URGENT - PPI insurance help needed

SusieWinwood

My DH was made redundant in December 2008 and is claiming on his PPI to pay the premiums on his loan and credit card.

He now has had a threatening letter from the Smellyfax saying that if he doesn’t pay £100 arrears before the end of next week he will be taken to court and bailiffs involved etc etc.:mad:

He is on JSA, and they know this as they check his bank account for transactions. As from 10 June his JSA will stop and he has no income whatsoever!

My question is. How can he be in arrears if his PPI is paying the premiums? Do they not have to pay the full amount? If this is the case what is the point of paying PPI in the first place? :eek:

TIA

Susie

di3004

SusieWinwood wrote: »

My DH was made redundant in December 2008 and is claiming on his PPI to pay the premiums on his loan and credit card.

He now has had a threatening letter from the Smellyfax saying that if he doesn’t pay £100 arrears before the end of next week he will be taken to court and bailiffs involved etc etc.:mad:

He is on JSA, and they know this as they check his bank account for transactions. As from 10 June his JSA will stop and he has no income whatsoever!

My question is. How can he be in arrears if his PPI is paying the premiums? Do they not have to pay the full amount? If this is the case what is the point of paying PPI in the first place? :eek:

TIA

Susie

Hi Susie

Sorry to hear of your issues here.

May I ask why your hubby's JSA payments will stop?#
Surely they have to pay him something, I would check on the jobseeking boards below on this actual matter.
Help must be out there somewhere, due to this current time with the recession etc.
Do you mind me asking if you have children?

In regards of him receiving these threatening letters I would seek advice with a free organisation, you will find many who post in similar situation on the Debt Wannabe thread, definately worth posting on there, where there are letter templates you can send and sort this problem out.

Good luck and hope this is sorted out soon.;)

SusieWinwood

Hi

Thanks for your reply.

His JSA stops after 26 weeks which will be on 10 June. I work full time so that is probably why he gets not a bean after that!

We have a 7½ month old daughter. We do get WTC and CTC but not a lot as they consider DH to be an unpaid child minder. We both have to work 16+ hours to get any help with nursery which she is in one day a week. I’ve had to reduce my mortgage to interest only while he is out of work.

He signed on yesterday and was told there is nothing he can claim after 26 weeks.

Makes my blood boil! :mad:


Susie

di3004

SusieWinwood wrote: »

Hi

Thanks for your reply.

His JSA stops after 26 weeks which will be on 10 June. I work full time so that is probably why he gets not a bean after that!

We have a 7½ month old daughter. We do get WTC and CTC but not a lot as they consider DH to be an unpaid child minder. We both have to work 16+ hours to get any help with nursery which she is in one day a week. I’ve had to reduce my mortgage to interest only while he is out of work.

He signed on yesterday and was told there is nothing he can claim after 26 weeks.

Makes my blood boil! :mad:


Susie

Susie

We are in the same situation as you hun but I care full time for my son with special needs, where I am a full time carer for him.

My hubby has been signing since Dec 2008 also due to job losses and we have a mortgage and awaiting still for them to sort this out in to interest only.

Now is your hubby JSA income based or Contribution based?

My hubby is Income based JSA, and have not been told this stops, so it may be worth finding out more info on this matter just in case.
I think we should do the same thing as well.

But just as long as your hubby is still actively seeking employment the insurers should still pay out the premiums, as I imagine your hubby would still have to sign on.;)

di3004

Hi there

Just found this about JSA here:
How long does it last?
Contribution-based JSA lasts for 6 months only. Income-based JSA is similar to Income Support.

Found this information on this site:
http://www.communitycare.co.uk/Articles/2008/05/29/37442/job-seekers-allowance-jsa.html

Again in regards of the PPI, write to them and ask for a written explanation of the arrears with calculations.

AMILLIONDOLLARS

I was earning too much so after his contribution based JSA ran out, it was down to me. When you think he left school at 18yrs and worked until he was 49 yrs, all he could get was six months:mad:

Makes me mad when I think some people have never worked a day in their lives and manage to claim for everthing!!

AMD

di3004

AMILLIONDOLLARS wrote: »

I was earning too much so after his contribution based JSA ran out, it was down to me. When you think he left school at 18yrs and worked until he was 49 yrs, all he could get was six months:mad:

Makes me mad when I think some people have never worked a day in their lives and manage to claim for everthing!!

AMD

It is mad !!

You would think they would at least move them on to Income based JSA wouldn't you?

MarkyMarkD

There are many reasons why he may be in arrears despite having PPI.

The PPI may not cover the full amount of the mortgage payments, because an inadequate level of cover may have been selected up front.

The PPI may have a wait period during which no payments are made, and even when the wait period has expired, the wait period may not be caught up.

There may be a time lag with each payment, meaning that he's always a bit behind (but not getting worse, subject to the first point).

If it's just a lag or wait period issue, I would expect the lender to be reasonable. If the PPI is inadequate and therefore the arrears are increasing each month, I would expect them to look to you for the difference.

SusieWinwood

UPDATE

Well, apparently the problem is that when DH send off his ABI1 form (?) to the insurance people, they seem to sit on it for a few weeks then decide to pay the premium :mad: Consequently, the payments go into arrears through no fault of his own. Apart from placing said form in the sweaty palm of the Smellyfax numpty that deals with it I'm not sure how much more the poor chap can do!! :mad:

I've fired off a letter stating as much at that threatening to take him to court over this is not on etc etc.

He's received a letter this morning saying that as he's not made the £100 payment to cover the arrears they are going to transfer the debt to a collection company :mad:. they have also said they are cancelling his credit agreement - not sure what this is about??

He feels he has no choice but to pay as he doesn't want a mark on his credit file. I find this appalling as what is the :mad: point of having PPI when it doesn't do what it says on the tin! :mad:

He's off the the CAB tomorrow morning to try and sort this out before D Day which is 8 June.

Is it worth getting the Banking Obmudsman involved?

Also, come next week he'll have no income whatsover as his JSA expites so he cannot pay the next lot of arrears that are bound to build up!

Any advice much appreciated

Susie

dunstonh

I find this appalling as what is the :mad: point of having PPI when it doesn't do what it says on the tin! :mad:

It does. If you check the "tin" you will probably find that it says it wont pay out until x number of days.

SusieWinwood

Point taken but they know by now (or should do) that payment is on its way through their own insurance section. A little leeway to take into account delays would be worthwhile I feel, and also reduce stress on DH which tbh he doesn't need any more at the moment

Susie