As soon as I can find where I put the FOS letter I will post the response here with the details.

Hi I am in the process of waiting a decision from PayPlan about my cover my payments and cover my life schemes I entered into during my payplan agreement.

Do you have the ref from FOS for the successful claim against them in case they try to decline my claim please?

Thanks

Following a recent success with the Financial Ombudsman, a case where PayPlan charged a CAGger over £22 per month to cover their payments in the event of sickness or loss of job was judged to be an insurance product and could be recovered if it was mis-sold.

 

This scheme was called, "Cover My Payments" This 'scheme' was withdrawn in 2014.

 

 

Please note that PayPlan is the trading name of Totemic Limited.

 

This was marketed as a membership scheme however, Payplan charged a variable amount per month based on the payments made. A membership scheme is where a fixed amount is charged.

 

Payplan did a similar scheme called 'Cover My Life' which was, in my opinion, a membership scheme as they charged £60 per year irrespective of how much was paid.

 

I was concerned that this scheme was being mis-sold so I emailed PayPlan:

This is the response I received:

Since the win listed above, I have checked the Financial Ombudsman website and found another 4 cases. These are the reference numbers:

 

DRN 7453238

DRN 5870785

DRN 5970606

DRN 3306582 ( this one is part of a different complaint)

 

So, on one hand we have PayPlan saying it is a membership scheme but the Financial Ombudsman are saying it is an insurance product.

 

If any of you have been a member of Cover My Payments via Payplan, my suggestion is that you query as to whether it was a suitable product for you and if not, reclaim it. It is likely PayPlan will turn you down stating that it is a membership scheme but as I hope I have proved, this is not the case.

Hi SilverFox

I have searched the above ref numbers on the FOS site for evidence but they dont show up at all? Ive managed to find the one DRN5870785 which proves the FOS investigated the payments as an insurance policy but wanted some evidence that they found in favour of people claiming against PayPlan.

Thanks

Hi dx100uk

Thanks for the link, I have searched the ref numbers on the FOS site but they dont come back with any results?

Hi

I can't remember what details I put in the search boxes as it's been a couple of months. I will continue to search for them today but for now, IF Cover My Payments were NOT an insurance, the FOS would not become involved. Cover My Life was a membership scheme as it charged a fixed fee but as Cover My Payments charged a variable amount, it is this that made it insurance and that the FOS can be involved.

The one case you have found states that CMP is an ancillary scheme seperate from the main DMP so any payments made to it would never go to your creditors. The Payment you made for the insurance was split between Trent Services and PayPlan.

Those case listed are wins for the consumer. Hopefully I will be able to find the others.

That would be great thanks, they have already agreed the cover my life was mis sold as I didn't sign any paperwork for it. Hoping they will just repay it but want some evidence if I do need to go to FOS.

Is the 8% interest on repayment a standard thing as see that seems to be on most repayments?

Thanks

Lee

If you go to the FOS decisions page and type in Totemic into the business name this brings up a few results that includes

DRN 5970606

DRN 7453238

and the one you mentioned, Add to the search the dates 1/1/2015

As DRN 3306582 was part of a different complaint, I can't quite find it as yet.

8% is statutory interest applied by the courts for other money claims so it is what the FOS use when calculating redress

Not sure if this works

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That'd be a no

What you do is when you use the search box, copy the reference number and paste it into the top search box BUT remove the space between DRN and the number. This worked for me

I have replied on the other thread. Hopefully the OP will return to give us the fine details of the decision

Thats great thanks

Lee

Hi guys

After some help.

I have heard back from PayPlan about the cover my life and cover my payments schemes.

They have agreed to refund the cover my life scheme as they had no record I even signed up to it

but are not refunding the cover my payments as they say I was given all the information and 14 days to cancel it when I took it out.

My argument was that I was not disputing taking it out but the fact they told me I needed to have it in order to get my creditors to agree to a debt mangement plan.

I have put it on to the FOS who have written back and said that they cannot investigate the PPI policy (I never said it was a PPI policy but one in disguise!) as it was sold to me before the date when 'all this business became regulated'.

I signed for the policy in Feb 2007 that doesnt seem like a huge amount of time to me.

Any advice on where I go from here?

I am still annoyed about paying into something I didnt need, never used and made no impact on reducing my debt.

Thanks

Lee

that date is typically quotes as 2005 before that date they were not regulated.

so what special about this and 200&?

puzzled

Hi

I rang them up as I was confused about it being rejected. They said Payplan were only regulated by them last year?

They were very helpful tho and eventually agreed it was not sold initially as PPI but a membership scheme that is similar to PPI.

They are investing it and are requesting bits from Payplan so will have to sit tight and wait for the outcome!

Thanks

Lee

that date is typically quotes as 2005 before that date they were not regulated.

 

 

so what special about this and 200&?

puzzled

Hi have you heard anything back yet Lee? Myself and my husband were with Payplan from June 2008 until April 2015 When we left payplan to do a DMP on our own because communication with payplan was shocking. With payments to them going up and down yearly with our wages changing we paid anything from £15 to £33 a month cover my payments and a fiver each for cover my life.. thanks Debbie