FSCS says can't help because claim was against a partnership

bryce3103

hi everybody
I have just got off the phone with the FSCS who for over 6 months have been investigating my claim, I have been told that there is no problem with anything on my side of the claim. However I am the first and only person to make a claim against this firm, they have just told me that they cannot help me as they cannot confirm all three partners are insolvent so they cannot declare the firm as in default. I asked the FSCS what I would need to do now and it seems my only options are to appeal their decision or to take the one partnership who seems to be solvent to a small claims court. Has anybody been through this or has any suggestions as to what I can do next?
thanks in advance for any help

dunstonh

I have been told that there is no problem with anything on my side of the claim.

That is because its unlikely they have even looked at that bit as the first thing they do is found out if the firm is in default.

However I am the first and only person to make a claim against this firm, they have just told me that they cannot help me as they cannot confirm all three partners are insolvent so they cannot declare the firm as in default. I asked the FSCS what I would need to do now and it seems my only options are to appeal their decision or to take the one partnership who seems to be solvent to a small claims court. Has anybody been through this or has any suggestions as to what I can do next?

This would suggest it is a small local firm rather than a national.

It would help us to know the type of PPI it is and what your complaint is. For example, if its against a mortgage broker with monthly premium PPI then you have virtually no chance of success in court. If its against a secured loan broker then you may do if the commission is above 50% (mortgage PPI is typically way below 50%).

bryce3103

it is a claim that was being made for car finance which has taken a very long way round. Originally I made the first stage of the claim against Welcome Finance who were the loan providers, they rejected the claim saying it was the responsibility of the Car Showroom (Stockport Car Supermarket). I then took this to the Ombudsman who confirmed it was Stockport Car Supermarket's responsibility, but because they had ceased trading they couldn't help and I would need to take it to the FSCS. The FSCS has spent the last six months trying to confirm non of the partners of the firm have any cash to pay out on this claim. They have told me today that because they have been unable to confirm all three partners are insolvent they have made a decision on my claim through lack of information. Shouldn't they keep investigating until they get the info they need? Or make a decision to put them into default through lack of info?
thanks

dunstonh

The FSCS has spent the last six months trying to confirm non of the partners of the firm have any cash to pay out on this claim. They have told me today that because they have been unable to confirm all three partners are insolvent they have made a decision on my claim through lack of information. Shouldn't they keep investigating until they get the info they need?

it could be that the directors have not responded or are no longer in the UK and/or cant be traced. The FSCS can only assess a complaint if the firm is verified as insolvent. That is fairlyh easy with limited companies but with the self employed or partnerships, that is difficult to ascertain sometimes.

Shouldn't they keep investigating until they get the info they need?

They may never get the info.

Or make a decision to put them into default through lack of info?

Lack of info does not verify that the partners are insolvent.

You need to decide if it is worth taking the directors to court or not. How much was the PPI premium you paid?

bryce3103

they aren't a limited company unfortunately and the policy without any interest is a little over £2000. Is it unlikely a court would rule in my favour even with all the paperwork from the FSCS & the Ombudsman?

magpiecottage

According to the Financial Services register, Stockport Car Supermarket was registered under FSA registration number 468804

The person responsible for insurance mediation was a Michael Julian Wood, who was also registered under number MJW01481.

The address of the business was 392-398 Buxton Road Stockport Cheshire SK2 7BY.

Telephone 01614873000

If you look here, you will see there is a business with the same name still trading at the same address and with the same telephone number.

One of the partners is listed as a Mike Wood.

I suggest you report this to FOS and ask that your case is reopened.