How can I tell if PPI was missold...?

ScoobyDooLondon_2

I'm looking into my cousins financial affairs and he took out a Black Horse Finance agreement with PPI.

He's currently in dire financial circumstances and I'm trying to help him out by looking at his loan agreement.

He took out the loan two years (36 month loan period) for around £20,000 + £2,800 PPI. His arrears are around £12,000 and I want to know if there is any way I can get the PPI removed. I don't just mean the remainder of the PPI but the entire amount. How can I tell the PPI was mis-sold?

1) One of the things I was thinking about is his arrears - since he was in arrears pretty much from day 1, would the PPI still still pay out in these circumstances?

2) My cousin is a self-employed mini-cab driver - anyone know if PPI would actually have paid out and in what circumstances?

3) To my knowledge, there was no information sent on the details of the PPI, ie how and when you could claim, and in what circumstances - would this be enough to ask for a full PPI refund?

Any advice most greatly appreciated.

Thanks

Astaroth

1) The only way to tell if the PPI was missold is:

a)They were told they could only have the loan if they have the ppi (this isnt the same as being told it is a damned good idea to)

b) That a major part of the PPI cover would not cover him at the time of the insurance being taken out, the lender would have known this and he wasnt told. The obvious route here to check is if they cover self employed people as some dont (but the majority do)

2) without seeing the policy it is impossible to say if it would pay out or not as some do cover self employed and others dont. If they did cover it then it would be very similar to an employed persons cover ie sickness and involuntary unemployment - slightly more complicated for the self employed as for sickness there is the question of can they get a temp in to cover his role so the business still makes money and so he still gets paid, for a shop the answer is probably yes, for a minicab driver probably no. Involuntary unemployment is his company going bust.

3) No, certainly not, he almost certainly will have been sent it with the original welcome pack etc but it is the sort of thing people throw away as junk mail etc but it could also have been lost by royal mail etc. Saying you never had a copy of the T&Cs can also put you in a very bad light of "well why did you wait 2 years then?"