Loan/PPI claim advice wanted

Wildsurf

Hi all,

I'm after some advice on behalf of my girlfriend.

A few years ago she took out an unsecured loan to buy a car. At the same time she took out payment protection insurance. Around 18 months ago she changed jobs. Two months into the new job she found she was pregnant (unplanned). a month after that hse had to have 3 weeks off work due to problems with her blood pressure. When she returned to work her new employers basically called her in and asked her to leave.

She was left with no job and no prospect of any other work as who would employ someone they knew was pregnant. Naturally she wasn't concerned as she had insurance. BUT, when she phoned the insurer, they told her the insurance didn't cover this scenario and wouldn't pay out.

Firstly, is their any way she could dispute the insurers decision? She has phoned on a monthly basis since losing her job but got nowhere.

Secondly if not, is it worth her making a claim that she was missold the insureance or by trying to claim has she invalidated this route?

The loan balance is now greater than the original amount she borrowed due to interest and charges being added on. The bank have been reasonable and she has agreed a payment plan, but this will leave her paying for many many years an paying a huge multiple of the original amount borrowed.

Any advice whether it helps or not would be gratefully received.

Thank you in advance

Ben and Kelly.

kinglewis

It sounds as if your girlfriend was effectively sacked rather than made redundant which is what the policy will cover. Most policies also have exclusions for pregancy related illnesses therefore you are unlikely to be able to dispute the insurer's decision.

Mis-selling of insurance is usually when your girlfriend was not made aware of the insurance.. or it was sold to cover something which cannot be claimed for. Just because on this occasion she cannot claim does not mean it was mis-sold. It is just unfortunate that the exclusions do not cover this particular event.

Was your girlfriend made aware of the extra cost for the insurance.. did she sign to agree to insurance?

That would possibly be your only route of complaint.

Wildsurf

Thank you for your reply.

She knew she was taking out the insurance, but didn't discuss cost as she just assumed it was automatic and in her words she thought it was something everyone got. She can't remember whether that was because they implied it or not though. She is adamant she was told it would cover her if she lost her job in any circumstances i.e. no mention it just covered redundancy.

It was definitely a sacking and the kind they can only get away with because she was in the probationary period of her job when they need no excuse. Even then though they were careful not to actually sack her, but asked her to "consider her future". She got legal advice and was told she would probably win if she took them to an employment tribunal for constructive dismissal, but that any compensation would be so small as not to make it worth the hassle.