Questions of Cash: Now I know two sets of compensation are on the cards from my CPP cover

 

Q. I bought credit card protection insurance from CPP about 20 years ago, but I cannot remember the details, including whether the insurance was sold directly by CPP or NatWest, my credit card issuer. I purchased the insurance as it provided cover for unauthorised transactions on my card and did not realise the bank provided this cover. Each year this insurance has been renewed automatically by CPP. I have now been notified by CPP that I may be entitled to compensation for mis-selling. I have been sent a claim form and told that if I qualify premiums since 2005 will be refunded. I do not understand why premiums before this are not taken into account. If I sign the claim form, it states I will have no further claim on CPP. ST, Essex.

A. We contacted CPP, which explained that under the Scheme of Arrangement agreed with the Financial Conduct Authority regulator the scheme only covers mis-selling since 14 January 2005. You can still claim for mis-selling before this date but you must go directly to the seller of the product. CPP confirmed you had not been sold its insurance by NatWest and requested you contact it direct to establish who had sold the product prior to 2005. You subsequently told us it had been sold by the former Abbey National Building Society, since acquired by Santander. We contacted Santander, which has sent you a claim form. A spokeswoman said: "[The reader] should complete and return the claim form she has received for her post-2005 CPP complaint and we will investigate her pre-2005 claim. Signing the CPP claim form will not affect her claim with us."

DRIVEN TO DISTRACTION TRYING TO INSURE A NEW CAR

Q. I am in the process of changing my car. I am insured through the Post Office with an annual premium of £155.44. My policy expires in October. I phoned the Post Office to change the details of my cover to my new car, which is in a lower insurance group. I was quoted £122.52 to pay extra, including a £20 administration fee. I asked if I cancelled the policy how much I would be reimbursed – the answer was a £23.36 refund, due to the £20 administration fee and £55 cancellation fee. How can they charge two fees? I asked for an annual quote for my new car with the same cover, but in a lower insurance group. The quote was £284, a lot higher than the £155.44 for my old car. I obtained a quote from the Post Office website – changing my name as the site would not quote me first time. It came up with £184 – £100 cheaper. RA, Lincolnshire.

A. You have come up against what might be termed the "insurer's disloyalty charge" – existing customers are charged more than new customers. A spokeswoman for the Post Office put it in different words. "An online quote will attract an introductory discount for new customers, common practice among insurers," she explained. She added: "There are a number of factors which affect the premium following a change of car, including make, model, value, engine size etc. We would like to retrieve [the reader's] quote and discuss it with her, but as she has entered a different name, we are unable to do an accurate comparison. We have listened to the calls with [the reader] and at no point did we advise she would incur two administration fees. We informed her the cancellation fee would be offset against a pro rata refund, representing the unused term of her previous policy and that we would not add any additional fees or charges." Your experience illustrates the importance of conducting price comparison checks annually with an online comparison site, a local insurance broker and a direct insurer.

MY BRUSH WITH THE LAW AFTER I RENEWED POLICY ONLINE

Q. I had a car insurance policy with One Call, due for renewal in February. I used an online price comparison site to check premium costs. The cheapest on offer was from One Call at £141.99, approximately £30 cheaper than the renewal quote given by them. So I paid with a credit card. I received my certificate of insurance through the post a day or two later. Then I received a letter telling me I had not paid a £25 renewal fee, but this was not mentioned when I took the insurance out online. I queried this with One Call's customer enquiries, pointing out this was not mentioned when I took out the policy. I reluctantly paid, and then received another letter to say my insurance had been cancelled and I would be entered on the police register as having no insurance. I again contacted One Call, who confirmed my insurance was in place. RN, Devon.

A. One Call has not responded to our inquiries, but it has contacted you and refunded the £25. Your story underlines what can be a disadvantage of renewing an insurance policy with your existing insurer – even if you do so via an online price comparison site.

Questions of cash cannot give individual advice. But we'll do our best to help if you have a financial dilemma. Email us at: questionsofcash@independent.co.uk

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Ashdown Group: Trainee Consultant - Surrey / South West London

    £22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

    Ashdown Group: Trainee Consultant - Surrey/ South West London

    £22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

    Recruitment Genius: Client Services Assistant

    £18000 - £20000 per annum: Recruitment Genius: A Client Services Assistant is ...

    Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

    £25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

    Day In a Page

    No postcode? No vote

    Floating voters

    How living on a houseboat meant I didn't officially 'exist'
    Louis Theroux's affable Englishman routine begins to wear thin

    By Reason of Insanity

    Louis Theroux's affable Englishman routine begins to wear thin
    Power dressing is back – but no shoulderpads!

    Power dressing is back

    But banish all thoughts of Eighties shoulderpads
    Spanish stone-age cave paintings 'under threat' after being re-opened to the public

    Spanish stone-age cave paintings in Altamira 'under threat'

    Caves were re-opened to the public
    'I was the bookies’ favourite to be first to leave the Cabinet'

    Vince Cable interview

    'I was the bookies’ favourite to be first to leave the Cabinet'
    Election 2015: How many of the Government's coalition agreement promises have been kept?

    Promises, promises

    But how many coalition agreement pledges have been kept?
    The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

    The death of a Gaza fisherman

    He built his own reef, and was fatally shot there by an Israeli gunboat
    Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

    Saudi airstrikes are fuelling the Gulf's fire

    Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
    Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

    The only direction Zayn could go

    We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
    Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

    Spells like teen spirit

    A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
    Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

    If fashion is a cycle, this young man knows just how to ride it

    British designer Jonathan Anderson is putting his stamp on venerable house Loewe
    Number plates scheme could provide a licence to offend in the land of the free

    Licence to offend in the land of the free

    Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
    From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

    From farm to fork in Cornwall

    One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
    Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

    Robert Parker interview

    The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
    Don't believe the stereotype - or should you?

    Don't believe the stereotype - or should you?

    We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor