MPPI with Paymentshield - Premiums increase

Steve0

I today also received a letter about premium increase. My premium has gone from £22 per month to £27.55. This is just over a 20% increase and so can only assume that we are looked at individually. Having read through some of the other price increases posted on this forum, there appears to be no consistancy and therefore perhaps certain risk factors must be considered ie; amount of cover, age , profession, length policy has been in force...

carol120401

I've been with Payment Shield for nearly 2 years and at the end of the 1st year, they added a monthly admin fee. Yesterday, I received a letter advising that my premium was doubling as was the admin fee. Whilst not happy with the increase in premium, given the current economic climate, it's understandable but 100% increase is totally unreasonable. However, why have Payment Shield decided they need to double their admin fee as well?

Given that PS are owned by Towergate who cream significant commission from their supporting insurers, (average commisison on a creditor policy is generally around 60% across the market), ths insurer will be receiving less than 50% of this increased premium. Total rip off and the next thing the FSA needs to look at is the disgusting levels of commission that providers take from consumers for low cost, low frequency policies which includes GAP, payment protection and mobile phone and gadget insurance!

dbuk44

dunstonh wrote: »

Its all providers. Whether they had it agreed in their terms or not.

Dunston - on my refund letter / increase letter from PS it also says that they have amended the T&Cs so that they can only increase charges once every six months.

Do you know if this is also common across all providers now or specific to PS?

dunstonh

dbuk44 wrote: »

Dunston - on my refund letter / increase letter from PS it also says that they have amended the T&Cs so that they can only increase charges once every six months.

Do you know if this is also common across all providers now or specific to PS?

I think the providers are all going to have a different take on it. Some may say 6 months, you may get some at 12 months. You may even see some offer guaranteed premiums. Although I suspect there will still be some that have 3 months or none at all.

Bluefusion

Well I got my third letter (30 July 2010) now with ANOTHER increase today from payment shield.

1 August 2008 Started off £18pm
1 September 2009 now going up to £38pm
5 April 2010 Refunded £216 (1/3/09-1/3/10)
1 March 2010 now going up to £40pm
1 September 2010 now going up to £57pm