Helping the elderly (Part2)

radaas

In these times of the crunch, I asked my uncle and aunt how there finances were holding up, and found to my horror that things are not just getting worse now but have always been bad. ie bank charges, huge debt loan consolidations, mortgage defauilts.

From sorting out my girlfriends issues I thought I knew what to do but need some advice as this case seems a lot more extreme.

Bank account is with Abbey

Have split this among different RELEVANT boards

PPI

It seems that when my uncle and aunt got together, my aunt was a bit of a spender, who had multiple maxed credit cards, on their union my uncle combined it all and paid them off via a loan. subsequent spending subsequent loans.

I have not got the full picture on things as he doesnt have the full picture himself, the way he explains it to me is that he took out a loan for about 40k to consolidate and pay off everything, had to up that a bit more after my gran died and he has no idea why he now has a loan of £80k, I explained to him PPI is a huge chunk of it.

Had a look at his JOINT bank account and this is what I saw, aprt from the usual mortgage, loansx2, pensions, cards.
He also pays

Scotish equit £45 - Health insurance
Abbey Nat life £81.13 - Life insurance for both
Ciren friendly society £48.3 - Health insurance
H S A £8.66 - Health insurance for my aunt

Hes an electrician working with industry tools, shes a DIY store worker,
Is this not overkill in the insurance department, especially when combined with the PPI of the 2 loans?

I really dont think he knows what he is doing and has overkilled on the insurance as he has been scared into it.

Surely the adviser for the loans would have asked them/seen (one loan is with abbey) if they had life/health insurance already?

If I put forward a claim for misselling PPI, is there a chance that they ask for the loan to be settled in full? (loan 1 has a life of 20 years and its last incarnation started 01/07/04, payment of £699.48). I have never delved into this area, but there finances are strained, they have been living in the od and have been told last month that they aint allowed one now. If the Loan suppliers call in the loans as revenge for us claiming PPI it will kill them.

radaas

bump....PLEASE

beaujolais-nouveau

Sorry you haven't had any other response so far. I am no expert but I think that is too many health insurances. I doubt that they would all pay out in the event of a claim - having several health insurance policies is not like having several pensions. I would also look at the terms and conditions of the life insurance/assurance: my building society tried to get me to take out one of these only this week ("guaranteed acceptance") but it looked to me as if - in exchange for paying in a useful amount every month - the pay out would just about cover the funeral costs, so I binned the leaflet. Be careful of cancelling the life insurance, though, as there may be a clause that says you lose everything you paid in, if you cancel before death.

I am only just starting out on the PPI reclaiming path, myself, and there is a separate topic(s) for this. But definitely go for it.