Monument/Providian Payment Break Plan

[cymruambyth]

Does anyone know if the Provident/Monument 'Payment Break Plan' is classed as PPI?
Thank you

[Paul210]

Re: Monument/Providian Payment Break Plan

need to see terms to be 100% sure with specific lenders but payment break plan is not usually insurance, is often used by sub-prime cards (vanquis etc). any chance you could post up?

usually set up as follows:
you make monthly payment of wither set amoutn or % of balance, this money goes into a pot, after paying for a defined period of time (ususally 12 months) you are allowed to take 1 or 2 month payment break and the money in the pot is used to make the minimum payment. you don not need to proove loss of income to claim and cam opt to take at any time once met the basic qualifying criteria.

Is more of a deposit scheme than insurance, as far as i'm aware isnt covered by ICOB rules although if lender is FSA authorised then the principles would still apply.

[cymruambyth]

Re: Monument/Providian Payment Break Plan

This was issued after a phone call in 2001/2002. I have never received any documents. It covered sickness.

[di30]

Re: Monument/Providian Payment Break Plan

Glad you confirmed this Paul, someone was asking my about this a few days ago and I did not know for sure, so thanks for that.

Is it reclaimable though do you know? (such as if you did not want it, but they added it anyway), just a though, thank you.

[Paul210]

Re: Monument/Providian Payment Break Plan

Glad you confirmed this Paul, someone was asking my about this a few days ago and I did not know for sure, so thanks for that.

Is it reclaimable though do you know? (such as if you did not want it, but they added it anyway), just a though, thank you.

I've never heard of an instance of it being reclaimed, it certainly wouldnt fall under ICOB rules if not insurance although as I said, whether you could claim breach of principles (TCF) for not providing paperwork, pressured sale etc I dont know. I guess it might be worth trying a complaint to lender then submitting to FOS on a test basis, may well set a precedent for others who are unsure as there will undoubtably be other people out there (and indeed probably a few who use this forum) who have been sold the product.

[cymruambyth]

Re: Monument/Providian Payment Break Plan

Hi I have just found the 'document' a leaflet folded in 3 that was accepted by the court as being attached to the reply form that constituted an enforcable CCA (do I sound bitter and twisted??).

It states
'The payment Break Plan is optional and is not insurance. You will qualify to enrol in the Plan if you are a UK resident who is either employed, self-employed, retired or permanently disabled.'

Do I need to post more or is this a lost cause?

My other question is, they carried on taking money for this after they had suspended the account and all credit facilities.

Thank you
Cy

[Paul210]

Re: Monument/Providian Payment Break Plan

As confirmed its not insurance then definately cannot make a standard claim for breach of ICOB's, could try for breach of principles but case is weakened as a court has already ruled that a copy of the terms were provided to you within the cancelation period, therefore the main argument I would have suggested using (non disclosure therefore breach of TCF) goes out of the window.

With regard to the payments being taken, they can do this whilst the account is 'frozen' due to over limit/non payment as the card can be reactivated by you complying with the terms i.e. catching up the payments, they cannot however apply any charges to the account after issuing a formal default notice so if they added after this then you may have grounds to challenge the charges there.