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2 questions 1) mortgage PPI, 2) credit report and PPI

I've searched and read till my head hurts, so now its time to ask questions.

1) Mortgage PPI
In 2005 I took out a mortgage with Northern Rock. I had to take some form of protection insurance, either through them (Cardiff Pinnacle) or a 3rd party and prove it.

I took out theirs. In 2007 I found myself to unemployed (I was terminated as I was a director of a company, and I had declared it to them, but I hadn't asked their permission). So CP said no claim possible as wrong sort of unemployed. I managed to keep the payments going (on both the mortgage and the insurance), and in 2010 again found myself unemployed (contract had ended and it was taking some time to find a new one). Again tried to claim from CP, and after a while dancing around the fact that they went from saying I was self-employed to fully employed) they again refused the claim on the basis that I had made the company dormant whilst searching for work, and therefore I wasn't unemployed.

After stating that the DWP accepted that I was unemployed, as they were paying me benefits, and the local council, CP stated that if I liquidated the company (thus ruining my chances of a quick return to work) they would then consider the claim. I cancelled the insurance at that point, and my lender (NRAM by this point) was hugely helpful, gave me a payment holiday, and today I am properly employed again and never went into arrears.

Is this the sort of PPI that I could claim for? and what should I do?

2) Credit report and a PPI claim against RBS
During the period in 2010 I spoke with my lenders, and said I wasn't in a position to meet the full amounts, and therefore could I make a token gesture whilst getting back to work. I attempted to claim on my PPI from RBS, and got a similar response to the above. They did agree to my paying them £10 a month for 6 months. After the failure to claim, I started a PPI reclaim, which was held up by the Judicial review, and in sep 2011 I was successful (hurrah) not only that, it more than wiped out the balance of the card (double hurrah). At the same time I started using credit expert, and found that RBS has marked my account as delinquent (my other card lender did not). If my PPI requirement had been accepted, then payments would have been met, and I wouldn't have defaulted. Now that the default has been satisfied (within a couple of months) is it possible to get my credit report updated that the default was caused by RBS?

Thanks muchly

PieOne

Comments

  • dunstonh
    dunstonh Posts: 120,198 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    CP stated that if I liquidated the company (thus ruining my chances of a quick return to work) they would then consider the claim.

    That is the correct position. A lack of work is not unemployment. You have to cease trading and shut the company down to be unemployed.

    When you are self employed or run your own business, jobs come that could see you do loads one quarter and then nothing for the next. A quiet period is not unemployment as you are still trading.
    Is this the sort of PPI that I could claim for? and what should I do?

    The fact you couldnt make a claim because you failed criteria does not make it a mis-sale. If you were not happy with the responses to your claim then you could complain about that if you think they are wrong but it doesnt mean the person that put the policy in place mis-sold it to you.
    At the same time I started using credit expert, and found that RBS has marked my account as delinquent (my other card lender did not).

    You are not going to like it but the fact is that this is the correct position for them to take. You got yourself into arrears. That is a fact. A fact that doesn't change because you failed to meet the criteria already mentioned.

    You will almost certainly find that the refund by RBS was a goodwill gesture rather than an upheld complaint. So, they are not responsible for any consequential events. It would have to be upheld for that to be the case. Check the wording in your complaint outcome but if I was betting, I would say it was a goodwill gesture.
    Now that the default has been satisfied (within a couple of months) is it possible to get my credit report updated that the default was caused by RBS?

    The default should remain on your file but show as settled.

    The fact that NR had a payment holiday feature on the mortgage allowed you to avoid arrears showing on your report. Had they not had a payment holiday feature, you would be showing arrears on that as well.

    All that said, you do tend to find that NR are one of the lenders that is paying out as a goodwill gestures even when they dont have to. So, you may decide it is worth a go. However, you do need a complaint reason for the sale of the product. Not a later claims outcome.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for that Dunstonh - just for clarity though NR aren't subject to anything - its Cardiff Pinnacle who refused the claim, and it isn't linked to the RBS elements at all

    The fact that Northern Rock/Cardiff Pinnacle did not advise me that the product wouldn't be suitable for someone who ran their own company surely qualifies as being mis-sold though? doesn't it?
  • dunstonh
    dunstonh Posts: 120,198 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Thanks for that Dunstonh - just for clarity though NR aren't subject to anything - its Cardiff Pinnacle who refused the claim, and it isn't linked to the RBS elements at all

    If you complain about mis-sale, then you complain to the seller. Not the insurer. If you complain about the claims response, then your complaint is to the insurer, not the seller.
    The fact that Northern Rock/Cardiff Pinnacle did not advise me that the product wouldn't be suitable for someone who ran their own company surely qualifies as being mis-sold though? doesn't it?

    The problem was that it is suitable. However, you have a different view of unemployment. For insurers where you are self employed or own complany, you have to have ceased trading to be classed as unemployed.

    Some PPI plans do outright not cover self employed or own company. Or they have such restrictions in place that it makes it too restrictive. In those cases, complaints result in a payout. However, if they do pay out on closure of the company then that is not restrictive.

    Looking at an extreme, someone with their own company could position their business to pay them all in one month, then earn nothing for the next 11 months. They could spend 11 months lining up business. So, still working. They could then get the insurer to pay out as no work coming in if the insurers accepted quiet periods. You are either trading or you are not. If you are not, then the insurers look at it. If you are, then they will not.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I can see what you're saying, so I think i'll have a try at NR and see what they do - I wasn't informed up front that it wouldn't be an appropriate policy if you ran your own business, and could find no mention of such in the policy documentation.

    Thanks again

    PieOne
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