AA Finance - Reclaiming PPI

Ginger1880

Hi guys,

I have just joined this forum & I am looking for some help

I had a loan from the AA for £3,500, I took it out in Feb 2005 and paid £135.37 for 30 months & made the final payment in Aug 2007

During that time I had to take take time off sick from work and remembered that I had taken out PPI for the loan, unfortunately when I phoned up to see if my loan would be paid while I was off sick I was told that sickness due mental health issues was not covered

I dont think I was asked about any pre-existing medical conditions and did not know that payments while I was off sick due to mental health problems would not be covered by the PPI...

I did contact the AA a number of years ago and I do think I received a letter back from them saying that it would be looked into but I never heard anything from them again

I also dont seem to have a copy of the letter I sent them with all the details of the loan and as I have moved house I cant find any paperwork related to the loan

What can I do? Can I claim for the PPI as I was misinformed?

Hope someone can help

Kx

-taff

The fact that mental illness isn't covered is in the T&Cs, it doesn't count as a pre-exisiting illness unless it was a pre-exisiting illness, plus you could have read the T&Cs to check that.
You'll have better luck complaining that it was single premium.

CarbonCopy

If your condition was pre-existing, i.e. you had seen a doctor about it before taking the loan, it’s definitely worth raising that issue with AA.

AA would only have to ask you about pre-existing medical conditions if it was an advised sale - that is to say they made a personal recommendation to you to take the insurance. If they did advise you to take PPI, you should definitely raise the pre-existing condition with them, because it was arguably not an appropriate recommendation.

In any event, AA would still have a duty to give you enough information to make an informed choice about taking the policy. So even if the sale was not advised and you made your own decision to purchase PPI, you could argue that this important exclusion was not drawn to your attention in the policy documents etc.

Of course, as –taff has said, you would probably have to have had the condition and at least seen a doctor about the symptoms before taking out the loan/PPI for any of this to be relevant.

One small note: you say you contacted AA a few years ago. If you previously complained about the sale of the PPI – and it was three or more years ago – you may be time barred from raising a new complaint. However, that shouldn't deter you from complaining.

[Deleted User]

Ginger1880 wrote: »

I dont think I was asked about any pre-existing medical conditions and did not know that payments while I was off sick due to mental health problems would not be covered by the PPI...

Unfortunately you are confusing a pre-existing medical condition with a medical condition that you later found was not covered by the insurance. Unless you were already diagnosed as mentally ill at the time you purchased the insurance then it was not mis-sold to you as you only began exhibiting such symptoms later.

-taff

CarbonCopy wrote: »

Of course, as –taff has said, you would probably have to have had the condition and at least seen a doctor about the symptoms before taking out the loan/PPI for any of this to be relevant..

Actually, I'm wrong. It's not relevant at all. A mental illness, even if it was pre-exisiting, wasn't covered and isn't covered by PPI anyway, so forget that angle completely.

CarbonCopy

-taff wrote: »

Actually, I'm wrong. It's not relevant at all. A mental illness, even if it was pre-exisiting, wasn't covered and isn't covered by PPI anyway, so forget that angle completely.

Oops - quite right. Although if it was a blanket exclusion, there would still be a potential complaint if the policy was recommended without a question about mental health being asked.
Similarly, if the sale was not advised, the blanket mental health exclusion should be featured prominently in the policy documents - although you'd obviously have trouble arguing that the exclusion would have stopped you from buying the PPI policy unless you did have health issues at the time.