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ombudsman news

issue 106

November/December 2012

Q&As

I'm a solicitor and my client has been paying for PPI on his personal loan for four years. We strongly feel that the policy was mis-sold. My client already had payment protection cover through his employer - and he has no recollection of agreeing to additional PPI. The bank has rejected the complaint and has produced a copy of the loan agreement. In the small print there is a box ticked supposedly showing that my client consented to the sale of PPI. Is that "case closed"?

Not necessarily. When we look at complaints we weigh up the evidence from both parties. The business has produced a document which, it says, proves that your client agreed to the sale of PPI - and we would take this into account. But we also listen to the other side of the story.

For example, if you showed us evidence of the cover that your client already had through his employer, this could support his argument that he wouldn't have taken out PPI because he had no need for it. We would also ask the business for any other relevant information it might have - for example, notes that were made at the time the policy was sold.

Now that he has had the bank's response, if your client does want to refer the complaint to us, you can download a complaint form from our website or call us on 0300 123 9123.

You might also want to have a look at the online technical resource on our website, which contains a lot more information about how we approach PPI cases.

I work for the Citizen's Advice service and I am trying to help a customer who sent some money to the wrong person by mistake. She set up a standing order but got the last digit of the account number wrong. Her bank has said that it can't help. And the bank she sent the money to says it can't talk to her because she isn't a customer and because of data protection issues. Is there anything else she can do?

If the banks had both acted quickly as soon as the customer told them about the mistake, then it might be that neither business has done anything wrong - even if the money has gone. But they should both be talking to your customer and giving her as much information as they can to help her find out what has happened.

Standing orders are covered by the Payment Services Regulations - a set of rules that apply to almost every bank. These came into force on 1 November 2009. The regulations allow both the sender and the receiver of money in a transaction to bring a complaint about either the sending or receiving bank. So your customer could complain to both banks that were involved.

The bank that received the money doesn't need to disclose any protected information about its customer or the receiving account, but it should still do everything it reasonably can to help.

If your customer can't sort this out with the banks, she might want to consider bringing a complaint against them. You can find more information about how we look at cases involving payments made to the wrong person in our online technical resource on our website.