is Lifecare 24 classed as PPI ?

waveydave
waveydave Posts: 196 Forumite
in Reclaim PPI & other insurance
HI,

Just a quick question really - I hve a loan with Welcome, it has 2 lots of Lifecare 24 Migrated charges on it for £180 each - making £360. It has been added into the loan at a cost of £6.59 per month over a 180 month duration making a total payment of £1186.20 ( possibly plus any monthly interest ? ) and to top it off from what i can see from the paperwork it was only valid for the first five years of the loan.

Is this classed as a PPI charge and can it be claimed back ?

Thanks

Comments

  • jay-1
    jay-1 Posts: 484 Forumite
    First Anniversary
    I googled welcome finance lifecare 24 and it is indeed ppi covering death and payments if you are unable to work.Someone will be along soon who can advise if you feel this was mis sold (only just learning about this myself)
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    If the premium is being added as a monthly payment then it is not front loaded. Front loaded is when they add it in one go at the start and charge interest on it. Had they all been set up monthly then we wouldnt have this issue now.
    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.
  • waveydave
    waveydave Posts: 196 Forumite
    dunstonh wrote: »
    If the premium is being added as a monthly payment then it is not front loaded. Front loaded is when they add it in one go at the start and charge interest on it. Had they all been set up monthly then we wouldnt have this issue now.

    So are you inferring from that it cant be claimed back or it cant be claimed as missold ?

    the thing i cant figure out with it is the paperwork states that the figure including ipt was £180 each - and then interest of £413.12 was added to each figure making a total of £1186.24 divided by 180 months makes £6.59 added onto the loan per month. Surely though any change in the loan ( this is welcome we are talkng about so plenty of £25 charges for visits not made and £10's for phone calls not made) will add more interest onto that £6.59 - in essence interest added on interest ?

    I may be well out in what i think though so no probs about being put right.

    Finally - how legitimate is it to
    A - have a policy that only covers you for the first third of the length of the loan despite paying for it for the full term
    B - having to have the insurance in order to have the loan

    Thanks for teh reples so far
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    So are you inferring from that it cant be claimed back or it cant be claimed as missold ?

    If it isnt front loaded then you cannot use front loading as a complaint reason. The fact that front loading is one of the major complaint reasons may be an issue for you.

    However, it is not clear that yours wasnt front loaded. I get the impression it is front loaded.
    Finally - how legitimate is it to
    A - have a policy that only covers you for the first third of the length of the loan despite paying for it for the full term
    B - having to have the insurance in order to have the loan
    A - not an issue. It would be desirable to have longer cover but the cost would be too great and 1-2 years is the typical norm.
    B - That is an allegation that you will almost certainly be unable to prove. You can bet your life the firms documentation wont support that allegation. It may have happened (often did) but without evidence, there is no way to tell if it did happen or not.
    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.
  • waveydave
    waveydave Posts: 196 Forumite
    Sorry for the delay in replying but thanks for the info Dunstonh.

    I would imagine / believe it was front loaded but not really sure of what my next steps are ?
  • holkins
    holkins Posts: 11 Forumite
    Was there any answer or success that life are 24 was a type of PPI?
  • dunstonh
    dunstonh Posts: 116,358 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Last Activity: 04-12-2012 9:50 PM
    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.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    First Anniversary Name Dropper Photogenic First Post
    holkins wrote: »
    Was there any answer or success that life 24 was a type of PPI?
    This question was answered immediately in 2012 (at post #2 of this thread).

    I doubt "waveydave" will be back to update the thread though..
  • holkins
    holkins Posts: 11 Forumite
    I ask at welcome are claiming these policies were not PPI, and as such I cannot make a miss selling claim.

    When I google I can’t find anything that sets out what these policies are, and I’m not getting very far with welcome in finding out.

    If other have been successful in claiming misspelling of these policies as PPI it would help me greatly
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