Single ppi on joint secured loan

Krissjen

Hi, and apologies if I have gone about this post the wrong way but I just can't get the hang of using forums!

My partner and her ex-partner took out a loan with Welcome Finance, secured against their joint mortgaged property in Aug 2003. They split up in Oct 2005 and he moved out, and in Jan 2006 we started seeing each other and I helped her to get her finances in order (re-mortgaging the property to pay off Welcome and have house in her name etc. Dealing with Welcome was a very difficult process and eventually a settlement figure was given and they were paid in full at the end of Apr 2006. She recently asked me if she had P.P.I. with the loan from Welcome after seeing something regarding them and the F.S.C.S. on the internet and after we dug out her old paperwork (I remembered that her loan was for £19,000 but she paid back nearly £23,000) and it showed that P.P.I. was added to the original loan at a cost of £3680. We then found that the policy is in only her ex partners' name, although he would have been covered by his company sick pay scheme, and she was only part time anyway so wouldn't have been covered. Given that the policy is in her ex partners name, but she paid off in full the loan PLUS the P.P.I., is she able to claim the P.P.I. back herself under mis-selling rules, or could Welcome force the claim to be made by her ex partner? This may sound long-winded but I'm trying to make sure that all the relevant details are posted. Thanks in advance for any advice offered.

amersall

Did they both sign for the loan as joint borrowers or was it just the husband?.
If it was a sole loan then that person claims the ppi.
If it was a joint loan (sometimes these policys cover second named on the agreement for death)
then both signatures are needed to put the claim in.

magpiecottage

If the policy only covers the ex then it may only be in his name and that would seem to make her ineligible to complain.

Furthermore, the FSCS does not cover complaints against insurance intermediaries in respect of events which occurred before 14 January 20015 - so this seems to be a non-starter.

marshallka

It is usually single accident sickness disability etc etc and JOINT life.

Krissjen

Hi amersall, it was a joint secured loan (joint mortgage so had to be) but the P.P.I. policy schedule is only in his name. They didn't know they had it, and would both have received company sick pay if off work anyway. He left her high and dry when they split up, as he had transferred the endowment mortgage over to an interest only mortgage 9 years before they split up and cashed the endowment in.

Hi magpiecottage, we spoke to the FSCS in the first place as I had heard that they were dealing with welcome finances parent company as they were in default. and because the start date of the loan pre-dated the cut off date in 2005 they put us through to a department at welcome finance that will still deal with the complaint. The F.O.S. has also informed me that they may, if neccessary, still be able to take a case against the underwriters of the policy, but have initially advised us to go down the route of submitting the case to welcome finance first. The main point that I needed clarifying was whether my partner could make the claim on her own, seeing as she jointly signed for the joint loan, but then paid it off completely on her own including the P.P.I.. If she needs to involve her ex-partner he is almost certainly going to try and "steal" some of the potential payout or hold her to ransom for his co-operation.

Hi marshallka, thanks along with the other two for your response, I believe you may be right with that.