PPI re-claim

For insurance that ended within the last six years the time-limit advice given on this site states “You can start a reclaim. The six-year rule applies to active insurance, so a policy taken out 12 years ago but paid off five years ago was still active within the key six year period.” The Financial Ombudsman has rejected this in my brother’s case. My brother was mis-sold insurance in January 2004 and cover ceased in January 2009 when he was 65, although payments continued on the loan until January 2014. He submitted a claim in November 2012 but the insurer rejected this, maintaining that the claim was outside the 6-year rule. The Ombudsman agreed adding that the claim was also outside a 3-year rule because “he should reasonably have known that he had cause to complain more than three years before he did.”

Does the advice given on this site need amending or has the Ombudsman got it wrong?

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  • dunstonhdunstonh Forumite
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    The Financial Ombudsman has rejected this in my brother’s case. My brother was mis-sold insurance in January 2004 and cover ceased in January 2009 when he was 65, although payments continued on the loan until January 2014. He submitted a claim in November 2012 but the insurer rejected this, maintaining that the claim was outside the 6-year rule. The Ombudsman agreed adding that the claim was also outside a 3-year rule because “he should reasonably have known that he had cause to complain more than three years before he did.”

    For timebarring, there are two rules. a 3 year and a 6 year rule. The 6 year rule is 6 years from application. However, very few complaints can use that time bar due to the 3 year rule which is that you have three years from being reasonably aware of the issue to make the complaint.

    The ombudsman is correct. If this site says what you have pasted,then this site is wrong. e..g "The six-year rule applies to active insurance, so a policy taken out 12 years ago but paid off five years ago was still active within the key six year period.” - that would be wrong as the 6 year rule applies to application date. Not whether you were still paying in the last 6 years.

    I wonder if this site info is referring to data protection guidelines rather than the FCA rules on timebarring. i.e. firms will typically keep records for 6 years from the end of the contract.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User][Deleted User] Forumite
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    dunstonh wrote: »
    I wonder if this site info is referring to data protection guidelines rather than the FCA rules on timebarring. i.e. firms will typically keep records for 6 years from the end of the contract.
    That is indeed what the MSE article is referring to.
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