Company Administration

llew99

Hi,
If a company that sold you the ppi on a loan goes into administation,can you claim a refund off the finance company instead.
regards

dunstonh

llew99 wrote: »

Hi,
If a company that sold you the ppi on a loan goes into administation,can you claim a refund off the finance company instead.
regards

In some cases no. However, in some cases yes. In some cases you need to go to the FSCS.

It usually depends on the type of debt, the status of the broker/agent, the date and the regulatory body that existed at the time.

magpiecottage

dunstonh wrote: »

In some cases no. However, in some cases yes. In some cases you need to go to the FSCS.

It usually depends on the type of debt, the status of the broker/agent, the date and the regulatory body that existed at the time.

For a sale on or after 14 January 2005, the Financial Services Compensation Scheme seems to be the correct port of call.

But in either case, you could do so in respect of a purchase that was above £100 and under (depending on when you took it out) £15,000 or £25,000 - so that it fell under the Consumer Credit Act 1974.

We are talking, though, of the purchase of the PPI policy, not the main loan. So if you borrowed between £100 and £15/£25K extra for a single premium PPI policy then the lender would seem to be liable under Section 75 of the Act.

(This would rule out monthly premium PPI because you would be paying as you go and therefore not borrowing but most single premium plans would be covered).

Whether you could then take the lender to the Financial Ombudsman Service is a bit more complicated.

Events relating to consumer credit that took place on or after 6 April 2007 are under its jurisdiction but, as I have said, you can claim to the Financial Services Compensation Scheme for them anyway.

However, if the lender voluntarily subjected itself to FOS jurisdiction at the time the loan was taken out, I think you have an arguable case - particularly if the broker then went on to become directly subject to FOS jurisdiction in its own right before its demise.

If the lender was a High Street bank or building society then almost definitely FOS will consider whether it has jurisdiction (which does not mean it will conclude it has, let alone uphold a complaint).

However, you need to explain to the lender that you are pursuing it under Section 75 of the Consumer Credit Act 1974 and, if necessary, you must explain to FOS that your complaint is that it has failed to honour its obligations under Section 75.