mis-sold or mis-bought?

malcolmgd

My wife seperated from her ex-husband of 25 years in 2005. He looked after all the finances.

After few months she needed a new car. She took out a loan, her first ever loan on her own. The salesman told her it would be advisable to take a payment protection plan to cover sickness, etc. So she signed for it thinking that is what everyone else does. Nothing was ever discussed about the policy, other than she was recommended to take it out.

The form was filled out and she signed it, she didn't think anything of it, just thought it was the norm.

Its only in the last few days after speaking to a friend who received a refund for mis-sold PPI, that we decided to look into it. The monthly premium was £55.78 x 36 months.

The question is, is it worth pursuing a claim or would it be a lost cause?

-taff

it's up to her. If you don't, you get nothing, if she does, she might get something.


http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

societys_child

malcolmgd wrote: »

My wife seperated from her ex-husband of 25 years in 2005. He looked after all the finances.

After few months she needed a new car. She took out a loan, her first ever loan on her own. The salesman told her it would be advisable to take a payment protection plan to cover sickness, etc. So she signed for it thinking that is what everyone else does. Nothing was ever discussed about the policy, other than she was recommended to take it out.

The form was filled out and she signed it, she didn't think anything of it, just thought it was the norm.

Its only in the last few days after speaking to a friend who received a refund for mis-sold PPI, that we decided to look into it. The monthly premium was £55.78 x 36 months.

The question is, is it worth pursuing a claim or would it be a lost cause?

Nothing you've said suggests any wrong doing or mis-selling. It is quite normal to have PPI, it protects the holder, provided the cover is suitable for them. Is there anything in the T&Cs that would have prevented her making a claim had the need arisen?

magpiecottage

societys_child wrote: »

Nothing you've said suggests any wrong doing or mis-selling. It is quite normal to have PPI, it protects the holder, provided the cover is suitable for them.

I agree with that.

However, if it was a single premium policy and the salesman did not spell out the full cost of cover, including interest on the extra amount borrowed to pay the premium, there may be grounds for complaint - particularly if the term of the policy was less than the term of the loan.