Free PPI

petejsouthern

Hi All,
I have found two policies I submitted through Resolver to Nationwide/Portman and Lloyds Red Star for Buildings & Contents Insurance and Car Insurance. Both providers said that PPI was given 'free' within the Policy. I have not known any Insurance Companies giving anything 'free', obviously the PPI costs are 'hidden' within the Policy. My question is, are they able to do this to avoid mis-selling PPI? Both Companies stopped providing 'free' PPI around 2008, coincidentally when mis-selling was becoming an issue.
regards Peter

[Deleted User]

There's no mis-selling as there was no paying.

And even if you could argue that it was paid for within the product, that simply means it was a fundamental feature of the overall product, so couldn't be mis sold.

It's not coincidental that they stopped selling PPI when mis selling became an issue. That's what happened to the PPI market.

SonOf

I have not known any Insurance Companies giving anything 'free', obviously the PPI costs are 'hidden' within the Policy.

Your assumption is wrong on both counts.

Both Companies stopped providing 'free' PPI around 2008, coincidentally when mis-selling was becoming an issue.

Irrelevant. Whilst you can still buy PPI today, the banks universally pulled out in that period.

petejsouthern

Thanks 'SonOf', whilst I understand your reasoning and your defence of the Insurance Companies, if they were all 'whiter than white' mis-selling of PPI would never have occurred in the first place!

[Deleted User]

petejsouthern wrote: »

whilst I understand your reasoning and your defence of the Insurance Companies, if they were all 'whiter than white' mis-selling of PPI would never have occurred in the first place!

There is no "defence" in the responses you've so far received, just the blunt truth I'm afraid.

PPI was never "hidden", that's a myth sponsored by Claim Companies.

If the PPI was offered to you for free then you simply paid no more than you would have done if PPI was not offered.
This is not at all what the PPI mis-selling scandal was about.

Some people were sold insurance that they could never claim on, others were sold insurance front loaded onto loans to attract extra interest. This was the PPI mis-selling scandal; not "hidden" insurance, mis-sold insurance.

Nearlyold

petejsouthern wrote: »

Hi All,
I have found two policies I submitted through Resolver to Nationwide/Portman and Lloyds Red Star for Buildings & Contents Insurance and Car Insurance. Both providers said that PPI was given 'free' within the Policy. I have not known any Insurance Companies giving anything 'free', obviously the PPI costs are 'hidden' within the Policy. My question is, are they able to do this to avoid mis-selling PPI? Both Companies stopped providing 'free' PPI around 2008, coincidentally when mis-selling was becoming an issue.
regards Peter

Why would a Building and Contents policy or Car insurance policy have PPI as part of the policy - Free or Otherwise??

SonOf

Nearlyold wrote: »

Why would a Building and Contents policy or Car insurance policy have PPI as part of the policy - Free or Otherwise??

I have never heard of it on house insurance. Someone once said that their car insurance had it but it must be very niche. Mortgage obviously had it (and you can still buy it today) and Nationwide did offer free MPPI for a number of years.

petejsouthern

Because Car Insurance used to be in the high hundreds (and still is for some) the Insurance premium was paid for by loans which were paid with monthly premiums, so was Buildings Insurance sometimes using a 'draw down' loan.

SonOf

Because Car Insurance used to be in the high hundreds (and still is for some) the Insurance premium was paid for by loans which were paid with monthly premiums,

The move to treat regular premium car insurance as a loan was a change under the consumer credit act after the issues of PPI were known about. So, most car insurance policies never offered it. It has been seen but its very very rare.

so was Buildings Insurance sometimes using a 'draw down' loan.

I dont recall anyone ever posting that their home insurance had PPI on it and have never seen any reference to it elsewhere.

petejsouthern

Try Nationwide and Premium Funding & Direct Choice both underwritten by Lloyds Equity Red Star