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Unwanted Phone Insurance

Hello!

Last week, a friend of mine purchased a new phone on contract. The phone company that she is currently under contract with gave her a phone call offering phone insurance, to which she declined.

One month later, she received her phone bill. She was a little shocked to see that her phone bill was higher than expected just after one month. After going through the statement with a fine tooth comb, she noticed that she had an insurance charge added to her bill, bearing in mind that she had refused to take out insurance on the phone. I proceeded to ask her if she had signed anyting on the contract that may have resulted in extra charges being taken out and she told me she hadn't. She said that she has actually photocopied her completed contract and has made sure that there were no hidden charges stated in the small print.

Since then, she has been calling the phone and insurance company about the insurance claim and they have said they are still sorting out the discrepancy in her contract. Also, they are still charging her for insurance that she does not have on the phone.

I am wondering if this is some sort of scam or is this a mistake by the phone company?

Thanks in advance.

Lindsey

Hi Lindsey

There are a few thousand cases currently being looked into by the financial ombudsman about Payment Protection Insurance or PPI as it is commonly known. This is down to the number of mis-sold policies. They recommend that you firstly get in touch with the company advising them to sort out the issue before you go to the ombudsman. If you have no luck with the company speak to the ombudsman who will be able to advise if they can take on the case.
It may be a genuine mistake by the phone company and if this is the case it should be easily rectified. If you do want further information visit http://www.financial-ombudsman.org.uk
Hope this helps