Ppi Question

creditconfused

I have a couple of friends who took out a joint loan and now he has lost his job. It has now become apparent to them that the PPI (sold to them by the lender) doesn't cover the second named person on the loan. They admit they didn't read the paperwork throughly hence it is a surprise to them. As is typical he is ths second person named on the loan............. It seems a bit off that it wasn't pointed out to them that the PPI doesn't cover them both.

They've been told they could change the PPI now but they obviously won't be able to claim on it and they would have to pay a fee.

Are there any valid grounds on which they can object to what is now happening? Isn't the fact only one of the named debtors is covered by the PPI considered to be a vital point the lender should have pointed out?!

Astaroth

There are 2 options with joint credit and PPI insurance - either to have one person (normally the main bread winner) being soley insured so that if they are off work the whole thing gets paid but if the second person is off they get nothing or that both are jointly insured but if one of them is off they only get 50% of the payments made... works out great if the lesser paid person is the claimant can be a real problem if the main bread winner is off.

Whilst there are 2 options not all insurers offer both options.

The first question of cause is is this actually a case where they think they were genuinly missold the policy or is one of the situations that simply because it hasnt worked out in their favour that they think it is missold? Excluding claims stage, I know with us that 90% of our customers who claim the protection was missold occures when the refund would pay off the remainder of the debt... slightly convenient after they have had over 25 years of cover