PPI Question

elldallan

Good morning

I am new to this forum and have a question to ask if anyone can help.

My friend was issued a credit card a few years ago (Slovakian with very limited knowledge English language) they were working agency and subsequently lost thier job and defaulted on the Credit card after a while. Now they have applied for a PPI miselling claim and the company in question ahve upheld claim.

My question is, that as they had insurance( with no idea they did have) when they lost their job if they had realised what they had they could have claimed on the PPI back then rather than default and have the debt passed to a collection agency . Should they just bank the cheque and use that money to drop down the debt a little or have they any recourse against the Credit card (Bank) for not being advised that they had insurance and therefore could have claimed back in the day so avoiding the defaulting and being transferred to a collection agency.

I hope you can understand my convoluted ramblings above !!!

dunstonh

Should they just bank the cheque and use that money to drop down the debt a little or have they any recourse against the Credit card (Bank) for not being advised that they had insurance and therefore could have claimed back in the day so avoiding the defaulting and being transferred to a collection agency.

Have they got the cheque yet? The lender is allowed to offset the redress against the debt (although in some cases they cannot).

Had the complaint been upheld or a goodwill gesture without liability being accepted? (most are the latter).

Whilst the outcome of complaints can result in consequences being taken into consideration, it is not common with PPI. Partly, as a complaint about PPI is effectively the individual saying they never wanted it and want to be put back in the position they would have been had the PPI never been taken out. In this case, the lender has agreed with that. You cant really complain that you want it voided and premiums returned but also want them to pay out a claim on the policy. It is one or the other.

elldallan

They have received a cheque (not banked) but now have come to me and I was just asking the question if they should basically take the small payment or actually see if they had any redress against the C?C company as if they had understood what was going on they (or been advised once payments stopped being made to the Credit card) that they actually did have insurance and therefore would have claimed then (if aware) to keep up the origainal repayments ?

-taff

elldallan wrote: »

My friend was issued a credit card a few years ago (Slovakian with very limited knowledge English language) they were working agency and subsequently lost thier job and defaulted on the Credit card after a while. Now they have applied for a PPI miselling claim and the company in question ahve upheld claim.

It also doesn't matter they speak little English because they knew what a credit card was, and if they had read their statements, they would have seen an extra charge.
The fact that they were a temporary worker [agency] means that it would never have covered them anyway, so the complaint is going to be upheld. Or should be upheld.
As dunston says, by complaining about it, they are saying they didn't want it or need it, so there is no recourse for a deafulted debt that wouldn't have been covered by PPI in any case.

dunstonh

They have received a cheque (not banked) but now have come to me and I was just asking the question if they should basically take the small payment or actually see if they had any redress against the C?C company as if they had understood what was going on they (or been advised once payments stopped being made to the Credit card) that they actually did have insurance and therefore would have claimed then (if aware) to keep up the origainal repayments ?

The problem is that they didnt complain on that basis. They put a mis-sale complaint in instead and that means they are asking for the policy to be voided as if it never existed and premiums returned. That is what has happened.

To change the complaint now to one where they say they actually want it and that the suffered a claimable event and wish to claim on the policy is possible. Indeed, some complaints have been settled that way. However, in those cases, they pay out the money they would have paid out under the claim. That may or may not be more than the refund of premiums. How long was the person out of work? if we say 3 months for example purposes, they would have got a figure that was around 15% of the monthly balance at the start of unemployment paid off each month. Would that be lower than the refund of premiums plus interest?

There is also the risk that the revised complaint fails and they end up with nothing.