Letter received from Payplan - 'Cover My Payments'

Rex_Black

Hi all

Has anyone else received a letter from Payplan about their "Cover my payments" and " Cover my life" insurance plans?

I haven't spoken to them yet via the number they have mentioned in the letter, but from the text in the letter it sounds as if they might have ' mis-sold' these plans.

It does state in the letter how much has been paid into the 'scheme membership' (their wording) so if I was to cancel my payments into this or they have mis-sold it would that money be paid into my DMP?

I know it would be best to speak to them first but just wondering if anyone has already done it. Just haven't had the time to phone them yet

Thanks guys!!!

sourcrates

Pay plan were always trying to sell something, I believe they have stopped this practice now, and just concentrate on debt solutions.

Have you signed up for these services ?

Do you need them ?

Probably not, you may want to check what your paying for.

chelle1981

Hi, I used to pay into this but realised that I never needed it- I asked for my miney back but was always told that this was a membership scheme so not insurance and therfore could not be missold

I have recently written a massive complaint i felt I was put under pressure to take out the cover my plans and felt that the sales person made a false statement that influenced my decision to take out the product

Had they asked and explained in more detail, they would have found I already had insurance that covered the same thing and therefore this product was useless for me and to me is unfair practice for this reason I have requested to get all the cover my money back

It will be interesting to see what they say as they always maintain that this is not insurance and a membership scheme and therefore is never missold

what does your letter actually say?

Rex_Black

chelle1981 wrote: »

what does your letter actually say?

Cover my Payments membership scheme

We are writing to let you know that we have decided to conduct a review of our Cover My Payments membership scheme. Over time the information we have been providing to our clients about the scheme might not always have been clear. As an existing member of this scheme we wanted to confirm you were eligible for the product, it is suitable for you and that it is providing value. We also wanted to provide you with details of what to do if you believe this is not the case. We have set out the options available to you at the end of this letter.

---

It then goes on to explain what the "scheme" is.

TBH over the last couple of months I have been wondering what it was actually for, and whether I could stop the payments into it. Looks like they may have been getting a lot of enquiries from others thinking the same.
Am going to call them today and find out what the score is!

bayrandle

I've had the same letter, be interesting to see what their response is...

chelle1981

I've had a response from them which basically tries to say they have done nothing wrong and that they told me on the phone all about it and sent me a booklet and that I had 30 days to cancel from the date I took it out and therfore thy feel they have not done anything wrong and they feel the case is closed!

I am going to reply with the fact that they have contacted customers about if they actially need this product so yo me this is admitting they know this product is not suitable!

[Deleted User]

Wonder if anyone has tried taking it to the Financial Ombudsman Service, reckon they should welcome this sort of complaint

supersavor

I recieved the letter yesterday , i still pay for it and am now considering cancelling .

IF they feel they have done nothing wrong why have they stopped selling it and now showing concern with to regards why anyone has it.

I was so much in debt at the time i was advised this would be suitable for me if i lost job etc as if that happened creditors would be difficult with regards to lowering payments yet in letter it says they would negotiate anyway.

I also know many people make token payments of £1 until they are in a better place.

The whole letter seems like the way banks now send out annual eligibility letters for packaged accounts . They know they have made mistakes and are now trying to lesson impact of missold complaints.

think i might phone payplan

andyfromotley

Almost certainly realised that they are in the %h1t for selling this type of product and are trying their damnedest to head off a flood of claims!

sourcrates

This has cropped up before :

http://forums.moneysavingexpert.com/showthread.php?t=2911962

foxyvn

I have also received same letter although my plan ended in October last year. Wondering why they have sent this to me. As far as I was concerned everything had finished and would not been any wiser . I think a call to them might be on the cards has anyone heard anything back from them? Like others I did feel pressured to buy the cover my payments and the cover my life plans although I was told there was no obligation to purchase but would this be enough to base a claim on? Think a call or email to the financial ombudsman may also be on the cards see if they are aware of this