Matthew Green thought he was being a responsible citizen when he agreed to pay a little bit extra for payment protection insurance for a consolidation loan.
If he became ill or lost his job, the insurance would after all cover his loan repayments.
But years later a trip to an independent financial adviser revealed that he had paid an extra £12,000 for an insurance policy that was worthless. As a person who took pills for high cholesterol, Matthew would never be able to eligible to collect on the policy if he became ill. As these conditions were not explained to him at the time, his original loan provider has since given him a full refund.
This programme follows the story of Matthew and two other people who have been reimbursed by their lenders.
And according to Tonight money-saving expert Martin Lewis, millions of others could also be in line for a cash windfall.
The FSA recently said it would be cracking down on lenders with bigger fines and more enforcement action after a “a mystery shopping exercise” with 150 firms showed that there has been little or no progress on telling customers what the insurance will cost or what it will actually cover or exclude.
Martin has already helped 50,000 citizens apply for a refund on the basis of questionable selling practices. In this programme, he gives a lesson to ten eligible consumers on how to fight back against dubious lending practices.
Friday 26 October 2007 8:00pm - 8:30pm on ITV1.
One Comment »
a few years ago i took out a consolidation loan with first plus the loan was for £15000 or £16000. after a few payments i paid the loan off realising i’d made a mistake taking it out in the first place it was better for me to add the money i needed to consolidate to my mortgage.
only i had to pay back £4000 more than i borrowed this i was told was because first plus paid the insurance for my loan with them up-front all at once now i owed them the loan and the insurance money. i paid this off as i had no choice or did i ??.
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