PPI -v- Income Replacement
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grund1g
Posts: 32 Forumite
Around 6 years ago I bought a car on HP. I shopped around for Payment Protection and found a company that could help. I bought a payment protection policy; they set up a D/D for the bank. The premiums were taken from our joint account and I thought that the payments would automatically stop when the car loan was paid off.
I never had any need to look at our joint account until recently when my wife went into hospital. I was surprised to see that the payments were still being taken. I stopped the direct debit and the company contacted me saying if I didn’t re instate the direct debit cover would cease.
When I checked I discovered that it was not a payment protection plan, it was income protection insurance that just carried on until I retired.
After I had set up the payment protection plan the company wrote to me a few months later saying the insurance company they set up the policy with was getting out of the payment protection market (stating quite clearly it was a Payment Protection Plan) but they had found another insurance company and transferred the plan to them.
Whilst I understand if I had been off sick or out of work the insurance would have paid out, I thought I had bought a payment protection plan, I didn’t ask for income replacement insurance, I didn’t need it and at no time was I told or even led to believe that was what I had bought.
This insurance I believe was miss-sold or am I wrong? or is it just another name for PPI, in which case it should have ceased when the loan was paid off.
I never had any need to look at our joint account until recently when my wife went into hospital. I was surprised to see that the payments were still being taken. I stopped the direct debit and the company contacted me saying if I didn’t re instate the direct debit cover would cease.
When I checked I discovered that it was not a payment protection plan, it was income protection insurance that just carried on until I retired.
After I had set up the payment protection plan the company wrote to me a few months later saying the insurance company they set up the policy with was getting out of the payment protection market (stating quite clearly it was a Payment Protection Plan) but they had found another insurance company and transferred the plan to them.
Whilst I understand if I had been off sick or out of work the insurance would have paid out, I thought I had bought a payment protection plan, I didn’t ask for income replacement insurance, I didn’t need it and at no time was I told or even led to believe that was what I had bought.
This insurance I believe was miss-sold or am I wrong? or is it just another name for PPI, in which case it should have ceased when the loan was paid off.
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Comments
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I shopped around for Payment Protection and found a company that could help. I bought a payment protection policy; they set up a D/D for the bank. The premiums were taken from our joint account and I thought that the payments would automatically stop when the car loan was paid off.
What gave you that idea?
All standalone regular premium PPI is open ended.When I checked I discovered that it was not a payment protection plan, it was income protection insurance that just carried on until I retired.
Excellent. A much better quality product.I didn’t ask for income replacement insurance, I didn’t need it and at no time was I told or even led to believe that was what I had bought.
What does the statement of demands and needs say? Although you probably didnt read it. Perhaps you should as that is the key document here.This insurance I believe was miss-sold or am I wrong? or is it just another name for PPI, in which case it should have ceased when the loan was paid off.
You need to be clearer with what you think they did wrong. To me, it seems you are not happy that you failed to cancel it when you felt you no longer needed it (although chances are you still had a financial need for it). These are all open ended (or at least to retirement). Unless you have any evidence that shows it was only short term then that is not going to wash. Long term Income replacement is not PPI. So, you cant use PPI reasons.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It was your own responsibility to check what the insurance covered (and for how long).
I never had any need to look at our joint account until recently when my wife went into hospital. I was surprised to see that the payments were still being taken. I stopped the direct debit and the company contacted me saying if I didn’t re instate the direct debit cover would cease.
When I checked I discovered that it was not a payment protection plan, it was income protection insurance that just carried on until I retired.
From what you say, there is nothing to suggest the insurance was in any way unsuitable and if you didn't want it you could have cancelled it at any time.
You cannot say it was mis-sold because you later failed to check your statements and continued paying it long after you needed/wanted to.
Incidentally, Income Replacement Insurance is not PPI. PPI is a short term insurance, the former lasts until you retire and is therefore a far superior insurance policy. This would have been explained to you at the point of sale and in the terms and conditions you signed your agreement to.There would also be a "Demands and Needs"document which Duncan alludes to above.
It's unwise to apply PPI complaint reasons to non PPI products.0
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