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; request a free guide on NISAs from Hargreaves Lansdown

Sport
Club legend Paul Scholes is scared United could disappear into 'the wilderness'
football
News
A model of a Neanderthal man on display at the National Museum of Prehistory in Dordogne, France
science
News
Dawkins: 'There’s a very interesting reason why a prince could not turn into a frog – it's statistically too improbable'
newsThat's Richard Dawkins on babies with Down Syndrome
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
PROMOTED VIDEO
Travel
Dinosaurs Unleashed at the Eden Project
travel
Arts and Entertainment
music
Sport
football
Life and Style
This month marks the 20th anniversary of the first online sale
techDespite a host of other online auction sites and fierce competition from Amazon, eBay is still the most popular e-commerce site in the UK
News
i100
Finacial products from our partners
Property search
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

    Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

    £45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

    Application Support Engineer (C++, .NET, VB, Perl, Bash, SQL)

    Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...

    AIFMD Business Analyst / Consultant - Investment Management

    £450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...

    Business Analyst Solvency II SME (Pillar 1, 2 & 3) Insurance

    £450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...

    Day In a Page

    Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

    We know all too much about the cruelty of Isis – but all too little about who they are

    Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
    Neanderthals lived alongside humans for centuries, latest study shows

    Final resting place of our Neanderthal neighbours revealed

    Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
    Scottish independence: The new Scots who hold fate of the UK in their hands

    The new Scots who hold fate of the UK in their hands

    Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
    Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

    Blight club: Britain's ugliest buildings

    Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
    eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

    eBay's enduring appeal

    The online auction site is still the UK's most popular e-commerce site
    Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

    'Lack of ethnic minority and black faces on TV is weird'

    Culture Minister Ed Vaizey calls for immediate action to address the problem
    Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

    Magic circles: Artist Olafur Eliasson

    Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
    Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

    Josephine Dickinson: 'How I discovered a new world of sound'

    After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
    Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

    Greggs gives lesson in crisis management

    After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
    Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

    Matthew McConaughey sings the praises of bumbags

    Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
    7 best quadcopters and drones

    Flying fun: 7 best quadcopters and drones

    From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
    Joey Barton: ‘I’ve been guilty of getting a bit irate’

    Joey Barton: ‘I’ve been guilty of getting a bit irate’

    The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
    Andy Murray: I quit while I’m ahead too often

    Andy Murray: I quit while I’m ahead too often

    British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
    Ferguson: In the heartlands of America, a descent into madness

    A descent into madness in America's heartlands

    David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
    BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

    BBC faces corruption allegation over its Sir Cliff police raid coverage

    Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home