Payment Protection Insurance or a’Debt Freeze’ product?

legal updates

As with any potential claims for mis-selling, if you are involved with such products, ensure you are meticulous with your records

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The Financial Ombudsman Service (FOS) has recently brought to light the next generation of financial product misselling in the form of ‘debt freeze’ plans.  These, when activated e.g. due to unemployment, ill health etc, freeze the internet on an account balance and suspect late payment charges.  They are not insurance products.

As with any potential claims for mis-selling, if you are involved with such products, ensure you are meticulous with your records and ensure the consumer is fully aware of the benefits and exclusions.  As with PPI mis-selling the same type of complaints are arising such as;

  • product added without consent
  • product not optional
  • product inappropriate
  • reluctance for company to activate the plan

Don’t get caught out, because there are plenty of business that will seek to take up the customer’s cause.

HowdenCompetitive, comprehensive, quick

One of the largest independent specialist motor trade brokers in the UK. Our extensive history of supplying insurance to the motor trade means we understand your business needs. By partnering with a specialist insurance broker like us, you get exactly what you need to protect your business.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

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Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

The Motor Ombudsman (TMO) – Is it “fit for purpose”?

It seems TMO never sought to ask that basic question and, by the time the penny finally dropped, the contract with the finance company had taken place more than six years ago

Another victory, but the problem has still not gone away!

The FOS confirmed in the article they had not yet published any final decisions on commission-related complaints.

Consumer Duty – all about good outcomes

The FCA’s website has plenty of information to help firms and they have been discussing the Consumer Duty on their Inside FCA podcasts.

Times of economic hardship lead to more complaints

When every penny counts, customers are more inclined to complain if they think they might get something for nothing.

Mis-selling finance claims – Ignore at your peril!

Data subject access requests and various letters quoting CONC and the Consumer Credit Act are being received requesting lots of documentation to be provided.

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