Interest Added For Paying Insurance Monthly - Not Made Aware

Lentilist

I recently noticed that I've been charged PPI, against my wishes, for almost a decade on my home insurance. This was never mentioned when I took the policy out over the telephone, and the policy has been automatically renewed each year since with no further contact. I should have noticed it buried in the premium details letter, but didn't - however, not a problem as they have agreed to reimburse me with interest.

I've also noticed that I've been charged a similar amount as the PPI as interest in order to pay by monthly direct debit - again, something I would never have agreed to if I had been made aware at the time I took out the policy.

Do I have any chance of reclaiming these monthly interest payments too?

Lentilist

Nobody have any experience of this?

Seems as underhand as charging the PPI to me.

dzug1

You stand no chance of reclaiming them - you have received the service for which they were paid - a loan of the money with which to pay the annual premium. You can't really expect that to be interest free

highadmiral

Its quite/very common to pay interest on household or motor insurance premiums which are paid monthly.The interest rates can be very high too.

My other halfs previous car insurance provider were charging her over 60% interest for the benefit of paying each month by direct debit.Its a nice earner for them for sure and they have no risk by letting you pay monthly since,they simply stop cover if you stop paying.

Normally the interest is in the 20-30% range which is bad enough,always better to pay the premium in a lump sum if you can afford to.

Lentilist

I'm fully aware of why they charge interest - my issue is that I was never told that there would be a charge, and if I had been told, I would have simply paid upfront (the premium was only about £200, after all). To me it is just as sneaky as adding a PPI premium without my consent.

I have a contents policy at the moment which is paid monthly - no extra charge, no problem.

dunstonh

my issue is that I was never told that there would be a charge

It appears in the insurance policy documentation.

To me it is just as sneaky as adding a PPI premium without my consent.

I cant see how.

I have a contents policy at the moment which is paid monthly - no extra charge, no problem.

Typically the ones that have a higher premium tend to this or if the provider target market is those that cant afford to pay yearly so they make themselves more attractive to that market.

Lentilist

The PPI premium appears in the policy documentation too.

I took out the policy over the telephone - neither PPI nor interest charges were mentioned, and have never been since. If either had been, I would have been more than clear in my refusal to accept both.

In both cases I have been charged for something I neither asked for nor wanted, simply because it was (deliberately) not mentioned to me.