Business bank account overdraft guarantees?

GreyKnight

Hi there

My father has asked me to investigate whether the reclaiming PPI situation can be applied to insurance paid on a business bank account overdraft from back in the 90's?

He is a retired farmer and says that back when he was still farming he used to pay a fortune on insurance which basically insured him against being unable to pay off his business overdraft of £75,000. He's not very hopeful, but just wanted to find out. Does anybody know?

He doesn't have any records now as it was from about 1985 onwards. I expect it's a shot in the dark but I promised him I'd ask!

Many thanks

dunstonh

He is a retired farmer and says that back when he was still farming he used to pay a fortune on insurance which basically insured him against being unable to pay off his business overdraft of £75,000.

What was he insuring against?

GreyKnight

dunstonh wrote: »

What was he insuring against?

Well he says it was a guarantee for the overdraft. Basically saying if the business folded or something the bank would still get their money back.

[Deleted User]

On what basis would your father complain that this insurance was mis-sold?
It's not PPI, by the way.

addedvaluebob

Nobody on here knows whether it was PPI or not, the best place to start is by getting a SAR to check out the agreements etc he signed at the time and take it from there

magpiecottage

addedvaluebob wrote: »

Nobody on here knows whether it was PPI or not

It seems unlikely. £75,000 sounds more like life assurance - which was typically required by lenders in those days, particularly on business loans.

the best place to start is by getting a SAR to check out the agreements etc he signed at the time and take it from there

Except that such information is unlikely to exist fifteen or twenty years later.

addedvaluebob

magpiecottage wrote: »

It seems unlikely. £75,000 sounds more like life assurance - which was typically required by lenders in those days, particularly on business loans.

Except that such information is unlikely to exist fifteen or twenty years later.

So the best thing to do is put in the SAR and find out.

Most records with banks etc were originally microfiched and later on these were scanned and stored electronically. I have worked for companies where policy data is stored from the 1960's and before, so whatever was sold in the 80/90's may still be around

[Deleted User]

addedvaluebob wrote: »

So the best thing to do is put in the SAR and find out.

It's not PPI.
Why suggest the OP waste £10 "finding out" when they can simply call the Bank and seek clarification for nothing? This is a money saving site.

dunstonh

Also, if it was a limited company and the company is no longer trading and dissolved then there is no legal entity that can complain. Even if the bank entertained the complaint and upheld it, it would be payable to the company.

This does sound more like life assurance than PPI. And banks very frequently made life assurance a condition of borrowing and they are allowed to do so.

addedvaluebob

Moneyineptitude wrote: »

It's not PPI.
Why suggest the OP waste £10 "finding out" when they can simply call the Bank and seek clarification for nothing? This is a money saving site.

You have no idea whether it is PPI or not. A SAR is much more likely to turn up information than asking a call centre.

In a simple number of posts in response to someone asking for help, it has been decided it is not PPI, there are no records, the legal entity is probably no longer in existence, and it was probably life assurance that was allowed.

Nobody knows.

Greyknight put in the SAR and at least you will have some information to work with rather than having people tell you have no case based on pure supposition

dunstonh

In a simple number of posts in response to someone asking for help, it has been decided it is not PPI, there are no records, the legal entity is probably no longer in existence, and it was probably life assurance that was allowed.

Where has it been decided that is the case?

I can see posts that have questioned with it is PPI. How it is described doesnt make it sound like PPI. Indemnity insurance maybe. Life assurance maybe (given the mention of an amount of lump sum). Compulsory life assurance was and still is allowed.

I started my response with "if". So, quite clearly indicating a possible scenario and a relevant one because in post 1 the op says he is not working and he was a farmer.

The responses have made the OP aware of the potential issues and things to look at. No-one has decided anything.