payment protection insurance

[ajmmac]

please bear with me--this might be long--until dec i was self employed--did not have a business as such--just freelance work as computer engineer--work died off so had to look for something else--i did not sign on at the jobcentre--thru savings i was able to keep up my payments on my credit card bill and on a bank loan--in june this year i managed to get p-t seasonal work which ended at end of oct--i signed on at the jobcentre and applied to my credit card co. to claim on my payment protection insurance to have my monthly payments covered--they told me to contact the insurance co. and gave me the details--i did this and they say that since i was self employed i am not covered except for business debts as a result of my business folding--thing is i had no business thru which i could have accrued debts--the card was a personal card not tied to a business--when i said i had also worked for 5 months b4 signing on they said i am still not covered since the job was temporary--i have been paying the premium for over 3 yrs and now when i need it they will not pay out--none of this was mentioned when i took out the credit card and i do not remember receiving any terms and conditions statement--i certainly don't have a copy and it is the sort of document i would have kept--i fear the same is about to happen with pp ins on my bank loan--there is no way i can make these payments and that is why i paid pp ins--thanks to anyone who can advise me what to do next--any way i can challenge this situation?--the bank loan was not secured on my home but i may have to sell up to pay it and render myself homeless--kinda desperate now--thanks

[ajmmac]

should have said until dec 2006

[pug100]

Hi,
sorry to hear about your situation and hope you get it sorted asap. It seems you've fallen for the PPI hype and moreover failed to read the small print in the agreement which you signed when taking out the card. Companys selling this kind of 'protection' often come under scrutiny for their underhand tactics in getting you to sign up or expoit a loophole as you have found out. Check out the link to Money Saving Expert, Martin has a lot of advice on PPI.
In this case why not contact your card issuer and explain the probelms you're having. They may allow you a period of grace to get yourself sorted out finacially. In the meantime do not spend any more on the card as the interest rates charged are about 3-4 times as much as a loan. ( credit cards charge between 22% and 30% p.a. a low cost loan would be around 7% p.a. )
These websites offer good financial advice and tips on managing your money. Good luck.


http://www.moneysavingexpert.com/


http://www.fool.co.uk/

[ajmmac]

thank you pug100--you are right about reading small print etc--sadly, like too many people, i took it for granted thinks were ok--anyway i don't remember seeing any terms and conditions at the time but still no excuse--i will follow up on the links you gave and see how it goes--cheers

[EverClean]

Speak to the providers. Try to resolve the situation. If you can't find a resolution then try the ombudsman. From memory I think that the provider has to prove that you needed the insurance and that you had all the consequences explained to you. It is not your responsibility to prove that you weren't. So in relation to the terms and conditions, they are a little irrelevant.

The company should have taken basic details from you as part of the application - including employment status. If they recrded you as self-employed then they have a difficuklt in selling you "unemployment cover" as the circumstances under which you are protected are complex and the likelihood of you receiving a payout is negligible.

Good luck.

[ajmmac]

thanks everclean--i am currently negotiating with the providers--with luck something will be worked out--cheers