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Credit Protection added without knowledge
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No best answer has yet been selected by mollymoo43. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Never had this problem myself - but it sometimes is worth getting as it allows a discount to be given on the goods - you can then cancel the protection afterwards.
Eg - go into dixons and buy something for �1000.00. Tell salesman you want a deal & will take 5 year protection on product (usual cost �400). Total deal will be for around �1200.00. Pay for the product by card/cash (�800) and the credit protection (�400) on credit. Then cancel the protection. The loan company will cancel it for you and not charge you anymore. Hassle - Yes - Saves �200 - worth it then!
Just as a further note - when I was 19, I applied to the bank for a loan. They said I could only have it if I took out personal protection insurance - which I did.
This still goes on, and is to boost their figures. This is illegal. I would recommend taking out the loan and then cancelling the protection. If they say you can't (which they may do by phone) - ask them to put it in writing. They will never do this as it would make the agreement unenforceable!
Okay, under the consumer credit act (1974) payment protection insurance is purely voluntary - a company can not force you to take it. Your son can ask for it to be cancelled. Hoever, under the Act, the supplier have no obligation to refund you any amount (future or paid).
In practice, pretty much every commpany will refund you the amount if you cancel it.
With regard your agreement, you should have been given a copy of the agreement which you signed at the event as well as another copy after the event. If these are different you obviously have a case. If you did not get a copy at the time this would be impossible to prove one way or the other.
You can telephone the Office of Fair Trading and make a complaint - to offer credit you require a Consumer credit licence and the OFT decide if a company is worth it.
Even if nothing can happen now, it is worth contacting them and your local trading standards. Other people may also be complaining and it is more likely they will prosecute when there are more tahn one person complaining.
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