Freelance fleeced of £700 over 'false cover'

A freelance photographer has warned the self-employed community about the perils of taking out expensive payment protection insurance (PPI) that could be unsuitable and leave claimants hundreds of pounds out of pocket.

Nigel Simms, from Essex, learnt the hard way when he took out a £7,500 loan from Lloyds TSB to buy a Harley Davidson motorcycle two years ago.

His loan dictated monthly repayments of around £180 and added £32 for a protection premium, the Financial Mail reports.

The freelance then realised upon talking with friends that his costly cover was unwanted because he would not be able to claim, in the event his work should dry up.

He told the newspaper: “I have since cancelled the PPI, but meanwhile it cost me over £700.

“Yet Lloyds TSB knew my employment history so it should never have sold me cover in the first place.”

The freelance said he cut his losses and opted instead for an income protection policy, costing £30 a month, with the insurance broker, Burgesses.

This covers his loan for the motorcycle and additionally provides a monthly income of £1,000, in the event he cannot find work.

“ I have learned the hard way about taking out PPI,” Simms confessed.

A spokesman for Lloyds said some self-employed customers would be eligible to claims if they could provide evidence of self-employment.



 

13th September 2005

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