PPI Reclaiming Discussion part 4

marshallka

Stereo mike, Can I ask, have you ever been missold or do you just work for a company where people are making complaints?

stereo_mike

marshallka wrote: »

Stereo mike, Can I ask, have you ever been missold or do you just work for a company where people are making complaints?

Once I was mis-sold (Thanks for peoples help on this), but I also work for a company that deals with ASU complaints, and every other type of complaint

marshallka

stereo_mike wrote: »

Once I was mis-sold (Thanks for peoples help on this), but I also work for a company that deals with ASU complaints, and every other type of complaint

Ok. Nice to know you can help out then. Its good to have people on here that are in the know.
What are ASU complaints? Sorry to be thick here.

Accident, sickness and unemployment???

stereo_mike

marshallka wrote: »

Ok. Nice to know you can help out then. Its good to have people on here that are in the know.
What are ASU complaints? Sorry to be thick here.

Its just terminollogy for PPI and MPPI, it stands for Accident, sickness and unemployment, i.e. the things that PPI and MPPI cover most people against

marshallka

stereo_mike wrote: »

Its just terminollogy for PPI and MPPI, it stands for Accident, sickness and unemployment, i.e. the things that PPI and MPPI cover most people against

Yeah, posted after I engaged my brain:o.

Have you ever heard of a complaint against the actual insurer (not the broker or the lender) about the rebate of PPI you have got when you settled a loan being unfair.

stereo_mike

marshallka wrote: »

Yeah, posted after I engaged my brain:o.

Have you ever heard of a complaint against the actual insurer (not the broker or the lender) about the rebate of PPI you have got when you settled a loan being unfair.

The insurers are usually very good at refunding premiums, as they only have to refund the actual premiums not any additional interest (within 30 days), as it is the lender that benefits from this.

Prior to single premium policies being non-cancellable their were no details about what refund you could get, therefore any complaintss regarding pre Dec-06 policies are very unlikely to succed. After this date all policy holders should have been sent a letter from the insurer advising that these policies can now be cancelled and the likely refund you would receive. Also nowadays cancellation examples are given in the literature prior to sale (well they were until SPPPI was banned)

marshallka

stereo_mike wrote: »

The insurers are usually very good at refunding premiums, as they only have to refund the actual premiums not any additional interest (within 30 days), as it is the lender that benefits from this.

Prior to single premium policies being non-cancellable their were no details about what refund you could get, therefore any complaintss regarding pre Dec-06 policies are very unlikely to succed. After this date all policy holders should have been sent a letter from the insurer advising that these policies can now be cancelled and the likely refund you would receive. Also nowadays cancellation examples are given in the literature prior to sale (well they were until SPPPI was banned)

Thanks for that. What about when a policy included life insurance, should there be 30 days cancellation notice even for sales going back to 2000? Surely there should have been some rules then...

Surely the interest should be considered too as the insurers knew that there would be interest on it as they are sigle premiums. They would not set them up any other way.

stereo_mike

marshallka wrote: »

Thanks for that. What about when a policy included life insurance, should there be 30 days cancellation notice even for sales going back to 2000? Surely there should have been some rules then...

The FSA rules on cancellations was instructed in Dec 06 and applied to all single premium policies no matter when they were sold.

Prior to the FSA ruling most single premium polcieis could not be cancelled after the 30-day cooling off period following inception, and therefore no illustartions were provided for refunds.

After Dec 06 all single premium policies could be cancelled, however it is up to the insurer to set the refund figure, this is why no insurers now do pro-rate refund on single premium policies. As I said previously all insurers should have written out to their policy holders advising that they can now cancel, and the potential refund a client may receive. These refunds are very top heavy, as most insuers incure most risk and cost at the start of the policy, therefore you will always receive less than a pro-rate refund.

stereo_mike

One thing I must add that doesn't ever seem to have been raised on this site. If your claim is unsuccessful, check your paperwork before cancelling the policy in a blind rage, as a lot of company's refund the whole premium or a portion of the premium at the end of its term, subject to certain terms and conditions.

You might get a lot more back than cancelling it now.

marshallka

stereo_mike wrote: »

The FSA rules on cancellations was instructed in Dec 06 and applied to all single premium policies no matter when they were sold.

Prior to the FSA ruling most single premium polcieis could not be cancelled after the 30-day cooling off period following inception, and therefore no illustartions were provided for refunds.

After Dec 06 all single premium policies could be cancelled, however it is up to the insurer to set the refund figure, this is why no insurers now do pro-rate refund on single premium policies. As I said previously all insurers should have written out to their policy holders advising that they can now cancel, and the potential refund a client may receive. These refunds are very top heavy, as most insuers incure most risk and cost at the start of the policy, therefore you will always receive less than a pro-rate refund.

Mine was in 2000 and there was no cooling off period of 30 days at all. It included life insurance and also there was no mention cancellation only the rule of 78 method and how would anyone know what that meant?

I find this very unfair and also only fair to the insurer.

What are your views here. I mean on unfair terms in consumer contracts and my complaint is with the FOS at the moment. It was actually FOS that advised me and wrote to the insurer on my behalf.

Do you think FOS will take the "interest" into account if they uphold my complaint?