Mis sold PPI from company I went Bankrupt with

hannahk81 · 18 May 2013 at 12:47PM

Hi I wondered if anyone can help.
I have had a letter to say I was mis sold PPI from Nationwide. It says the PPI would have protected me if I had to leave a job to become a carer. If I had known this I would have claimed on it. Nationwide withheld this information from me when I went bankrupt.
I'm thinking this could be fraud on Nationwide's part
I'm so annoyed to find this out now, going bankrupt was not an easy decision and it made life very hard.
It's been 6 years now since I was declared bankrupt

Please help

Annisele · 18 May 2013 at 1:00PM

Who was the letter from?

Generally, insurance companies don't have an obligation to tell you you can claim. For example, if your TV is stolen your contents insurer won't know that - it's for you to contact them to make a claim, not for them to contact you.

I'm not clear what you're saying Nationwide has done wrong. Did they tell you that you couldn't claim when you could? If so, that's a claims issue not a mis-sale one.

hannahk81 · 18 May 2013 at 1:52PM

The letter is from nationwide.
They have admitted they may has mis sold me PPI and have given me dates that I paid into it. I'm annoyed with nationwide for not telling me about the payment protection as I could have claimed on the insurance when I left work to become a carer for my mum.
This would have saved me going bankrupt.
It even says in the letter that I would have been able to claim if I left work to be a carer.

hannahk81 · 18 May 2013 at 1:54PM

They have said I can make a claim for the PPI, but I have seen threads that say you can't claim if you've been bankrupt.
I'm wondering if I can claim the PPI and fight for compensation for nationwide with holding information about my insurance when I went bankrupt

Annisele · 18 May 2013 at 4:15PM

In your first post you say the PPI was mis-sold, but later you say it may have been mis-sold. I'm sorry to be pedantic, but that really does make a difference. Are Nationwide actually admitting fault, or are they just telling you that they sold you PPI?

If you're saying you would have claimed if you'd known about it, that suggest the policy wasn't actually mis-sold.

Are you sure the failure to claim on the PPI actually led to you becoming bankrupt? PPI doesn't usually pay out all that much, and I'd be surprised if you went bankrupt for a debt small enough to have been completely covered by PPI.

You're also right to say the bankruptcy complicates things somewhat. Usually, if you could have made a successful mis-selling claim pre-bankruptcy, the right to make that claim now belongs to your trustee, not to you.

hannahk81 · 18 May 2013 at 5:54PM

The PPI was mis sold
I quoted the letter from Nationwide which said PPI may have been mis sold

If Nationwide told me I had a payment protection plan I could have looked into before going bankrupt. What I'm saying is they were not honest about it and I didn't have a chance to look at all options.

In the letter from Nationwide it says
'Loancare was a PPI policy designed to pay your personal loan repayments in the event of an accident, sickness, unemployment or if you had to leave work to become a carer.

A successful claim on the policy meant your monthly loan repayments would be met until you were back on your feet or up to a maximum period agreed at the start of the policy'

I paid back the loan repayments for 2 and a half years before I had no choice but to become a carer.
If Nationwide had told me I had insurance I would certainly have looked into it before declaring myself bankrupt.

Hope this makes sense

debt_doctor · 18 May 2013 at 7:59PM

Hi,

Any claim that you may have, whether it be claiming the PPI was mis- sold or a claim for compensation in that if you had known you were covered you might not have gone bankrupt are both claims that now belong to the Insolvency Service.
You have lost the 'right of action' to bring such a claim, and if such a claim was made then the proceeds belong to the OR.
That's a statement based upon the law, I do appreciate your feelings of how the bank let you down.

DD

Annisele · 18 May 2013 at 8:01PM

I'm still not convinced the policy was mis-sold. I think you have more of a claims / information issue.

Mis-sold usually means the policy shouldn't have been sold at all. For example, if you were self employed and were sold a policy that didn't cover self employed people, that would be a mis-sale.

I think that if you complain to Nationwide along the lines you have here, they're likely to say "You did need the policy - you say you'd have claimed on it - therefore it wasn't mis-sold".

When do you think Nationwide should have told you that you had a payment protection plan? If it never told you you had a policy at all, then you may well have a valid complaint (if you can prove that). If it didn't tell you about the PPI at the point of your bankruptcy, it's harder to say Nationwide was at fault.

Edit: But debt doctor is right in either case. The right to make the claim belongs to the OR, not to you.

hannahk81 · 19 May 2013 at 9:06AM

debt_doctor wrote: »

Hi,

Any claim that you may have, whether it be claiming the PPI was mis- sold or a claim for compensation in that if you had known you were covered you might not have gone bankrupt are both claims that now belong to the Insolvency Service.
You have lost the 'right of action' to bring such a claim, and if such a claim was made then the proceeds belong to the OR.
That's a statement based upon the law, I do appreciate your feelings of how the bank let you down.

DD

Thank you, this is very helpful

Mis sold PPI from company I went Bankrupt with

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