payment protection cover

studentgirl_2

Hi Guys I hope you can halp me understand all of this. I have a Lloydstsb c card with a balance of £11,000 on it :eek: But several months ago I wrote to the them as Im broke and have reduced my payments to £13.00 per month with 0% intrest. Iv just looked at the bill for the first time, slack i know. but im being charged 88.00 per month for payment protection plan. what is all this and why do we pay it, surly lloydstsb would have stopped this. what do I do I recon i have been paying this for months.

Thanks Studentgirl

nomoneytoday

How is it the bank's fault that you didn't check the statement for months?

Surely if you come to an agreement it would be prudent to check it was actioned correctly at the time?

studentgirl_2

Sorry I made a mistake

fudgecat

It is essential that you contact them immediately and cancel the payment protection at once. This will at least stop the £88.00 rolling up. You need to check the date that you agreed to the payment protection, so that you can calculate the amount you must have paid since you took out the card (I am assuming that you would have ticked the yes box right back to the cards inception). Whether you have a case for the insurance being missold, I don`t know, but check out what Martin has to say about PPI reclaiming.
It is possible that Lloyds may agree to refund the £88.00s since you came to a 0% repayment agreement with them.
Obviously you now know to read statements and terms and conditions carefully! For many of us, it is an expensive lesson. Good luck.

fifitrix123

I had the same problem with Virgin and MBNA, I rang last year as it only used to pay out £10 per month and I alwasy pay CC bill in full so was not worth it for me, so asked them to cancel it.
Girl told me there was no need as I paid it in full so would never be charged.
I checked statement this time and they have charged it so I called to ask why as I had cleared my balance in full only to be told they had changed the rules so I have been charged this each month despite clearing my balance each time!
Told me I should have had a letter which I didn't! So I have contacted Virgin who have passed it on to MBNA but still have not taken it off my account despite me requesting it to be taken off!!
MBNA still looking into it apparently

BigNige

you should be very careful with payment protection cover and read the small print
lenders have been accused of misselling PPC in the past so they are running scared right now

Moggles_2

studentgirl wrote: »

I've just looked at the bill for the first time, but I'm being charged £88.00 per month for a payment protection plan. What is all this and why do we pay it? What do I do? I reckon I have been paying this for months.

Your credit card and PPI are two separate products. The former is run by the card provider, the latter may be sold by the card issuer, but is operated by an insurance company.

The purpose of PPI is to cover card repayments in case of accident, sickness or unemployment, depending on your policy. For advice, see Martin's *PPI Reclaiming Guide*

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

If you feel you have grounds for complaint against LloydsTSB, I would request a copy of its complaints procedure. This sets out the time limits allowed for dealing with your complaint. The bank is also obliged to confirm the result of your complaint in writing.

You have the right to take your complaint to the Financial Ombudsman if you are still not happy.

DestroyingAngel_2

Studentgirl, your payment protection covers the balance on your card. It does not matter how much you pay off each month, as long as there's a balance on it, PPI will hit. On a balance of £11000, if you're getting charged £88, this means your PPI is about 80p per £100 of your balance. Your best bet would be to cancel the PPI; you're on an arrangement plan with Lloydstsb for £13 per month at 0%, there's hardly any way you could default on THAT, right?

jamalfatty

Before you go and cancel it though, as you mentioned you are broke if this is anything to do with being made redundant / accident / sickness etc, dont whatever you do cancel it!

You need to get hold of the policy documents to see if you could possibly be covered, if you are - happy days, if not, do as others say and get it cancelled ASAP if you think you definately wont need it