Letter received from Payplan - 'Cover My Payments'

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  • tain
    tain Forumite Posts: 710
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    That's excellent news. I'm on it like a car bonnet. So to speak.
  • brokeinyorkshire
    brokeinyorkshire Forumite Posts: 263
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    Great news Uchoof!

    I am hoping and praying for a similar outcome as I am in a similar position to you.

    Fingers crossed!!
    (c) Broke in Yorkshire. ( there are worse places ) :D

    Those that matter don't mind and those that mind don't matter!
  • Big_John_246
    Big_John_246 Forumite Posts: 56 Forumite
    edited 25 June 2015 at 8:42AM
    Morning All

    I have just found this post and have been reading with great intrest. :think:

    I have not recived any kind of letter from PayPlan.

    I have just had a look at my PP account and found that I am paying the following;

    Premium Securities Payplan Cover My Payment 03/06/2015 £9.91 OK
    Premium Securities Payplan Cover My Life 03/06/2015 £5.00 OK
    Premium Securities Payplan Cover My Life 03/06/2015 £5.00 OK


    So I am paying £19.91 since Dec 2009 so a quick calculation makes 68 months x £19.91= £1,353.88. :eek:

    I do suffer with dyslexia and have trouble with things like this so how would I know if it's suitable for me.

    If I tried to claim this back it would pay 6 of my creditors back and leave 2.

    Please advise what I should do.
    It’s nice to be important but it’s more important to be nice. :dance:
  • Big_John_246
    Big_John_246 Forumite Posts: 56 Forumite
    Morning All

    Does any one have any advice on this for me please.

    Please read my post which is just above this one.

    Any help or advice would be greatly appreciated.

    :beer:
    It’s nice to be important but it’s more important to be nice. :dance:
  • rizla_king
    rizla_king Forumite Posts: 2,895 Forumite
    Complain that is was not suitable and was mis-sold. Then take them to the FOS if they refuse a refund.

    Not sure exactly how to word it.
    Still rolling rolling rolling...... :) <
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  • tain
    tain Forumite Posts: 710
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    edited 25 June 2015 at 9:44AM
    Morning All

    Does any one have any advice on this for me please.

    Please read my post which is just above this one.

    Any help or advice would be greatly appreciated.

    :beer:

    I went on their website and filled in their online contact form, and they called me back in about 30 seconds. They then passed me to the memberships section who asked me a whole bunch of questions as to why I don't think it was appropriate for me to have been sold the membership.

    This was only yesterday, so I have no idea if it will be successful. They said a decision can take 8 weeks. She seemed familiar with the whole process though as she was asking all the right questions to catch me out.

    My line of reasoning was that a) I lived with my parents throughout my DMP, and I had stated on a number of occasions that if I couldn't keep my payments up, they would be able to; and b) that being on a debt management plan by it's very nature meant that I couldn't afford further insurance membership payments - the point of a DMP and working out my maximum available money each month was to pay back my creditors as quickly as possible. Should I have become unwell or been made redundant from work, then it would be the job of Payplan to renegotiate with my creditors based on my changed circumstances, not to sell me insurance that would only cover me for a year anyway.

    I said that considering they were a debt management organisation, I wasn't made aware of all my options as they were never explained to me properly. At the time I had no reason to doubt their advice, but now I realise that it was poor advice and I should have finished paying my debts 3-4 months earlier than I did, so they failed in their advice to manage my debts. If they had told me 'should you become unemployed and can't pay your debts, we can then ask your debtors to reconsider your plan', then I'd never have take out the insurance/membership.

    As I said before - this was all yesterday, so I really don't know if it will be successful. A big difference in my case is that I finished my DMP early in 2012, so this is much more akin to PPI rather than cancelling your membership mid-term and claiming the money back, which I think has a far higher chance of success (can you pull out of your DMP with Payplan and move elsewhere? Will that negatively impact on Payplan?)
  • brokeinyorkshire
    brokeinyorkshire Forumite Posts: 263
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    Uchoof wrote: »
    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.

    Well I received a reply from Payplan today about my complaint and basically they have refused to refund my payments to the scheme. They haven't addressed my concerns and quoted some guff about me entering the scheme at first etc, etc.

    I Feel sickened tbh and don't know whether to fight on or just let it go now. My so called membership has now been cancelled so at least the extra money is going towards my debt now.

    It just stinks that they have been dealing with people at their most vulnerable and cajoling them into joining these schemes. Bad practice to say the least.

    There was an Ombudsman leaflet in with the letter so now I have to decide whether to take this further. Don't know if I can be bothered as I don't feel confident I will win now. :(
    (c) Broke in Yorkshire. ( there are worse places ) :D

    Those that matter don't mind and those that mind don't matter!
  • fermi
    fermi Forumite Posts: 40,556
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    There was an Ombudsman leaflet in with the letter so now I have to decide whether to take this further. Don't know if I can be bothered as I don't feel confident I will win now. :(

    Companies like this invariably do their best to belittle any complaint to try to put you off going to the ombudsman.

    I would certainly push on with the ombudsman if it was me. The fact that they have failed to address your concerns is indicative of a company that has no proper defence against them, but wants to put you off anyway.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • brokeinyorkshire
    brokeinyorkshire Forumite Posts: 263
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    Thank you Fermi.

    On reflection I probably will fight on.

    I have nothing to lose after all.
    (c) Broke in Yorkshire. ( there are worse places ) :D

    Those that matter don't mind and those that mind don't matter!
  • tain
    tain Forumite Posts: 710
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    Bringing this back up to see if anyone else has had any more recent dealings with Payplan or the Financial Ombudsman over this?


    Payplan ignored almost all the points in my complaint and refused to refund anything except the last few months where I'd called to cancel and they'd ignored me.


    It's with the Financial Ombudsman now, citing my main reasons as them being very unclear what was financial advice to reduce my debts and what was them selling me an insurance product, plus it not being suitable. I forgot to mention that it was never communicated to me if the membership scheme earned them any commission. If it did, I'd have never taken it out as it would be clear that it wasn't financial advice.


    The main findings from my claim is that the FO is looking into whether this was an insurance scheme or not. Depending on the outcome of this depends on how it is managed and by what team. I'll keep you all informed, as if it is classed as PPI, it'll have some pretty significant ramifications.
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