'"Wish I'd been stupid enough to get PPI in the first place"' blog discussion

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




Please click 'post reply' to discuss below.
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  • SavvyS
    SavvyS Posts: 32 Forumite
    I had opened a current account (for salary purposes) with Lloyds TSB and I was told that a PPI was compulsory. I was told that for every pound spent on my debit/credit card I would be paying some pennies towards the PPI. I did not use the credit/debit cards so effectively I have not spent anything towards the PPI. Should I still complain? Would I still be entitled to a compensation?
  • working
    working Posts: 213 Forumite
    The thing is, these people who didn't read the small print (and are therefore foolish for not doing so) have been rewarded because of the interest recieved.
    In most cases this puts them in a better position because they wouldn't have invested the money in an 8% account in the first place.
  • working wrote: »
    The thing is, these people who didn't read the small print (and are therefore foolish for not doing so) have been rewarded because of the interest recieved.
    In most cases this puts them in a better position because they wouldn't have invested the money in an 8% account in the first place.

    Did you actually read Martin's blog??
    Like all religions, the Faith of the Invisible Pink Unicorn is based upon both logic and faith. We have faith that she is pink; we logically know that she is invisible because we can't see her."
  • oldvicar
    oldvicar Posts: 1,088 Forumite
    edited 7 February 2012 at 10:35PM
    Being LIED to that policies were compulsory – they weren’t.

    Yes they were ... if you wanted to be accepted for a loan.

    Everybody who wasn't stoopid knew that.

    MSE probably even commented at the time about the quasi-compulsory nature of these policies ... and if he didn't then where the hell was he?
  • Percy1983
    Percy1983 Posts: 5,244
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    Sorry but I still do feel its wrong, I read small print so never ended up with PPI, with that I didn't the security of PPI.

    I seems if somebody at the same time didn't read the small print then they got x years of security and at the end out it get the money back anyway.

    So a the savvy person gets nothing, less savvy people gets years of free insurance.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • MSE_Martin
    MSE_Martin Posts: 8,273
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    oldvicar wrote: »
    Yes they were ... if you wanted to be accepted for a loan.

    Everybody who wasn't stoopid knew that.

    MSE probably even commented at the time about the quasi-compulsory nature of these policies ... and if he didn't then where the hell was he?

    No at the time I said "it wasn't compulsory" as it wasnt and not to go for it - as you could get far cheaper standalone policies if it was neeeded (its even if my first book I think). And that's the point. This was a lie - to be compulsory the PPI had to be within the APR. So if they said it was, or even worse, it actually was then the whole thing is a scam - which takes us back to the blog.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
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  • RuthnJasper
    RuthnJasper Posts: 4,032
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    I have an IQ of 159, hopefully I'm not stupid... but I got PPI because I was told it was necessary.

    I have yet to receive anything back; I'm still awaiting a decision from the FSA.

    Of course, if it was some dodgy 'back street' place then it's sound to read the conditions extremely carefully (if you even find yourself these in the first instance) - but most of these loan and card providers are long-established businesses with a reputation to protect. Therefore you expect that their advice is correct and honest.

    This doesn't mean that I'm daft, though I certainly feel stupid. :o
  • Alpine_Star
    Alpine_Star Posts: 1,353
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    Percy1983 wrote: »
    Sorry but I still do feel its wrong, I read small print so never ended up with PPI, with that I didn't the security of PPI.

    I seems if somebody at the same time didn't read the small print then they got x years of security and at the end out it get the money back anyway.

    So a the savvy person gets nothing, less savvy people gets years of free insurance.

    They didn't get ''years of free insurance'' because, in broad terms, they either didn't know they had it or couldn't claim on it if they did - due to it being mis-sold. Get it?
  • Percy1983
    Percy1983 Posts: 5,244
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    They didn't get ''years of free insurance'' because, in broad terms, they either didn't know they had it or couldn't claim on it if they did - due to it being mis-sold. Get it?

    Just because they where told they had to have it when they didn't they can't claim on it?

    I am pretty sure they could claim and I guess many did.

    With that can people still claim it back if they made a claim? as that would be even worse.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • Percy1983 wrote: »
    Just because they where told they had to have it when they didn't they can't claim on it?

    Like I said in broad terms PPI was mis-sold either because it was loaded without the express knowledge of the customer or because it was unsuitable and couldn't be claimed on. Only a relatively small proportion was mis-sold as being compulsory - Competition Commission figure bear this out - and as such your ''years of free insurance'' theory largely doesn't apply. But even if it did, so what?

    Perhaps those who flogged PPI should have read the FSA small print that obliges them to refund mis-sold premiums plus 8%.
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