The worst rip-offs in Britain
LoveWhat do you think are the worst rip-offs in Britain?
Personally, the one that hate the most is ID theft protection insurance.
Every time I call up my bank, Barclays, they try to sell me this rip-off insurance. Most people think that by taking out this insurance, their money will be safe if someone steals their identity. In fact, ID theft protection doesn’t pay out compensation for any fraud committed. It only covers things like loss of earnings – so if you are unable to work because of the ID theft (which would be quite rare, I imagine) then you will get a capped amount of income, usually a maximum of £24,000 a year. You’ll also get cover for any legal fees resulting from fraud cases.
But you won’t actually get any money back that’s been stolen from you. That’s up to the banks to do, and under the Banking Code, they are obliged to do so, regardless of whether you have ID theft protection or not. Of course, the banks can try to argue that if you didn’t keep your pin safe, you’re not entitled to compensation. But if they refuse, your ID theft protection insurance still won’t cover you.
If you’re worried about ID theft the cheapest and simplest thing to do is to take out protection registration directly from CIFAS, the UK’s Fraud Protection Service ( a not-for-profit body). It only costs £14.10 for a year’s cover and it means that anyone applying for credit in your name (including you, yourself) will have to undergo extra identity checks before credit can be granted. So it will slow down any credit applications, but it will ensure you are 100% safe.
By contrast, ID theft protection insurance typically costs around £80 a year. What a rip-off!
That’s my opinion anyway – I think it’s one of the worst rip-offs in Britain. What do you think? What are your worst rip-offs?
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