Letter received from Payplan - 'Cover My Payments'

tain

redpete wrote: »

Why? Many of the similar letters from banks regarding their loans were not because they were of little value or in any way unsuitable but just because of minor technicalities on previous communications.

I think the difference here is the nature of the product you're 'buying' from PayPlan. It's meant to get people out of debt as quickly and affordably as it can. But paying expensive 'insurance' on top of monthly debt payments means it is fundamentally failing on it's primary objective. Not quite the same as other financial products.

tain

I can't seem to log in to my just a bank/pay plan plus account (albeit I finished my DMP a good 3 years ago now).

Anyone know why they would do this? I thought financial institutes of any description needed to offer up to 6 years of accounting? Not sure how or if this applies to a DMP.

sourcrates

tain wrote: »

I can't seem to log in to my just a bank/pay plan plus account (albeit I finished my DMP a good 3 years ago now).

Anyone know why they would do this? I thought financial institutes of any description needed to offer up to 6 years of accounting? Not sure how or if this applies to a DMP.

My IVA was wound up 3 months after completion, all accounts closed, and traces removed, I assume it will be similar with a DMP, they won't keep information on closed debt arrangements for very long.

tain

sourcrates wrote: »

My IVA was wound up 3 months after completion, all accounts closed, and traces removed, I assume it will be similar with a DMP, they won't keep information on closed debt arrangements for very long.

Is this standard, or an unusual action for PayPlan to take?

I've found my paperwork anywho - I'll post anything interesting in the T&Cs that I find.

tain

For info - back in 2008 it was 5% of the 'monthly benefit' for single applicants, 7.5% if joint for the cover my payments.

Cover my life was £5 a month.

brokeinyorkshire

I just read the original post.

I have been with PayPlan for about seven years in a DMP. They pressurised me into taking on both policies when I joined up. I have contacted them several times over the years and asked to opt out of these policies as I felt that the money would be better spent paying off my debts and each time I was fobbed off.

Since seeing this I have written them a letter asking to opt out of both policies and also asking for my premiums to be paid back. We shall see what happens but I won't be fobbed off again.

fermi

People might like to ask PayPlan today when you are going to receive compensation for the mis-selling of these.

https://twitter.com/ExperianExperts/status/609261376331091969

fermi

Predictably they simply ignored that question.

A debt management company burying their heads in the sand over money they owe their customers.......

brokeinyorkshire

Just an update re Cover My Life/Payments.

I have put in a written complaint regarding the above and have received a letter saying both have been cancelled which means more money can go towards my debts.

I also received a letter stating that my complaint is being dealt with and that they have eight weeks to investigate. I asked them for all my premiums back as I just thought that I could put the money towards my outstanding debts.

Will update when I receive an outcome.

Uchoof

I complained to Payplan and they have offered to refund the money I had paid into the scheme plus interest at 3%. Payplan have acknowledged in their reply that it was never suitable for me based on my financial situation. This was something they knew given that I have a DMP with them and have been open and honest about my assets (none) and debts (plenty).

I think it's definitely worth pursuing this and double checking if it's suitable for you.