A failed claim against a PPI, and so Miss sold claim

Besttry

Background: I am a contractor with Ltd co. employed by my company (ie paying class 1 NI).I had a unsecured loan from Halifax and took out PPI with them for it. The girl I was applying for the 3 year loan with confirmed that as paying Class 1 I was looked upon as 'Employed' as opposed to 'self-employed'. Now, 2 1/2 years through the loan period I have become 'unemployed', and claimed against the PPI.

Issue: Halifax now say as I am Director of my company I must fold my company before they will pay my monthly loan. BUT it clearly gives definitions in the Terms and conditions the difference between employed and self employed ( ie which class NIC has been paid being the basis). I have written and spoke a number of times, referencing their T & C but they stick to their decision not to pay out.
They say to contact Financial Ombudsman about this.

Status: I have now claimed they have miss sold me the policy, and await further response. I am also being hassled about missed payments of both the PPI premiums and the loan repayments, but as now unemployed, unable to pay either! I do not wish to close my company as I am looking for work, as a contractor and need to work through this company.

Is there anything I can do to speed up the process?
If I got a refund of all the PPI premiums I could then pay off the remaining debt!

isplumm

Besttry wrote: »

Background: I am a contractor with Ltd co. employed by my company (ie paying class 1 NI).I had a unsecured loan from Halifax and took out PPI with them for it. The girl I was applying for the 3 year loan with confirmed that as paying Class 1 I was looked upon as 'Employed' as opposed to 'self-employed'. Now, 2 1/2 years through the loan period I have become 'unemployed', and claimed against the PPI.

Issue: Halifax now say as I am Director of my company I must fold my company before they will pay my monthly loan. BUT it clearly gives definitions in the Terms and conditions the difference between employed and self employed ( ie which class NIC has been paid being the basis). I have written and spoke a number of times, referencing their T & C but they stick to their decision not to pay out.
They say to contact Financial Ombudsman about this.

Status: I have now claimed they have miss sold me the policy, and await further response. I am also being hassled about missed payments of both the PPI premiums and the loan repayments, but as now unemployed, unable to pay either! I do not wish to close my company as I am looking for work, as a contractor and need to work through this company.

Is there anything I can do to speed up the process?
If I got a refund of all the PPI premiums I could then pay off the remaining debt!

Hi ...

Slightly confused by your post - does you ltd company pay you a salary? & are you still paying yourself a salary?

Mark

maxdp

Hi There they have definately miss sold this PPI. You could write to them with a SAR letter and send them a cheque for 10.00 and they should send you all information they hold on you. This will hopefully include the conversation you had with the girl who sold you the policy. Am sorry you are having these problems and really hope you get this sorted. The problem is that if you have to take this to the FOS you will be waiting about 18 months before your complaint is finalised as they are very busy at the moment.

petermb_2

Besttry wrote: »

Background: I am a contractor with Ltd co. employed by my company (ie paying class 1 NI).I had a unsecured loan from Halifax and took out PPI with them for it. The girl I was applying for the 3 year loan with confirmed that as paying Class 1 I was looked upon as 'Employed' as opposed to 'self-employed'. Now, 2 1/2 years through the loan period I have become 'unemployed', and claimed against the PPI.

Issue: Halifax now say as I am Director of my company I must fold my company before they will pay my monthly loan. BUT it clearly gives definitions in the Terms and conditions the difference between employed and self employed ( ie which class NIC has been paid being the basis). I have written and spoke a number of times, referencing their T & C but they stick to their decision not to pay out.
They say to contact Financial Ombudsman about this.

Status: I have now claimed they have miss sold me the policy, and await further response. I am also being hassled about missed payments of both the PPI premiums and the loan repayments, but as now unemployed, unable to pay either! I do not wish to close my company as I am looking for work, as a contractor and need to work through this company.

Is there anything I can do to speed up the process?
If I got a refund of all the PPI premiums I could then pay off the remaining debt!

If Halifax are saying that they consider you to be self employed as you are the director of your own company then you were the same status when they sold you the policy, which means that it was definitely mis-sold.

Halifax are pretty good at paying out having already been fined a hefty penalty for this sort of business so I do not think you will have to wait too long.

isplumm

petermb wrote: »

If Halifax are saying that they consider you to be self employed as you are the director of your own company then you were the same status when they sold you the policy, which means that it was definitely mis-sold.

Halifax are pretty good at paying out having already been fined a hefty penalty for this sort of business so I do not think you will have to wait too long.

Yes .... BUT I am also a director of my own company as well as an employee .... which I suspect is the same as the OP .... which is why I asked him whether he paid himself a salary .... cause then he would come under being eligible for PPI cover .... but the only way to claim would be to shut his company down ... ie. not be a director or an employee.

Otherwise what is to stop someone like me, taking out a loan for £20k, taking out PPI to cover the payments, then after 6 months stop paying myself & claim on the PPI??

Mark

Besttry

I have no money left in the company to pay myself a salary. (company only has myself as employee)

Besttry

Yes, but you could equally fold the company and still have the £20k loan paid!! So no difference? I was in no way informed about folding the company, and terms and conditions they sent state differences between employed and self employed....no extra text about 'BUT IF you are a director.......' its been extremely frustrating. I am receiving job seekers allowance - so they accept me as 'unemployed'!

isplumm

Besttry wrote: »

Yes, but you could equally fold the company and still have the £20k loan paid!! So no difference? I was in no way informed about folding the company, and terms and conditions they sent state differences between employed and self employed....no extra text about 'BUT IF you are a director.......' its been extremely frustrating. I am receiving job seekers allowance - so they accept me as 'unemployed'!

Hi,

So you are similar to me ... an IT contractor (I assume), who is unemployed. If this is true, then setting up a ltd company is fairly quick - my attitude would be to close the company down, use the PPI for the loan & when you find a job, start another one - after all you must have to pay for the company - even it is only for companies house filing every year.

In terms of your comment about the £20000 above, well if I closed the company down, I wouldn't get PPI paying cause I wouldn't get unemployed benefit.

Don't wait 18 months for the financial ombudsman - close the company, pay the loan & open a new company when you find a job!!

Mark

isplumm

have a look at this topic .... might help.

http://forums.moneysavingexpert.com/showthread.html?p=27151895#post27151895

Mark