Companies in Default/FSCS Claims - Picture, London Scottish, Twopart

mikee31

Ok, so I contacted Welcome Finance today to see if I could reclaim PPI for 2 loans I took out, the first in 2002 and the second in 2003 (think this one consolidated the first).

I was informed that whilst I could submit a PPI Consumer Questionnaire form for the 2003 loan, as Bright Finance arranged the 2002 loan and as they were no longer operating I would need to contact the FSCS.

So I contacted the FSCS regarding both loans and had the following reply;

"We have carefully considered all the evidence you have provided in support of your claim against Picture Financial and unfortunately you are not eligible for compensation under our rules.

The Financial Services Compensation Scheme operates under a set of rules made by the Financial Services Authority, the UK’s regulator for the financial services sector. These rules lay down terms that must be met before we can consider a claim and we have no discretion to disregard them, however deserving the circumstances of a particular case. Under our rules we can only look at claims in respect of mis-selling if the advice was given by the firm after 14th January 2005, the date from which insurance intermediary business was regulated by the FSA.

It appears from your correspondence that your insurance policy began 2002 & 2003. Unfortunately, this means that your claim for compensation falls outside of our jurisdiction.

However, if you have any evidence to show that Red Picture Financial gave you any advice about your insurance policy after 14th January 2005, please send it to us so that we may reconsider your potential claim.

We are sorry that we cannot help further. If you have any questions about this letter please telephone us on 020 7741 4100 or 0800 678 1100 and ask to speak to our Customer Services Team. For general information about FSCS, please check the information on the back of our headed paper or visit our website at www.fscs.org.uk."

Firstly, who are Red Picture?
Secondly, Is this correct or are they just fobbing me off?
Thirdly, should I take this further?

Any help and advice would be much appreciated.

-taff

Your complaint is over.
Bright Finance went into administration, and as they sold the PPI to you prior to January 2005, you can't complain to them and the FSCS won't touch it.
https://forums.moneysavingexpert.com/discussion/2056199

[Deleted User]

mikee31 wrote: »

Is this correct or are they just fobbing me off?
Thirdly, should I take this further?

FCSC are not a Bank and don't "fob" people off.
Your complaint does not fulfil their criteria for awarding compensation to customers financially disadvantaged by firms no longer trading. You took out the PPI and loans before regulation began in January 2005.


You have little recourse to "take this further", I'm afraid. You might want to investigate the insurer/underwriter route, though.

mikee31

Oh well, thanks for the replies, much appreciated.

amersall

Find out who the insurer was and see if they were GISC registered, if they were then make the claim to them.

di3004 may see this post and help you further, she won a claim against the insurer last year, she will guide you with this if it is a route you can follow.

[Deleted User]

amersall wrote: »

Find out who the insurer was and see if they were GISC registered, if they were then make the claim to them.

I thought this suggestion was very unlikely to be successful in the vast majority of cases?

amersall

There have been posts on here where there have been wins with the underwriter/insurer route, nothing ventured nothing gained, I would give it a go if it were my PPI.

Stupid_Question

Isn't the more important issue if Bright Finance where GISC regulated?

[Deleted User]

Stupid_Question wrote: »

Isn't the more important issue if Bright Finance where GISC regulated?

No.
Bright Finance are no longer trading, so a complaint can no longer be made directly to them.
However, if the company that provided PPI (the insurer) was GISC regulated, the argument is that they should have ensured the sale of their PPI products fell into line with regulated processes.
Very few actually get redress this way, but FOS often suggests it to those in the OP's position.

Stupid_Question

Moneyineptitude wrote: »

No.
Bright Finance are no longer trading, so a complaint can no longer be made directly to them.
However, if the company that provided PPI (the insurer) was GISC regulated, the argument is that they should have ensured the sale of their PPI products fell into line with regulated processes.
Very few actually get redress this way, but FOS often suggests it to those in the OP's position.

I thought that the argument was that a GISC regulated insurer shouldn't accept business from a non GISC source and that's when the insurer becomes liable, so if Bright Finance were under GISC at the time of the sale the insurers status becomes irrelevant?