Credit Protection added without knowledge

[mollymoo43]

Has anyone out there had credit protection added to a credit agreement without their knowledge & against express choice made at point of sale? I bought a laptop almost 3 years ago ( from a well known retailer). I took out a credit agreement at the time which was run by a well known bank (possibly Horrible Finance Company !??). I discovered recently that credit protection had been added to the agreement after I had fought off the salesperson at point of sale. I never take out credit protection ever ! I discovered the error & complained to the bank but they will not accept that this was added by either the saleperson or someone at the bank ( one of whom surely profitted by adding it) against my wishes & without my knowledge. I feel like I am on a loser here but I would be interested to know how widespread this type of error is.

[Oneeyedvic]

Never had this problem myself - but it sometimes is worth getting as it allows a discount to be given on the goods - you can then cancel the protection afterwards.

 

Eg - go into dixons and buy something for �1000.00. Tell salesman you want a deal & will take 5 year protection on product (usual cost �400). Total deal will be for around �1200.00. Pay for the product by card/cash (�800) and the credit protection (�400) on credit. Then cancel the protection. The loan company will cancel it for you and not charge you anymore. Hassle - Yes - Saves �200 - worth it then!

 

Just as a further note - when I was 19, I applied to the bank for a loan. They said I could only have it if I took out personal protection insurance - which I did.

 

This still goes on, and is to boost their figures. This is illegal. I would recommend taking out the loan and then cancelling the protection. If they say you can't (which they may do by phone) - ask them to put it in writing. They will never do this as it would make the agreement unenforceable!

[stoo_pid]

do you not have the original signed copy of the agreement? If you have, that will clearly show that when you signed there was no Credit Protection. Unless it was on there & you didn't spot it, in which case there's nothing you can do (other than try & cancel the remainder of the protection). If you haven't got the original agreement then, again there's very little you can do (you could ask for a copy of the agreement but I'm sure it'll 'suggest' that you did agree to the protection.)

[saffstar]

This happened to a mate of mine.  He rang the company and asked them to produce a piece of paper that he'd signed saying he wanted payment protection.  Needless to say, they coughed and spluttered a bit and then gave him his money back. 

[mollymoo43]

Yes I do have the original agreement (sent after the event) and there is a big bold black cross in a box at the top. It turns out that this cross denotes a yes to credit protection. When I was in the store I had to fight the salesman off vigourously ( I know they get commission on insurance sold). I recall signing the paperwork in store without credit protection but clearly when the paperwork arived later I did not pay enough attention to the big black cross ( which I assumed was a NO). I know that because I allowed the Cross to mislead me I am partly responsible & may have to chalk it down to experience eventually & scrutinise paperwork more effectively. However I am concerned that this can be added after the fact. Interestingly I went with my son to witness him buying his first PC himself,(from same retailer) a month or so after I bought my laptop. I remembered recently that he had taken finance too. When he bought it both I & his Dad were with him for support. He refused credit protection on our advice but ( and we are searching for his paperwork now) it seems that the exact same thing has happened to him ! Regardless of whether the paperwork that arrives is not scrupulously scrutinised it seems that this may be more widespread than I had thought (certainly at the store we bought from). Needless to say when his paperwork turns up we will pursue that too. Thanks for answers.

[mollymoo43]

Oneeyedvic - I am not talking about insurance here. We took out insurance on the product. What I am referring to is payment protection for the monthly payments.

[Oneeyedvic]

Okay, under the consumer credit act (1974) payment protection insurance is purely voluntary - a company can not force you to take it. Your son can ask for it to be cancelled. Hoever, under the Act, the supplier have no obligation to refund you any amount (future or paid).

In practice, pretty much every commpany will refund you the amount if you cancel it.

 

With regard your agreement, you should have been given a copy of the agreement which you signed at the event as well as another copy after the event. If these are different you obviously have a case. If you did not get a copy at the time this would be impossible to prove one way or the other.

 

You can telephone the Office of Fair Trading and make a complaint - to offer credit you require a Consumer credit licence and the OFT decide if a company is worth it.

 

Even if nothing can happen now, it is worth contacting them and your local trading standards. Other people may also be complaining and it is more likely they will prosecute when there are more tahn one person complaining.