Equipment Insurance Mis-Sold

[TheHangman]

If I had purchased equipment via finance and the finance company insisted that I insured the said equipment and provided the insurance along with the finance, but failed to explain any of the requirements of the insurance, (in regard to maintenance etc) would that insurance constitute mis-sold insurance and would a refund be due? The maintenance in question relates to filtration units with time/use limit but the equipment was rarely used and the equipment supplier was insistent that they supply the replacement units (at an inflated price) on a very regular basis in order to keep my insurance valid, yet I can find no reference in my documents to this point.

[boxtops]

It sounds a bit odd to me, but I'm not familiar with insurance on technical kit. Interested to see what others think.

[factor-fiction]

Were you still happy to make the purchase from them, though? I must admit I have a bit of a blind spot when it comes to this 'mis-selling' issue but I suppose this case has similarities to PPI mis-selling. Why not write and ask- most companies have a process they follow in these cases

[TheHangman]

The company in question will not answer the issue. I am stuck with an insurance that they failed to fully explain, will not honour, but by the terms of the contract I must pay. Now that mis-selling of PPi in in the public domain I wonder if this extends to all insurances in connection with finance? It just seems very unfair that I must insure an item at their insistence but not be able to benefit from that insurance because of a seemingly unwritten clause.

[rojash]

PPI stands for "Payment Protection Insurance", which was to cover the payments in the event of the inability to work.

From your description, what you have insured is equipment itself. It would seem a reasonable requirement that you should insure the equipment until it's paid for.

[TheHangman]

I agree, but surely if having paid for an insurance I should at least have access to it and the company in question should not be able to add clauses to deny access after the contract has been signed, which is what the case appears to be now. I can find no reference in my contract in relation maintenance or the supply of filtration units. This was something sprung on me several months after first signing the contract and never mentioned either verbally or in writing or within the contract. Don't get me wrong, I am not against maintaining the equipment I am only disputing the fact that this clause has seemingly been snuck in the backdoor as an attempt not to have to honour the insurance. That must amount to mis-selling.

[Hymie]

I suggest you place the dispute before the Financial Ombudsman who will give a ruling on your complaint (the service is free).

However you have to have gone through the company's complaints process first – to give them a chance to put things right.

Make sure everything is in writing, so that you can present your case clearly, if necessary to the Ombudsman. Therefore you need to retain copies of any letters you send.

If the company refuses to reply to your letter of complaint, advise them (in writing) if they do not respond within 14 days that you will be asking the Financial Ombudsman to adjudicate the matter.