PPI Refunded from FCSC and Welcome

rolo1952

I have been dealing with a PPI claim with Welcome finance for my sons partner. She has finally received a letter from FCSC awarding her £1888 based on 2 loans
I thought that this was a bit low and was expecting more however we are grateful that she won the case.
In the paperwork it states that as each loan was paid off early and because she was not given any rebate for PPI she is entitled to
£750 from the first PPI
£250 from the Second PPI
from the insurance company.
We are to contact the insurers for thios money.
Anyone know if this is usual and if so what are the chances of the insurers releasing this money.

Thanks

amersall

Hi there, well done on the win.
Just so you know the FSCS only pay 90% of a claim,so the offer may be right,have FSCS contacted the insurance company to let them know this? if not you should contact them and they should pay this.

rolo1952

Hi Thanks for the reply the FCSC paid £1888 which is 90%

They don,t say if they have contacted the insurer but have said I should contact them for this rebate.

I was wondering if this usual and if anyone else had any experience of this happening to them.

Thanks

di3004

Well done!:beer:

That sounds about the right actions they take.

AndyLGR

Nice one.

How long did it take to get the refund from when you applied for it?

rolo1952

First letter sent to Welcome jan 2010.
Finally got correct forms to complete July 26th 2010.
Forms sent to FCSC 27th July 2010.
Moiney in bank account 15th august 2010.

magpiecottage

Some time ago insurers agreed (following some "arm twisting" by the FSA) to make partial refunds if a single premium PPI policy was cancelled part way through (typically when the loan was paid off within five years).

The FSCS is a fund of last resort and only pays where there is no other source of recovery (which is reasonable because firms which have nothing to do with it have to contribute to it). Consequently, if you can apply to the insurer for a refund the FSCS will not pay it.

AndyLGR

rolo1952 wrote: »

Hi Thanks for the reply the FCSC paid £1888 which is 90%

They don,t say if they have contacted the insurer but have said I should contact them for this rebate.

So FSCS paid 90% of the claim in to your bank, but what did they say to contact the insurer for? The remaining 10%?

rolo1952

sorry about the confusion FCSC paid £1888 for mis sold PPI
This figure was 90% of what should have been paid but FCSC pay 90% due to Welcome being in default.
FSCS have advised me to contact the insurer direct as due to both loans being paid off early should be entitled to
£750 from the first PPI
£250 from the Second PPI
direct from the insurer.
Have now contacted Werlcome about this and they claim the this money was already refunded when loans were paid off.
I have the statements from Welcome showing the the settlement figures were the same as the balance owing at the time loans were repaid no signs of any refunds being applied to reduce the amount to be paid.

Any Advice on what to do next.

Thanks