e-mail Paul Lewis on paul@paullewis.co.uk
CPP compensation
If you bought card or identity insurance from a firm called CPP you may be
due compensation. Seven million people bought this cover and most did so after
getting a new debit or credit card with a sticker on it inviting them to call a
number to ‘activate’ or confirm receipt of the card. In fact there was no
activation or confirmation needed. It was simply a way to get them to call a
sales agent for CPP who tried to sell them insurance which, they were told, paid
out if a card was lost or an identity stolen. In fact the insurance was largely
useless (the card provider reimburses customers for any fraud) and was
systematically mis-sold by CPP agents.
The firm was fined £10.5 million by the Financial Services Authority in November 2012 for mis-selling and a variety of breaches of the rules and was banned from selling the insurance to new customers. Anyone who bought the insurance direct from CPP could claim compensation then (see Saga January 2013). But 95% of the sales were made to customers deceived by the sticker on their new or replacement cards who called CPP and were mis-sold the insurance then. It took nine months for the new regulator, the Financial Conduct Authority, to force the banks and card providers to pay compensation even though they made big profits by channelling customers to be mis-sold. The total paid out could be as much as £1.3 billion.
If you bought or renewed a policy at any time from 14 January 2005 (when insurance was first regulated by the Financial Services Authority) you should have been written to already. But if you have moved house CPP may not have your address so you should update your details at www.cppredressscheme.co.uk [NB Ed it needs the www] or call 08000 83 43 93. If you were mis-sold – and most were – the redress scheme will refund all your contributions from 14 January 2005 plus interest at 8% - less any claim paid out. Premiums paid before 14 January 2005 will be harder to get back. Claim from CPP and if refused go to the Financial Ombudsman.
Free travel over 60
In most of England you have to be women’s state pension age – currently
about 61 years and 9 months – to get a free travel pass which works on local
buses anywhere in England. But in some places in England you can still get free
local travel from the age of 60. If you live in one of the 32 London Boroughs
you can get free travel in London on buses, trams, the underground, and some
local trains from your 60th birthday using the 60+ Oyster Card. This
does not give you access to free travel on local buses anywhere else – so once
you reach women’s state pension age you should convert it to a full Freedom Pass
which you can use on buses anywhere in England. More at
www.londoncouncils.gov.uk/services/freedompass
If you live in Liverpool or the four other Metropolitan boroughs in Merseyside then the Merseytravel pass starts at 60 and gives free travel on buses, local trains and ferries. At women’s state pension age the pass will be converted to one you can also use on buses anywhere in England. More at www.merseytravel.gov.uk
People who live in Scotland, Wales, or Northern Ireland can get free travel on buses and some trains and other services from the age of 60. Passes issued in once country cannot normally be used outside it. But they may work on some local services across a border.
SCAMWATCH
Sybil, aged 93, had a call in May from a firm in New York about her BT shares.
The caller knew how many she had and asked her to sign a confidentially
agreement which she did. She was then offered £9 each for her 2331 shares
instead of the market price of less than 50p. In fact she was told she would get
£9 for twice as many shares as she owned – a total of nearly £42,000. All she
had to do was send a cheque for a few thousand pounds to get the deal done.
Luckily Sybil asked her family and they advised her against. But, she wrote, “I
am left wondering if I missed out on about £40,000 or have I saved myself
£6000?” Of course, Sybil avoided being conned out of thousands of pounds. Help
stop these crooks preying on the vulnerable by warning older relatives.
Childcare can boost
your pension
If you look after grandchildren or other young relatives at
least once a week you may be able to get National Insurance credits towards your
state pension. The child’s parent must get child benefit for a child under 12
and that parent must work and pay National Insurance on their wages. You must be
under state pension age and spend some time each week of the year looking after
the child. The condition is not very onerous. As long as you give some care each
week – perhaps after or before school, and for some time in the school holidays.
If these conditions are met you can get National Insurance credits for each week you give the care and if you do it every week for a tax year you get a year’s credit. That may be very useful if you have fewer than 35 year’s contributions and so would get a reduced pension if you reach pension age after April 2016 (before that you need only 30 years). The credits are well worth having – buying National Insurance contributions for a year costs more than £700. You don’t have to be a grandparent – the list of eligible relatives is very broad. More at gov.uk and search for ‘Specified Adult Credits’.
Cheaper calls
HMRC has moved away from premium rate lines for customer calls. All should
now use a number beginning 03 which will cost no more than a standard call to
any landline. The Taxes Helpline is now 0300 200 3300.
e-mail Paul Lewis on paul@paullewis.co.uk