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Halifax payment protection cover...hmmm

Guess I'm guilty of not checking my statement as often as I should :(

Anyway I noticed a charge of 78p for payment protection cover for a balance just under 50 quid. I thought this odd as payment protection insurance typically is around 70 to 80p per 100 pounds, and so the premium charged on this occasion was over twice as much as what would normally be expected.

Anyway I rung up Halifax and the guy I spoke to didn't seem at all surprised at my query :) and explained that the insurance company in question rounds up the balance to the nearest hundred pounds - so for any balance under 100 quid the charge would be 78p. Similarly balances over 100 quid would be rounded up to the nearest hundred for purposes of calculating the premium.

I promptly cancelled the insurance - I always pay my balance in full anyway. Yes it is not a lot of money involved but it is the principle that matters, and extrapolated over a few hundred thousand accounts - it is surely a nice little earner for the insurance company concerned.

I guess I'm becoming a skinflint in my old age. LOL!

Reply to
Trust No One
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When will people learn that the whole point of paymet protection is not to protect your payments but to protect the credit card company from losing out money and making even more money from you, especially if your a person who pays off their balance every month.

Reply to
D.A.L.

I always refuse such 'payment protection' and 'card protection' policies. I think they're just in the same area as the 'additional warranties' you can buy with electrical equipment. They're just a way for the card company to make more money from you.

Reply to
usenet

Same here. If you need protection then it would seem sensible to cover a certain amount rather than a particular product. There's loads of accident, sickness, unemployment policies out there which are, no doubt, better value.

Daytona

Reply to
Daytona

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