The Financial Ombudsman

magpiecottage

Corky_Buczek wrote: »

My redundancy at the time I took it out was for 7.5 months net pay. It was at 11 months when I cancelled it. So you are looking at a very limited pay out to begin with which was reduced to negligible in that regard by the time it was cancelled less than three years later.

This line of argument has two flaws. The first is that PPI pays out regardless of any redundancy payment (although you would be deemed to still be in employment during any period for which you receive payment in lieu of notice).

The second is that your redundancy pay might be a stated aspiration of your employer but it is NOT guaranteed. If you do not believe me, pop into your local BHS and ask.

WatchMan

Corky_Buczek wrote: »

If I changed employer, I assume that no cover would apply if I had been laid off in the first year. That is certainly an exclusion on a mortgage protection policy that I used to have (which was sold to me fairly)

That's not a clause I've seen in credit card PPI policies and I doubt it would've been in yours.

There was no discussion of the policy cover at all when it was taken out by HBOS. Nowhere were there any questions about its suitability.

As I've said above - that wasn't required. It was up to you to check - which takes me on to...

Corky_Buczek wrote: »

Is it too much to ask that any insurance is discussed properly before its taken out so its applicability can be measured. The premium remained constant but because of my continued employment with the same employer, any potential benefits diminished. Is it not something that those selling the policy should point out ? If the policy isn't mandatory, should they not tell you that you can cancel at any point or at least what the cancellation clauses are ?

HBOS will say that a policy document with all the details was supplied after the sale. This would have explained how to cancel the policy and that you could've done so within 14 days at no cost.

Corky_Buczek

This line of argument has two flaws. The first is that PPI pays out regardless of any redundancy payment (although you would be deemed to still be in employment during any period for which you receive payment in lieu of notice).

The second is that your redundancy pay might be a stated aspiration of your employer but it is NOT guaranteed. If you do not believe me, pop into your local BHS and as

k

And the world could cave in tomorrow and then what ?

You base a decision on whether or not insurance is applicable on your expectations and belief of how you are protected at that time - if you are fortunate for the seller to let you know you have a choice.

You say that on one hand my employer's redundancy scheme could fall apart but if it doesn't (and it hasn't) any pay-out would be effected.

You seem to be arguing that employer's promises aren't worth a docking . Doesn't alter the fact that when I finally cancelled the policy I was paying a rate of around 10% for a basic PA policy with a small sum inured. It was a rip off

Had the facts of this policy been pointed to m as well as the fact that it was NOT mandatory, I wouldn't have taken it out. I wonder who in their right mind would ?

dunstonh

You say that on one hand my employer's redundancy scheme could fall apart but if it doesn't (and it hasn't) any pay-out would be effected.

Insurance is about covering what may happen. Not what has happened. Just because you have been fortunate, does not mean it cannot happen.

You seem to be arguing that employer's promises aren't worth a docking

They are not if the company goes into administration and cannot continue as a going concern.

Doesn't alter the fact that when I finally cancelled the policy I was paying a rate of around 10% for a basic PA policy with a small sum inured. It was a rip off

Doesn't matter.

Had the facts of this policy been pointed to m as well as the fact that it was NOT mandatory, I wouldn't have taken it out. I wonder who in their right mind would ?

And all you need to do is provide them with the evidence to back up that allegation.

Corky_Buczek

HBOS will say that a policy document with all the details was supplied after the sale. This would have explained how to cancel the policy and that you could've done so within 14 days at no cost.

Aah a policy booklet for an insurance that i didn't ask for and for which cover wasn't discussed. Something you wouldn't be looking out for. But that makes it OK, does it ?

Whatever you may think, i was paying approx £450 to £500 for cover that at the time of cancellation would have paid out max around £5,500 in respect of PA cover only.

AS I said earlier if you think that premium is fair then we'll just have to agree to disagree. I feel totally ripped off. I mentioned my dealings elsewhere with regards to how I pay from broadband/tv. Totally upfront and fair

Is that too much ask those selling insurance ?

Corky_Buczek

FOR DUNSTONH

Can you maybe assume that not everyone is as ignorant as you seem to think they are ?

I as well as every one else I know buys insurance on the basis of risk. You decide on what risk you are comfortable with. What you are prepared to carry.

I wasn't given that choice. It is my decision to decide if the redundancy cover of my employer is worth the paper it was written on. AT the time of the policy it certainly was. I ended up paying for something that was grossly expensive and covered me in reality for very little. And I have gone to the Ombudsman with a claim giving what evidence I can - not merely just basing it on my word as you initially seemed to think.

Will I prove to be successful ? Probably not. But do I still have right to be angry at the policy that I was "sold". As far as I'm concerned I most certainly do.

magpiecottage

Corky_Buczek wrote: »

k
You say that on one hand my employer's redundancy scheme could fall apart but if it doesn't (and it hasn't) any pay-out would be effected.

I said nothing about what would be effected. However, if you got a redundancy payment, your PPI payment would not be affected.

You seem to be arguing that employer's promises aren't worth a docking .

What I am saying is that you cannot rely on them unless they are actually a contractual right. I have never seen an assertion that a redundancy payment was a contractual right ever proven to be. They are only ever expressions of policy. They can be changed - and if your employer goes bust then they will be.

[quoteHad the facts of this policy been pointed to m as well as the fact that it was NOT mandatory, I wouldn't have taken it out. I wonder who in their right mind would ?[/QUOTE]Who in their right mind would take the policy out without first checking what they were buying?

dunstonh

FOR DUNSTONH

Can you maybe assume that not everyone is as ignorant as you seem to think they are ?

Can only go on what you have posted here. So, you may wish to change the tone of your posting.

I as well as every one else I know buys insurance on the basis of risk. You decide on what risk you are comfortable with. What you are prepared to carry.

So, why are you all your arguments saying the opposite to what you say you know?

I wasn't given that choice. It is my decision to decide if the redundancy cover of my employer is worth the paper it was written on.

You were given a choice. You say no. If you feel it is not worth it then you do not buy it.

And I have gone to the Ombudsman with a claim giving what evidence I can - not merely just basing it on my word as you initially seemed to think.

And what evidence was that as the FOS don't appear to consider it evidence.

Corky_Buczek

FOR DUNSONH

If you don't like my tone. then don't reply. Yours isn't appreciated either. You know nothing about me. You haven't seen the case file, yet you sit in smug judgement.

Clearly I was naive sat the time to believe that what I was paying in PPI insurance was mandatory. Had the likes of MSE been around at the time I I would have known better but I didn't. I paid a way over the top price for very little cover. A cover that was never properly explained and which when put in front of me earlier in a written from by the same company, I had declined despite my own financial circumstances being in a poorer state at that point.

Remember I didn't contact HBOS for PPI cover. I was looking to transfer debt from another credit card.


.

Corky_Buczek

Who in their right mind would take the policy out without first checking what they were buying?

Maybe someone who was looking for a credit card and NOT to buy PPI Insurance ?