Do PPI claim contracts have a time limit?

purplexed

Can anyone tell me if a PPI claim contract is closed if you're notified that no PPI has been found and you receive no further correspondence from the company for more than one year! or are the companies allowed to keep them open indefinitely. My gut feeling is that I will have to pay them to close it.... but I'm hoping someone has been in the same position and can put my mind at rest!!!

Nasqueron

If you have complained about PPI (important distinction from claimed on the insurance) and if the firm rejects it you have 6 months to refer to the FOS otherwise it can be time barred - the company can then refuse to deal with it. I would assume that when that happened the company you used accepted there was no PPI and chose not to continue the claim. If it was no win no fee then there is nothing to pay and most of the firms operate on the basis of getting their cut from any refund you get so no refund = no fee.

That said, if you have no evidence you paid PPI and neither does the firm, pretty much that is it, over and done - if you subsequently find evidence of a PPI payment then the firm will come after you for a cut if the bank pays out later on - you could try and get them to put in writing that the contract is over and they would have no claim in the future but they might then be suspicious you have found some evidence.

purplexed

Thanks for that... I think I'll contact them and ask them to close the contract, I did advise them at the onset that I was pretty sure I had no PPI - so they should have closed it over a year ago when they advised me that no PPI was found.

Insider101

purplexed wrote: »

Can anyone tell me if a PPI claim contract is closed if you're notified that no PPI has been found and you receive no further correspondence from the company for more than one year! or are the companies allowed to keep them open indefinitely. My gut feeling is that I will have to pay them to close it.... but I'm hoping someone has been in the same position and can put my mind at rest!!!

I think you need to read the contract! If it says it's valid for a set time period then it is. Otherwise, it is generally valid until/unless either party cancels it.