Making a PPI Claim on Redundancy with an SMP Complication

ngozi79

Hi All,

Not sure if this is the right place to post - feel free to move me if necessary!

I have been employed for 5 years by the same employer. I am currently registered as a Director of said company, although I'm not sure that is relevant in this case.

I am 7 months pregnant and will go on maternity leave in 5 weeks time. I am currently in discussion with my CEO about a Compromise Agreement to release me from employment at the point which I start maternity leave. I will be offered a lump sum as a severance package, because PILON etc is obviously quite alot more complicated once mat leave comes into the equation. I should note that I have been party to conversations around the decision to terminate my post, and it is all amicable with no conflicts.

It is yet to be confirmed, but I am expecting to be paid my SMP for 39 weeks as normal, despite no longer being employed by the company. This is one of the 'benefits' of being made redundant at more than 25 weeks pregnant. I can take this either as a lump sum or monthly, but not sure if it makes a difference to the situation which I take.

I have a Santander Personal Loan, taken out in October 2010, which will be paid off in full in October 2013. At the point which I start maternity leave, I will have just short of £1000 left to pay.

I took out PPI on this loan at the beginning, and it remains to this day. Checking the T&C's, my forthcoming unemployment should mean I am able to claim on the insurance for the remainder of the loan period and have the balance cleared. Nothing in the policy states any restrictions on Compromise Agreements or being paid SMP during unemployment.

Does anyone have any experience of a similar situation I wonder? Am I going to hit a brick wall with Santander because I will be in receipt of SMP, or because I am taking my redundancy in the form of a Compromise Agreement?

I guess that if I do find that they attempt to block my claim, I could put in a complaint for 'mis-sold' PPI on the basis that there is insufficient detail about such a situation for pregnant women maybe? That would cost them about 50% more than covering my payments for the rest of the loan.

Any advice much appreciated. Thanks all!

[Deleted User]

ngozi79 wrote: »

Checking the T&C's, my forthcoming unemployment should mean I am able to claim on the insurance for the remainder of the loan period and have the balance cleared.

You'll need to check with your insurance provider whether you'll be eligible to claim in your circumstances. Becoming pregnant might be deemed voluntary unemployment I think. You certainly won't have immediate cover and I'm not sure if the insurance will pay off the remainder of your loan.

Your potential mis-selling complaint is very weak though, so I wouldn't be counting any chickens on that score...