Claiming on Credit Card Insurance

Phaedra

Hello all

A couple of years ago, my brother was made redundant. He has Multiple Sclerosis, so it was a double blow, as he knew he'd have trouble finding employment - although, not for want of trying since. His health has also deteriorated a little since then, so working full-time would be too much.

When he was made redundant, he paid approx. £7,000 out of his redundancy money to clear his credit card debt. Over the last couple of years, he has run the card up again, and is now struggling to make the repayments. I know this was a silly thing to do, but he has only just told me about this, and all I can do now is help him sort it all out.

He is still paying insurance to cover the repayments against unemployment, injury etc. and has always paid this, so instead of using his redundancy payment to clear the debt, he could have taken advantage of the insurance at the time He didn't think and just automatically paid it.

I know this is a long shot, but I wondered if it were possible to claim anything now on the insurance. Even if they deducted the repayments on the balance outstanding at the time of his redundancy, that would help.

Or am I dreaming?

Thanks for any advice, in advance

regularsaver1

Phaedra - even if if he did claim it would not have cleared the debt

It probabaly would have paid 10% of the amount outstanding each month for 12 consecutive months (min payment approx 5%, so this is paying more than that). After a year he would have had to make some kind of payment.

Insurance covered the first thing, so unemployment, which most clauses say that you must notify them within 90 days to make a claim. His claim would have changed to sickness, but as he did not make them aware of the redundancy I'm not sure how he would stand now

Phaedra

Thank you. That's very useful, because thicko that I am, I didn't think of him making a claim for illness. He is sick. I don't suppose there is anything to stop him making a claim because he can't work NOW because of his illness.

I know that they won't clear the debt, but having the payments covered for a while would give him some breathing space.

regularsaver1

He might be able to get something back for the insurance he is paying now, but he is still covered for life cover. Everything else is related to him working which he is not.

It may be worth his checking it out