Cardholder protection plan

bluefrog_2

Hello, I have not used my credit card much in the past. I always assumed the 'Cardholder Protection Plan' on my statement was something everyone had to pay to guard against theft or loss.
However this month i used my cardmore and consequetly, the amount charged to me under this protection rocketed up. When I asked about this then they explained (Co-op bank) that this was insurance to cover if I lost my job. I explained that I was a student so didn't have a job. They told me I wasn't eligible for this insurance and it would terminate. I asked them if this could then be backdated to the time I became a student. They were not prepared to do this.
Can anyone advise how I could claim back this insurance, which I didn't request, or want from when I took out the card?

normanmark

You would need to have some form of evidence to show that you didn't sign up for it. Otherwise it's just your word against theirs.

fatpig_2

They all do it. This is how they make millions of pounds profit every year. Do you think that if anyone was given a choice anyone would sign up for this rubbish. I don't think so.

kitkat84_2

Do you know how long you have been paying for this? The FSA have been monitoring the sales of PPI for some time and it is very heavily regulated. Co-op should be able to show you something you have signed of have a recording of the sales call.

Just as a word of caution, all insurance offered by credit card companies are optional - if you notice you are paying for something, call them to check what it is.

neil9313

bluefrog wrote: »

Hello, I have not used my credit card much in the past. I always assumed the 'Cardholder Protection Plan' on my statement was something everyone had to pay to guard against theft or loss.
However this month i used my cardmore and consequetly, the amount charged to me under this protection rocketed up. When I asked about this then they explained (Co-op bank) that this was insurance to cover if I lost my job. I explained that I was a student so didn't have a job. They told me I wasn't eligible for this insurance and it would terminate. I asked them if this could then be backdated to the time I became a student. They were not prepared to do this.
Can anyone advise how I could claim back this insurance, which I didn't request, or want from when I took out the card?

sorry. you must have ticked the box! :rolleyes:

annetta123

I have just noticed this thread, and wanted to add something here if I may, and hopefully get a response from some of you.

I have a balance owing on my Co-Op Credit Card of £2,736. I have cardholder protection this month of £20.83. Last month it was more or less the same amount. It has been many months since I used this card, or wanted to use it. I am also thinking of reducing the balance owing by quite a substantial amount fairly soon.

However, I had a look at their terms and conditions online this afternoon, and just happened to notice that they do not give you cover if you retire early.
Cover is available for those over 18 and under 65. I retired early at 53 and will be 60 in December.

If I had not had reason to look this up today I would never have known that in effect I should not even be covered. I also know that death benefit is included in these protection plan, so that any balance is cleared on death.

Can anyone tell me how I should proceed - should I ring them and tell them I retired at 53?

I am fairly willing to bet that I'm not alone in my age group of the above early retirement part! There must be millions of people who retired early!

ICan'tStandIt

I would suggest giving them a call and telling them that you're no longer working and ask them if it covers anything else.

Some cover things like going into hospital, but often they're not worth the paper that they're written on. PPI is just a cash-cow for credit card companies and if you weigh up how much you have paid compared to how long you might have claimed against it had you been able too, the "piece of mind" is pretty expensive.

If someone pays for it for three or four years and then is out of work for six months, they would have been better putting a monthly amount away in an ISA and using that money to pay the credit card bills.

Call them and get them to run through what you're covered for now you don't work and cancel it if you're not getting value for money.

How much do you pay back a month and how much is the interest ?

annetta123

My Cardholder protection this month was £20.63 and the interest, which is 1.313% per month is £37.61 this month!

I would love to completely clear this card, but cannot do so in one foul swoop, as I'm getting very tired of them ringing me. My limit is £2,800 and my balance is currently £2,731 I am paying minimum payments at the moment!

ICan'tStandIt

annetta123 wrote: »

My Cardholder protection this month was £20.63 and the interest, which is 1.313% per month is £37.61 this month!

I would love to completely clear this card, but cannot do so in one foul swoop, as I'm getting very tired of them ringing me. My limit is £2,800 and my balance is currently £2,731 I am paying minimum payments at the moment!

Why do they keep ringing you?

If you can only do the minimum payment I would strongly suggest you consider cancelling your PPI and it's just eating into your payment. It's also probably classed as a purchase, which means they will charge interest on it as well.

If I were you I would cancel it and write to them and say that the product was not sold properly as you were not told it would not cover your early retirement. Use one of the template letters that are on this site and try and claim your premiums back.

As you're no longer working and feeling like you're getting nowhere with the balance, you could also try requesting a temporary fixed payment arrangement. This is where you ask them to waive/reduce the interest rate if you say (and can proove) that you cannot really afford the current minimum payment.

annetta123

I am just off the phone with Co-op. It seems the only reason they've been trying to contact me is part of their "customer services", and I was told that they contact customers on average "once every 3 months".

I have cancelled the cardholder protection, as my estate when I die will most certainly be able to clear the current balance, if I die this week [God forbid as too much fun still to have].

I also told them that I could clear this card now if I choose, or reduce it as and when I choose. I left them in no doubt that I didn't want them to call me again, either on my landline or my mobile.

It seems to be all part of keeping customers informed. I had a long chat - they were pleasant, I spoke to two different women, but gave each of them a piece of my mind, as they were treating me like a fool. I also made them aware that I realized they were only doing their job.

That should be the end of that, as we say!

The cardholder protection, when I looked it up stated quite clearly that if you take early retirement you were not covered for most of the benefits, but when I spoke to the second woman she said despite that, it still covered me if I died, and that I should have told them I had taken early retirement. I did tell them I retired early as the first girl I spoke to knew this when she spoke to me in July - luckily she remembered. At the moment I cannot remember if I told them at the time I actually retired or if it was a considerable time later. I retired in 2002 December!

Where on this site do I get the template for claiming some of the Insurance back - I'll be totally honest I didn't realize I could do so?

ICan'tStandIt

"Keeping customers informed" is their way of saying that they want to sell you stuff you probably don't need or want.

It's good that you've cancelled the PPI as your minimum payment should go further now. Pay more as and when you can.

If you follow this link http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance you should end up in the right place for claiming back some or all of your PPI premiums.

Let me know how you get on.