A frugal life is an easy life!

Thanks to Jo (Curlylox over at chatgames) I put in a claim for some Payment protection insurance on an old loan.
Within 10 days, the Alliance and Leicester have written back, knocking the entire amount off the balance plus 8% interest on all premiums paid to the company.

I had asked for the payment protection insurance to be added, so didn't think it would be refunded, but Jo had another line of attack.

• Was it applied as a lump sum to the loan? - This means that interest is being applied to it at a higher rate! - I wasn't told this
• Are there any fees to pay if you want to end the policy before your loan is paid off? (Especially when it is a seperate installment policy, ie, not added as a lump sum to the loan!) - I wasn't advised there were any fees, I was told I could write to them giving them 30 days notice and my cover would cease - no mention of any "termination fee"
• I stated I felt pressured by the advisor into taking out the policy - they have to prove that I wasn't
• Self employed, retired or already have an illness? - then put this in your claim, chances are that there was no way the policy would ever cover you!
• When selling the policy to myself, it was never stated that other companies also sell payment protection insurance, that I could take out seperately to cover me on the loan.

I am going after some other companies to claim back my payment protection insurance now.
If the companies do not respond within 8 weeks, or they refuse my claim for a full refund, then a letter goes to the financial ombudsman, I'll let them decide.

It is a poor state of affairs when it has come to this though, the onus should be on the companies to sell this insurance in a correct manner, or if they fail to do so, the refund process should be automatic from the companies, instead, the customer has to write letters and issue complaints to get back what they have been mis-sold.