Payment Protection Insurance (PPI) 

Three Missed Premiums - Questions & Answers (Q&A)
 

We recently wrote to some customers about the Payment Protection Insurance (PPI) policy on their mortgage account and an issue that we have found.

The PPI terms and conditions state that a customer’s PPI policy will be cancelled if they miss three premiums in a row. Some customers did not have their policy cancelled after they missed three premiums in a row as they may have expected. This is because we continued to pay the insurer for them. We have now decided to refund these customers the PPI premiums we charged after the third missed premium, up until their next relevant annual loan statement.

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

Why have I received this letter?

Your PPI cover was not cancelled when you missed three premiums in a row, as outlined in the PPI terms and conditions. We continued to pay the premiums to the insurer for you, regardless of whether you paid your combined payment in part or in full. This meant that the benefits of your PPI policy remained available to you.

However we accept that it may not have been clear to you until your next annual loan statement, which detailed these charges, that we continued to charge you for your PPI premiums and that your policy remained in place.

What is a combined payment?

We collect one combined payment from you every month which includes your mortgage payment and any insurance premiums you pay with it.

Where the combined payment is not paid in full, an arrears amount is owed on the mortgage account, which can include insurance premiums. 

What is considered a missed premium?

A missed premium is where your full combined payment is not paid in a given month.

What is considered my next annual loan statement?

You will receive your next Annual Loan Statement before the end of March in the following year. For example, the 2020 Annual Loan Statement was sent to you before the end of March 2021. This statement details all transactions on your mortgage account including insurance premiums paid during 2020.

I haven’t received my Annual Loan Statement for a specific year. Where can I get this?

If you want a copy of your Annual Loan Statement from a specific year, you can visit your local EBS branch or call 0818 654 322.

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, 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.

When did you find out about this issue?

We identified this issue in August 2021. Since then we have identified all affected accounts.

How are you correcting this?

We are writing to each affected customer and refunding the PPI premiums we charged after the third missed premium in a row, up until the next relevant annual loan statement. This refund includes an interest payment. We are also writing to any other customers on the account to let them know about this issue, as the PPI premiums were collected with their mortgage repayment.

From March 2022, if a customer’s combined monthly payment is missed in full for three months in a row, their PPI policy will be cancelled. Before your policy is cancelled, we will write to you to tell you what you need to do if you want to keep your PPI cover.

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

We have updated the internal process which resulted in this issue.

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

Yes, we have informed the CBI in line with our regulatory reporting obligations. 

Has this affected my credit record?

If your record with the Irish Credit Bureau (ICB) or the Central Bank of Ireland’s Central Credit Register (CCR) was affected, we have included information about this in your letter.

I have an active PPI policy. Do I need to do anything now?

No, however if you think the PPI policy no longer meets your needs either now or in the future, you can cancel it at any time by writing to us at

EBS Insurance Operations,
1 Adelaide Road,
Dublin 2

A cancellation instruction must be signed by all of the mortgage account holders. You may not be able to take out another PPI policy, as Mortgage PPI is no longer sold in the Republic of Ireland.

If I cancel my policy/my policy is no longer active, what alternative protection can I get?

If you are concerned about no longer having this protection, you may benefit from a review of your protection needs with either an independent financial advisor, or our EBS Team. If you would like more information, please contact us or visit www.ebs.ie/insurance/financial-review . 

You may not be able to take out another PPI policy, as Mortgage PPI is no longer sold in the Republic of Ireland. You can however take out other protection policies, such as income protection or critical illness cover, which may cover your financial outgoings if you were unable to work.  

What does my refund include?

The total refund equals the premiums we charged after your third missed premium, up until your next annual loan statement which details these charges. As you did not have access to this money, we have included an interest payment on your refund.

  • We have included a cheque lodgement fee of €1 to cover any cost of lodging the refund cheque.
  • For customers who were in arrears, we have included a refund for the additional interest charged on the PPI arrears amount, as this was added to the overall mortgage balance.

Why does my letter not include a cheque?

For customers who currently have arrears on their account, we have used your refund amount to reduce the arrears on your account. This is detailed in your letter.

How have you calculated my refund?

The refund has been calculated as follows:

 Refund Type  Amount 

PPI Premium refund

€500

+ Interest Payment

€50

+PPI Arrears Interest*

€100

-Previously Refunded Premiums      

(€250)

Total Refund

€400


If you have an open account, we have used the PPI arrears interest refund to reduce your balance. If you currently have arrears on your account, we have also used your total refund to reduce your arrears balance.*You may not have had arrears on your account. If this forms part of your refund, we have outlined it in your letter.

If you have a closed account, we have refunded you by cheque.

Note: These amounts are for illustrative purposes only.

What are PPI arrears?

PPI arrears refers to any arrears amount on the mortgage account which is directly related to unpaid PPI premiums.

Who can I speak to about arrears on my mortgage account?

If you are worried about your mortgage repayments, the first step is to talk to us. Together we can work through what is happening and look at possible ways to help you. You can call our dedicated Arrears Support Unit on 0818 330 044. Alternatively, you can visit our website at www.ebs.ie/worried-about-repayments

If I had a successful claim, do I need to do anything?

No, you don’t need to do anything.

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

No, you don’t need to do anything. 

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

If you have a question about the information included in our letter or want to complain please ring us on 0818 664 014 or you can write to us at:

EBS Insurance
Block H,
Central Park,
Leopardstown,   
Dublin
D18 CK74

If you are not satisfied with our final response to your complaint, 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.

If you have a specific question about your mortgage, you can call our Mortgage Direct Team on 0818 654 322.