credit card insurance.

llol_slim

Hi
im planning on cancelling my credit card insurance, as its costing me £20 a month, and I dont really want it.
My question is, should I get the money back as I havnt used it?
I have a capital one platinum out of interest.
i was going to ring them up and ask them, but i dont want to get fobbed off with anythng so thought I'd ask the people in the know
Thanks in advance

medman

Hi

You wouldn't necessarily get your money back just because you haven't claimed.

However, if you can demonstrate that you never were covered and it was included against your better judgement then you can.

Your best bet is to write to them explain that the cover provided was never suitable for your circumstances and that you have other insurance policies to cover ill health, loss of earnings or death. Then ask them to cancel the policy and refund the premiums paid to date because the policy would not have paid out if you had needed to claim, ie you were never covered.

If, however, it did cover you adequately for the period you remain liable for the premiums paid so far and would not get a refund.

The other claim you could make is if you felt the policy had been mis-sold to you in the first place such as automatically being included, or suggesting you might not get the card if you didn't take the policy.

Hope this helps and good luck. If you want some help composing a letter let me know.

Best Wishes

MM

sammiboo

medman wrote:

Your best bet is to write to them explain that the cover provided was never suitable for your circumstances and that you have other insurance policies to cover ill health, loss of earnings or death. Then ask them to cancel the policy and refund the premiums paid to date because the policy would not have paid out if you had needed to claim, ie you were never covered.

yes i agree with this, you should write to them. I have been protection on my overdraft as i have posted before. I am currently working on getting this cancelled and getting back what i have paid as i didnt know i had it.

When i phoned barclays to cancel it i was put through to one of their lovely indian call centresl, where i was told that the insurance wasnt costing anything. So they should have that recorded, and will use it in my defence.

llol_slim

orite, i see.thank you
Basically I shouldnt have agreed to it is a waste of money, and I wish I hadnt bothered with it.
But that's my fault not theres, so I suppose i shouldnt complain about it if I couldnt see for myself it was a waste of money.

medman

Hi Slim

Not necessarily, sometimes we are sold things we don't need, you can't be expected to know everything. If you were sold inappropriate, expensive insurance and you now think you shouldn't have bought it then technically it was mis-sold. There have been heavy fines recently (GE Capital £610,000) for mis-selling these PPI policies.

If I were you I would write to them tell them you don't think you should have been sold this policy and ask for it to be stopped and all premiums repaid. All they can say is no!

Some companies have already started paying out and it is likely to become like bank charges or mis-sold endowments.

Give it a go what have you got to lose?

MM

llol_slim

ok, thanks
how do i know if it was inappropriate or expensive?
I have a £3300 limit (£2500 balance) and its costing me ~£20 a month plus ~£25 interest.

medman

In my opinion all PPI sold with a financial product is usually expensive and inappropriate.

Why do I think that? well for some banks these policies make up 14% of their profits....that's too much. Of all insurance categories PPI pays out the lowest proportion of premiums collected in claims. They have more exclusions and exceptions so they can avoid paying out.

It is definitely inappropriate if for example you are self employed, a contractor or a temp as you aren't covered. When they do pay out they only cover your minimum payment for a limited period of time: so not a great insurance against losing income. Some policies will not pay out for the first three months after you have lost your job; most people find another job in that time!

You can buy this type of insurance much cheaper and it isn't tied to one loan/CC/overdraft/HP etc so it could cover all your commitments for a lower premium.

Sorry to keep going on but PPI is more often than not too expensive with poor cover.

MM

llol_slim

convinced then.
So i need to start a letter going .
thank you