PPI Claims for Ltd Companies

ronmun

Can Ltd Companies claim for misold PPI or is it just for individuals.
ronmun

dunstonh

PPI is rare for limited companies as you are insuring an individual. Not a company. A limited company cannot be made redundant or get ill for example.

Limited companies tend to take out insurance such as key man insurance or life assurance or income protection on key employees. Some business loan repayment insurance is possible but its a little different to the usual individual cover.

The directors of a company can complain about whatever they like. However, it would be interesting to know what exactly this PPI is. If it is even PPI

georgie85

Hello, I'm a newbie at this. I'm trying to claim for misold ppi for a Ltd company. It was a small retail business with 2 of us, me as director and my wife. My name is on the policy as well as the company name.

This is their response:

As you know from your involvement at the time, the insurance policy in question was purchased by xxxxxxxxxx Limited and the parties to the insurance contract were the company and the insurer. Only parties to a contract have any rights arising out of that contract, including the right to bring a redress claim against one of the other parties.

Since the company has been dissolved and has no authorised directors or other officers, it is not clear how either the company or anyone elsehas the necessary legal standing to bring this claim against the Bank. Therefore, before we start to investigate further, I will need a confirmation of the basis on which you are entitled to bring this claim.


Any advice on my response to Lloyds TSB would be most welcome.

dunstonh

Only the legal entity can put in a complaint (or receive money if complaint successful). As there is no legal entity any more this complaint would be dead in the water.

Even if they accepted the complaint and it was successful, the money would have to be paid to the limited company. That would require bank accounts reopened and the usual company house requirements for submission of accounts etc.

georgie85

Ok thanks, you say PPI is rare for Ltd companies yet they still sold it. I might write back to TSB just for the sake of it. Don't ask - you don't get !

dunstonh

you say PPI is rare for Ltd companies yet they still sold it.

Depends on what you are calling PPI. life assurance, key man insurance etc is not PPI. PPI is a specific type of product and typically individual based on not company based. The only type of PPI likely to be sold to limited companies is BLRI (business loan repayment insurance).

I might write back to TSB just for the sake of it. Don't ask - you don't get !

And what would your letter contain to show them that you are legal representative?

Did you even have PPI or is it other insurance that is not PPI?

dazza12

It also depends on how the company was dissolved. If it was dissolved by the OR, any redress that the company would have received is to be forwarded to the OR for them to dispose of accordingly (usually distributed amongst creditors). It would mean going through that effort for nothing.

If the company was voluntarily liquidated, there may be a possibility depending on how you approach this. Reopening the company as mentioned would result in filing requirements, and may expose the company to tax liabilities. In addition you'd have to liquidate the company again. There are a very limited set of circumstances where you can act as a representative of a closed company, but such advice is well beyond the scope of this forum. UK Business Forums is normally quite helpful, but beware of the IPs and accountants touting for business by PM.

A Ltd company IT contractor had not been paid by an agency of a client for several months and as a result closed down his business. A short time later, the agency's money issues were resolved by a buyout, and his outstanding invoices were paid. In normal circumstances he would have lost the money but with legal help was able to resurrect the company and make the necessary submissions, tax submissions etc and close the company again (by this time he was trading under a different name).

Is the potential redress substantial? If it's likely to only be a few hundred pounds it's not worth the effort of resurrecting a closed company.

It is best to take legal advice on this if you feel you may want to proceed. Not from a PPI claim company pretending to be a solicitor, but one who specialises in business law.

georgie85

Thanks for the feedback. I checked again and its a Business loan repayment insurance. They put my wifes name as nominated person on the schedule instead of mine - she declared a pre-existing medical condition. I don't really want to go through re-opening the company as there may be other debts lurking out there. These outweigh any benefit of a claim against the bank.