bank waffling on Radio about how Central Bank checks/crosschecks etc.ie {wonderful} people?
    Central Bank and their Financial Ombudsman friends knew of this issue years ago .

    I suppose next we might even see movement on the 2,500,000,000 ,yes 2.5 billion con by lenders on Payment Protection Insurance.
    I doubt it because of the sums involved.
    This PPI dwarfs any ptsb tracker by a multiple of 25.
     
  3. Brendan Burgess

    Brendan Burgess Founder

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    Press release by Central Bank. AIB doesn't appear to have issued a press release.

    AIB has a section of its website explaining it: http://personal.aib.ie/help-and-guidance/card-protection-review

    Central Bank statement regarding Card Protection Redress Scheme – Cardif Pinnacle


    Information release 19 August 2015
    The Central Bank confirms that it has been engaging with AIB regarding the establishment of a voluntary redress scheme for consumers who purchased card protection insurance from Pinnacle Insurance plc (Cardif Pinnacle) through AIB.

    The scheme is being put in place because an element of the card protection product (cover for unauthorised or fraudulent use) was not required, as customers were already covered for amounts greater than €75 under the terms and conditions of their credit card.

    Impacted customers will be contacted shortly by AIB, provided with an explanation of the issue and details of how to claim.

    The Central Bank’s Director of Consumer Protection, Bernard Sheridan, said: “We require all firms to make full disclosure to consumers of all relevant material information when selling any financial product. It is important that consumers can have confidence that firms are acting in their best interests and that they are not sold any cover which they do not need. Where this has occurred it is our priority to ensure that consumers receive full redress. We encourage all affected consumers to make a claim.”

    If consumers do not receive a letter from AIB by 30 September, but think they have been affected, they should contact the firm directly. Further details of how to claim under AIB’s voluntary redress scheme, including contact details, can be found on its website: www.aib.ie/cardprotectionreview

    Notes for editors

    The Cardif Pinnacle card protection insurance product was offered to customers as an optional insurance within the credit card application process. The product insured customers for, among other things, liability to a card issuer as a direct result of unauthorised or fraudulent card transactions. This element of the insurance cover was for up to €1,500 prior to reporting card loss or theft and for up to €75,000 after reporting the loss. However, customers were already indemnified by their bank under their card terms and conditions.

    It is therefore evident that the potential liability may have been overstated in advertising and/or printed materials and that this may have influenced customers to purchase this product.

    Cardif Pinnacle card protection insurance also provided limited cover for other losses suffered. This mainly relates to certain losses suffered while travelling outside the policyholder’s permanent country of residence e.g. for up to €200 personal money lost or stolen, up to €100 to pay to obtain temporary travel documentation, up to €100 to locate emergency medical assistance, an emergency cash advance to pay for replacement travel tickets, hotel accommodation or transport charges necessary to complete a journey etc.

    This work is part of the Central Bank’s ongoing programme of supervisory engagement with firms to ensure that firms are delivering the right outcomes for consumers. This voluntary redress scheme follows on from the voluntary redress scheme, put in place at the request of the Central Bank of Ireland, for consumers who purchased card protection insurance provided by Homecare Insurance Ltd and purchased through Bank of Ireland, MBNA and Ulster Bank. In respect of that scheme, the estimated redress, based on claims to date, is just over €9 million.


    Press Area

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  4. Gerry Canning

    Gerry Canning Frequent Poster

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    If we check with customers we will find that as in the Uk the CCP was not truly optional, customers were told they must take it in many cases.

    For Mr Sheridan of Central Bank to pretend Ventral Bank acts in Consumers interests is to put it politely (disingenuous).
    This issue was well highlighted years ago.
    Also to just not tell AIB to pay out on an obvious miss-sell is well ?? !!

    Central Bank consumer protection was a joke , indeed may well still be.
     
  5. trojan

    trojan Frequent Poster

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    How did all the major banks both here and in UKwere guilty of this offence?
     
  6. bungaro

    bungaro Frequent Poster

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    got my letter from aib in the post today. just need to sign a form and send it back. just wondering if i should hold off, it says i will receive €16 per year and some compensation (didn't say how much). i got screwed when ulster bank had their issues and they tried to pull a fast one when i called up to sort it out and i had to escalate the problem to get it properly resolved.
     
  7. Gerry Canning

    Gerry Canning Frequent Poster

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    bungaro,

    Suggest sign it and get your few bob.

    The amounts involved are small ie what you paid each year.
    It is up to the Central Bank to fine their (friends!)
     
    bungaro and PatrickJ like this.