Jump to content

You can now change your notification sounds by going to this link https://www.consumeractiongroup.co.uk/index.php?/&app=soundboard&module=soundboard&controller=managesounds

 

You can find a library of free notification sounds in several places on the Internet. Here's one which has a very large selection https://notificationsounds.com/notification-sounds

 

 

BankFodder BankFodder

 

BankFodder BankFodder


silverfox1961

PayPlan - Cover My Payments

style="text-align:center;"> Please note that this topic has not had any new posts for the last 997 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

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This scheme was called, "Cover My Payments" This 'scheme' was withdrawn in 2014.

The thread in question is HERE

 

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:

I am a member of a respected consumer forum that often advises people to seek help via PayPlan or Stepchange however something has appeared on the forum that has left me feeling at odds with that advice.

Cover My Payments.

 

I am unsure as to whether this product has been withdrawn or not but in the literature you state that it is a membership scheme and not an insurance product. This is at odds to me and before I contact the Financial Ombudsmanlink3.gif to get their input, I would like to offer you the opportunity to state why it is not an insurance product.

 

If it is not an insurance product, how can it pay out when a member loses his (or her) job or becomes ill? If it is not an insurance product, could you explain why Trent Services are being used?

 

Am I right in thinking that membership schemes usually have a fixed monthly fee whereas cover My Payment has a variable amount based on the outstanding debt. This does suggest to me that it is a PPIlink3.gif product dressed up in a fancy name.

Please prove me wrong.

Many thanks

This is the response I received:

Thanks for your mail. Cover my Payments is a product that we used to offer our clients.

It was established as a membership scheme rather than an insurance product and was designed to maintain dmplink3.gif payments in situations where our client suffered an income loss resulting from job loss, sickness or similar.

We were careful to set Cover my Payments up as a membership scheme rather than an insurance product because we believed this would offer better value to our clients.

 

The differences between membership and insurance schemes tend to be quite technical but one difference that was particularly appealing to us was that in a membership scheme claims are paid out on a discretionary rather than contractual basis.

 

It is in the nature of a dmplink3.gif that the odd payment is often missed (typically at Christmas, the start of a new school year etc) and we didn't want this to mean that these almost inevitable hiccups would result in claims being declined. Similarly we didn't want to further compound the disruption caused by a missed payment by collecting arrears of insurance premiums from subsequent payments.

The membership scheme allowed us to overlook these payment inconsistencies when decisioning claims and to avoid the need to ever collect arrears of payments.

In 2014 we decided to withdraw all non-debt related products from our offering and focus exclusively on debt advice and debt solutions (so, for example, we no longer offer to proactively help people find cheaper car/house insurance, utility providers etc).

 

Instead we give generic advice and encourage people to shop around themselves if they wish to change/buy other products. At the time we stopped offering our Cover my Payments scheme we wrote to all clients with the product to remind them of the features of the product and invited them to cancel if they felt the product was no longer suitable.

 

In these cases we also looked into whether the product was ever suitable or of value and, where it wasn't, made a retrospective refund of contributions too.

This was a voluntary exercise which we conducted with input and support from the FCA, for those clients who chose to maintain their membership we also recheck suitability and value at each annual review.

Do let me know if you would like to discuss further - this would probably be easiest by phone

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.


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites

As many people are aware, some insurance companies are reluctant to pay out. This 'product' was run by Trent Services, an insurance company so it got me concerned that PayPlan could offer this as a membership scheme and pay out on a 'discretionary' decision, something that insurance companies never do.

 

My opinion is that this insurance should never have been offered to people in such serious debt that they had to go to PayPlan in the first place.

 

If anyone has had a cover My Payment policy with Payplan, it is worth doing a reclaim. The product is no longer available so there may be a few people out there who did not realise they had this insurance or made a claim and got turned down.


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites

Hi,

 

I was with payplan til April 2016, for 6 years, and was paying this. I need to look out my information but I paid a set monthly amount that increased very slightly each year so I'm not sure if that counts as variable. What I do wonder though is if it was discontinued in 2014, why was I not told and was still paying for another two years!

 

Would someone mind pointing me in the direction of a step by step reclaim please? I'll email them with the polite request first but if this is something I shouldn't have paid then I want it back! :)

 

Thankyou

Share this post


Link to post
Share on other sites

id start a thread in the PPI forum

1st port of call is get all the statements from payplan via an sar.


please don't hit Quote...just type we know what we said earlier..

 

if everyone stopped blindly paying DCA's tomorrow

the biggest financial industry in the UK, DCA;s would collapse overnight.

 

 

Share this post


Link to post
Share on other sites

Thankyou, I'll do it asap. I reclaimed from lloyds successfully many moons ago but my brain seems to have gone to mush.

Share this post


Link to post
Share on other sites

As mentioned in the response from PP, the scheme was withdrawn in 2014 however those that were on it either cancelled or continued. They stated that they contacted all members of the scheme asking if the customer felt it was still for them.

You need to find out if it was 'Cover My Life' or 'Cover My Payments' I ought to mention that if anyone actually made a claim, did they pay out? If they did then getting a refund may be harder as the customer will have benefited from the scheme.

 

Once you have the SAR back, the amount of payments would be shown as well as any increases. I'm surprised the amounts went up each year as it is based on what you owed so if the payments went up, your debt would have done so too??


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites

Sorry, I didn't see this as I started my own thread then was advised that as it was an IVA there was no point in trying.

 

 

Just to answer you though,

I can't remember ever being asked whether I wanted to continue or not,

I was given a list of amounts one for each year of the iva.

..the iva payments increased slightly each year too,

 

 

I think they did explain it at the time but grief really does addle the brain.

.theres alot I don't remember about the first few years!

 

 

To be honest,

I think it was impossible for my (our) debt to rise any more than it was so I feel very lucky to have paid as little as I did and am not going to complain about not being able to reclaim as I thought 😊

 

Thankyou so much for being willing to help though, it's much appreciated.

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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.


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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.


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites

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


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites

Not sure if this works

 

javascript:openPDF('12883');

 

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


If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Share this post


Link to post
Share on other sites

Thats great thanks

Lee

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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

 

 

so what special about this and 200&?

puzzled


please don't hit Quote...just type we know what we said earlier..

 

if everyone stopped blindly paying DCA's tomorrow

the biggest financial industry in the UK, DCA;s would collapse overnight.

 

 

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...