Can Using PPI Affect Credit Rating?

john_oak

Goodmorning. I bought a new car in 2007 and very unusually for me, took out PPI tosafeguard my repayments for amongst other things, redundancy.

In2009, as a result of the banking crisis, my company made me redundant.

I invokedthe PPI and the car loan was paid to term for the remaining 3 years by the PPIseller.

Ihave 2 questions. The first and main question is, can actually having to use a PPIproduct affect my credit rating? The second concerns the PPI company itself.The correspondence I had with the company was all postmarked, ‘Dublin’. Could this haveaffected my legal rights as the PPI provider, (I found out), was not UKbased.

InsideInsurance

1) No, or at least it shouldnt. Claims handling delays can result in late payments but when the loan and insurance are fully linked processes are normally in place to ensure any late payments are not recorded as such

2) There is too little information to answer this one. For one it is unclear if the insurer was irish or just the administration company.

Generally having an EU insurer makes no difference as the EU operates a passport scheme so can write business in other counties but the target companies regulators/ ombudsman still have jurisdiction to deal with any complaints (ie you could still have gone to the UK FOS even if its an Irish insurer).

john_oak

Thanks for that.

The_Boss

Technically it can, but in an indirect way.

If you use PPI having lost your job, it means you need to find a new job. This means that when credit scored in future, you will likely have been with your current employer for less time than previously. Not so important after the first year, but would definitely be a factor in the first 6 months and likely up to one year in a new job.