Black Horse PPI Claim ~ Divorce Question

TheSnorkMaiden

Hallo

I am new and hope someone can help please.

I recently had a couple of successful PPI claims via a claims company (reading the posts here I know you advocate doing the work yourself, but at the time I didn't have the knowledge or time hence using the third party). I was happy with the results so suggested my boyfriend who I live with use them too.
He has a loan with Black Horse which was taken out jointly with his ex-wife. When they divorced, the total debts were split and he was to take all obligation in respect of Black Horse which he has duly done. (The divorce was just over 3 years ago).

He has been granted a reimbursement of the PPI to the value of £2223.54 (it would have been more but they have taken off the balance of the loan owed to clear the debt completely). We need to pay 30% of this to the claims company when received.

The problem is that despite having sent Black Horse a copy of the divorce minutes of agreement stating my boyfriend has sole responsibility for the Black Horse loan, they say that his ex-wife is entitled to half of the money. Is this correct? I don't think this is fair unless she is also obliged to pay half of the fees we will need to settle; and it does not take into account that the balance is considerably less because of the lump sum deducted to clear the loan.

I imagine this must be quite a common problem with a lot of couples divorcing and wondered if there are any solutions and how does the law stand on this? To my mind, if one party is relieved of all obligations in respect of a company, then this covers not only payments we make to that company but payments they might then make back to us. We would not stake any claim on PPI claims the ex wife has or may make in the future ~ her debts are hers, ours are ours. But I am no lawyer and a bit stuck to know what to do for the best.

Black Horse have asked us to make contact with the ex wife so she can sign an agreement (which will then take a further AGE to process no doubt ~ this whole thing has been going on for almost a year now). I don't mind her having a proportion but not half otherwise she will end up with over £1000 for absolutely nothing, and we will end up with about £200 after we've paid the fee.

many thanks in advance

[Deleted User]

TheSnorkMaiden wrote: »

The problem is that despite having sent Black Horse a copy of the divorce minutes of agreement stating my boyfriend has sole responsibility for the Black Horse loan, they say that his ex-wife is entitled to half of the money. Is this correct?

Yes it is.

This is why MSE (and the users of this forum ) never advocate the use of CMCs.
The Majority of your share goes to the CMC, while your boyfriend's ex is substantially redressed.
Sorry.

dunstonh

they say that his ex-wife is entitled to half of the money. Is this correct?

Yes. The PPI is an asset. The loan was a liability. He took on the liabilty only.

I don't think this is fair unless she is also obliged to pay half of the fees we will need to settle;

She is not obliged to pay any fees. It was your choice to pay someone to use the free of charge complaints process.

There are risks of using CMCs on non standard cases (as well as the usual waste of money they present). Sorry.

TheSnorkMaiden

Many thanks for the replies. lesson learned. 200 is better than nothing. i shall do my mortgage exit fees next but read into it carefully first and not use a claims company. appreciate the responses very much.

the ex will be a happy lady anyway she has just had a baby so im sure the windfall will be welcome *cats bum face*

jamesd

TheSnorkMaiden wrote: »

He has been granted a reimbursement of the PPI to the value of £2223.54 (it would have been more but they have taken off the balance of the loan owed to clear the debt completely). We need to pay 30% of this to the claims company when received.

Has the claims company really told you that they aren't going to want 30% of the amount of loan being paid off? Usually they would want 30% of the whole amount paid, whether it's off the loan or to you more directly.

It's entirely possible that you'd need a new loan to cover the rest of their fee if the amount paid off the loan was substantial.

[Deleted User]

jamesd wrote: »

Usually they would want 30% of the whole amount paid, whether it's off the loan or to you more directly.

Good point.
Something the OP needs to check urgently.

-taff

They can't have 30% of the total redress becayse half of it isn't the OPs partners.

They can only have the 30% on the OPs share of the redress.

[Deleted User]

-taff wrote: »

They can only have the 30% on the OPs share of the redress.

One would hope that is the case.

TheSnorkMaiden

Many thanks again for the information.

Happy to report that being only entitled to half of the claim, the claim handling company confirmed today they only want 30% of what we receive.

Good news as that's another loan to soon be cleared and a little spare cash for decorating.

I can't tell you how impressed I am with the advice here; I was at my wits end on Friday not knowing what was right or not, but after a simple post all has been clarified. Ok it is a bit less than we had hoped but a good outcome all the same.