Paymentshield (ridiculous customer service) would like advice!

BatCat

Hi Folks,
My IFA set me up with a good deal on buildings and contents insurance and mortgage payment protection insurance when I remortgaged a couple of years ago. Last August I found a better deal on buildings and contents insurance with Nationwide and so rang up Paymentshield to cancel my buildings and contents insurance. They agreed and sent me out a letter saying so. As we have the two policies I asked them which direct debit to cancel and cancelled the dd.
This spring we got a letter from Paymentshield saying 'we are making changes to your buildings and contents insurance'. 'Huh?' I thought and rang them. They had cancelled the wrong insurance. However, it took them 2 months or so before they could find the call I'd made before they believed me. They rang up and apologised last week. I asked for a refund of the money I had paid for buildings and contents insurance that I hadn't asked for, they agreed to refund me the premiums. I was very nice about it.
This morning a letter arrived for 40£. This is a refund of 'overpayment of premiums'. They have refunded me the difference between the mortgage insurance and the house insurance and are apparently claiming that had we wished to claim on the mortgage insurance during the period we were paying for house insurance that it would have gone through. What sort of foolishness is this?
I have drafted a letter asking for a full refund of the premiums for the house insurance and a written apology and am sending this off to the head of their customer service department.
Is their a higher power if they don't back down? Anyone have any tips?
Thanks,
BatCat

RadoJo

I don't really understand the problem here - you say you cancelled the B and C insurance, but still wanted the mortgage protection insurance. They cancelled the wrong one (clearly the cheaper one) and have now refunded you the difference between the payments you made and those you should have made (ie to ensure that you are not out of pocket).

What more were you after, or did you ask them to cancel the mortgage protection insurance as well?

BatCat

Hi,
The problem is for 9 months I was paying for B & C insurance, not Mortgage Payment Protection insurance. Had I been in the situation where I would have needed to claim on MPP then they would have told me where to stick it, or I would have had to have waited for them to resolve the situation (which took 2 months).
So I would have wound up in a very precarious position all because they made a mistake (which they have not said sorry for) in cancelling the wrong policy.
Thanks,
BatCat

RadoJo

Unfortunately, as they were not requierd to prove that they would still have covered you in the event of claiming and discovering the wrong insurance had been cancelled, I am not sure that there is much you can do. Insurance is, by its very nature, a business where all payments are speculative and unless you can show that you have suffered by not having the correct insurance, there seems little you can do. As it stands are you actually out of pocket?

dandyman_2

I am most annoyed with Paymentshield as I took out a mortgage protection policy mid month to cover sickness accident and unemployement. They have charged for a whole month rather than for a half month. So my first payment is two times the monthly premiuim which I have not budgeted for and was not expecting. It was not made clear to me on the sign up of the policy.

I bet if I was to make a claim under the unemployment cover two weeks before the 90 day exclusion period applied I imagine they would not let me make a claim would they?? Even though I have paid for these two weeks prior to commencement of policy!! (God forbid hope it does not happen), but its just profiteering to me charging me for a whole month of a policy when the policy commenced mid month. I shall be writing into to Payment Shield about this as they are charging me for something I have not had the benefit of? Can they do this?

McKneff

did you not notice the wrong amount being taken out of your bank every month for 9 months.

As for the would have and could have, it really doesnt matter because it's in the past and has no bearing on what is happening now.

payless

annie - thats a very old thread
Dandy

So my first payment is two times the monthly premiuim which I have not budgeted for and was not expecting. It was not made clear to me on the sign up of the policy.

are you saying they collected a double premium , or you were expecting only a 1/2 premium? if the latter its usual will most insurers that you pay the full premium each month... ie start 15th .. if paying 15th, this covers uptil the 15th next month

p/s usually they allow a choice of premium dates

did you buy via an adviser , direct or via a no advice website?

Did you get an initial free period ?

McKneff

Your right, payless, i was looking at dandy' (being a new post) and didnt look at the original date. how silly was that