Payment Protection Insurance (PPI) 

 Questions & Answers (Q&A)
 

We recently wrote to certain customers about their mortgage account and a mistake we made on the associated PPI policy. At the time the PPI policy was taken out, there were different PPI premium rates that could be chosen from based on employment type. The mistake occurred when we charged a higher rate when we now believe we should have charged a lower rate. This means we charged a higher premium for the PPI cover than we should have and we are now refunding the premiums we overcharged, including an interest payment for not having access to that money.

If you got this letter the following Q&A may help to answer any questions you might have.

 

Why have I received this letter?

When you or another policy holder on your mortgage chose to take out PPI, there were different premium rates that could be chosen from based on employment type. These were described as ‘PAYE’ or ‘Self/State Employed’. Unfortunately, we charged the PAYE rate when we now believe we should have charged the Self/State Employed rate. This means we charged a higher premium for the PPI cover. 

What is PPI?

PPI is an optional insurance product that provides protection for mortgage repayments. It pays out money to help you to cover your mortgage repayments for a period if you cannot work due to accident, illness, involuntary unemployment; or accident, illness and hospitalisation if you are state or self-employed. Terms and conditions apply. The benefits payable depend on the cover selected;

  • Premier: Accident, Illness, Involuntary Unemployment/Hospitalisation benefit up to a maximum of 12 months.
  • Premier Gold 1: Accident, Illness, Involuntary Unemployment/Hospitalisation benefit up to a maximum of 12 months. Critical Illness Cover & Permanent Total Disability cover up to a maximum of 24 months.
  • Premier Gold 2: Accident, Illness, Involuntary Unemployment/Hospitalisation benefit up to a maximum of 12 months. Lump sum payment up to €175,000 for Critical Illness Cover & Permanent Total Disability.


This product is underwritten by AXA France IARD S.A., trading as AXA Partners – Credit & Lifestyle Protection

Another account holder received a refund but I did not. Why is this?

The customer who has received the refund was overcharged because we believe we set up their policy on the incorrect rate.

We wrote to you to let you know about the mistake we made which relates to your account. If you believe you should have received a refund, please ring us on 0818 664 014 between 9am and 5pm, Monday to Friday so that we can review this for you.

When did you find out about this issue?

We identified this mistake in January 2021. Since then we have identified all affected accounts.

How are you correcting this mistake?

We are writing to each affected customer and refunding the PPI premiums we overcharged by mistake. This includes an interest payment for not having access to the money overpaid. We are also writing to any other customers on the account to let them know that we made a mistake which relates to their account.

Has this affected my credit record?

No, our mistake has not affected your credit record with the Irish Credit Bureau or the Central Bank of Ireland’s Central Credit Register.

How are you making sure this mistake doesn’t happen again?

We have updated the employment type for all of our active policies to ensure that if the rates change in the future, customers will be charged the correct rate. Currently the ‘PAYE’ and ‘Self/State’ rates are the same regardless of a policyholder’s employment type.

Has the Central Bank of Ireland (CBI) been informed of this mistake?

Yes, the CBI has been informed in line with our regulatory reporting obligations. 

How have you calculated the refund?

We have calculated the refund as follows:

The total equals the difference between the PAYE rate and the Self-employed / State rate for all premiums charged and includes an interest payment for not having access to the money overpaid along with a €1 cheque lodgement fee. 

  • Where PPI premiums were previously refunded, we have not refunded them again.
  • Where the refund amount due was less than €5 we have paid a minimum refund of €5.

My PPI policy is closed. Do I need to do anything now?

No, you don’t need to do anything. If you would like to talk to us, please ring us on 0818 664 014 between 9am and 5pm, Monday to Friday.

Who can I talk to if I have a question or want to complain?

If you have a question or want to complain please ring us on 0818 664 014 or you can write to us at:

EBS Insurance Team
6th, Floor Block H,
Central Park,
Leopardstown,   
Dublin
D18 CK74

You can also complain to the Financial Services & Pensions Ombudsman (FSPO). The FSPO seeks to resolve complaints through mediation, or through investigation and adjudication. Information about the services of the FSPO is available from www.fspo.ie.