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 a customer’s 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 believe we should have. 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 their 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 than we believe we should have.

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

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. 

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

As of 1 January 2019 we made a change so that the ‘PAYE’ and ‘Self/State’ rates would be the same regardless of a policyholder’s employment type. We have updated the employment type for all of our active policies to ensure that if the rates differ in the future, customers will be charged the correct rate.

How have you calculated the refund?

We have calculated the refund as follows:

Total refund equals the amount of premiums overcharged and includes interest payment for not having access to the money overpaid. 

  • We have included a cheque lodgement fee of €1 to cover any cost of lodging the refund cheque, where a cheque has been issued.
  • 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.

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. 

What are PPI arrears?

PPI arrears refers to any arrears amount on the mortgage account which is directly related to PPI. In some cases we have used your refund to reduce or clear this amount.

Where applicable, we sent any remaining refund by cheque.

My mortgage is nearly finished its term – what happens to my PPI?

Once your mortgage has reached its end date, your policy will end and no further PPI premium will be charged.

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.