Legal entitlement to PPI refund following divorce.

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Hi, I'm hoping someone may help. My ex husband and I separated 6 years ago and divorced a year and a half ago. It has come to light that my ex husband has reclaimed PPI that had been missold (neither of us knew it existed). It was applied to either our joint bank account or mortgage. I am awaiting confirmation from the bank which it was.

The problem is that he was able to claim the full amount in his sole name and never declared that he had taken steps to reclaim it or the amount he was paid out. When I contacted the bank to ask if there were any policies they were able to tell me that policies on these products were not in my name. They did say that I should right to the bank asking for full disclosure. They said that potentially I should have been entitled to 50% because legally I was 50% responsible for the payments. They couldn't discuss it any further as the PPI was in his name but I should ask my ex husband to consent to me recieving this information. So he clearly denied that he did this and then signed the consent.

At the end of the day I would love to know if I have any legal grounds to take action to recover any amounts that were refunded to him? He seems to think not as our divorce states that we have no further interest in each other's finances. To add insult to injury I still have the joint account but it has been in my sole name for the last 5 years and I still have the mortgage but it has only been transferred into my name in the past 2 years. So I've been paying PPI in his name and he reclaimed it! I'm actually hoping they come back and say it's all one big mistake but I need to know where I stand in the event that it is confirmed.

Many thanks in advance.
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  • [Deleted User]
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    If the PPI policies were solely taken out in his name, I can't see you having any success with a legal challenge..

    Do note that PPI was not simply applied without the knowledge and permission of customers. If neither of you knew you had it, you've either forgotten or simply failed to read what you were signing.
  • Weeme123
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    Hi there. Thank you for taking the time to reply. I take on board your points. It's just a sore one to take. The bank said it would have been in his sole name because he was the only one with an employer (I am self employed). Which ironically is the reason he could complain that it was missold as it would never have been paid out owing to me being jointly responsible for the repayments. ��
  • Nearlyold
    Nearlyold Posts: 2,302 Forumite
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    Weeme123 wrote: »
    Hi there. Thank you for taking the time to reply. I take on board your points. It's just a sore one to take. The bank said it would have been in his sole name because he was the only one with an employer (I am self employed). Which ironically is the reason he could complain that it was missold as it would never have been paid out owing to me being jointly responsible for the repayments. ��

    That may have been the reason your ex used in his complaint but it would not have been the reason the complaint was upheld - the policy would have paid out if your ex was made redundant or off work sick - the fact that you were also party to the mortgage would not affect this.
  • dunstonh
    dunstonh Posts: 116,661 Forumite
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    When I contacted the bank to ask if there were any policies they were able to tell me that policies on these products were not in my name.

    Which is why he got the money. Had they been joint or in your sole name, you would have got half or the full amount respectively.
    They said that potentially I should have been entitled to 50% because legally I was 50% responsible for the payments.

    There is no legal basis that says that. It is the policy that matters. Not the source of payment.
    At the end of the day I would love to know if I have any legal grounds to take action to recover any amounts that were refunded to him?

    As you were not on the policies, the answer would be no.
    He seems to think not as our divorce states that we have no further interest in each other's finances.

    And as the refund is his money and not yours, that would seem to be the case. You can take it up with your solicitor if you wish but you may find yourself paying a lot to get nothing.
    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.
  • Weeme123
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    Thanks everyone. You have pretty much confirmed what I already knew. I just thought I had better check. At the end of the day what's legally correct isn't always what's morally the right thing to do but morally isn't enforceable in law ha ha. Ah well hopefully Karma will kick in and I will win the lottery :)
  • [Deleted User]
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    Weeme123 wrote: »
    what's legally correct isn't always what's morally the right thing to do
    Have you thought about approaching your ex for your share? He is the one who appears to be lacking in morals!
  • Weeme123
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    Hi yes. I actually contacted him before I called the bank to see if he wanted to make a joint claim and he informed that he had already claimed but only for his own policies. I then asked him straight out if he had made a claim on the joint account or mortgage and pointed out that I had been paying that on my own for the past 7 years. His response was that he has no knowledge of what accounts they came from, only that they were in his name. Which is why I followed the banks advice and had him sign a letter giving consent for full disclosure. There is no chance he will hand over anything. So in this instance I have no option but to try and forget about it. I can't let it bring me down though. Onwards and upwards. :)
  • originalkat
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    I'm in a similar situation and I'd love to know how your story ended. .My ex husband put us in huge debt by not paying bills, despite being a high earner, and I found out as he had to tell me we were going to lose our house. We divorced and I bought him out of the house, I worked 100 hours a week for months to be able to do this by remortgaging as I was not a high earner. He also had a lot of personal debt mainly because the lovely new company cars he'd been driving turned out to have been bought by him on credit. I helped him arrange a legal voluntary payment plan for those debts and we've had no contact since. He never paid maintenance for our daughter despite earning three times as much as me and money was always tight for us. I'm reluctant to make a PPI claim that would give him any money, possibly even all of any payment due. I'm hoping he hasn't already claimed. I think the best idea might be to consult a solicitor and ask them the best way forward.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    I'm reluctant to make a PPI claim that would give him any money, possibly even all of any payment due. I'm hoping he hasn't already claimed. I think the best idea might be to consult a solicitor and ask them the best way forward.

    It's very straightforward. If it's a joint policy and you feel make a mis selling complaint, he will received half.

    If it's in a single name, then that person needs to make the complaint and would receive the whole of any redress.

    No need to start paying for legal advice.
  • Tollrd
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    My wife and I divorced some 10 years ago, it was not without problems that ended when she was advised I would get a restraining order against her if she kept harassing me. We had mortgages which had PPI and documentation to support this. The policy’s were only ever in my name as I did not have family money behind me if anything went wrong. I was also the main bread winner. The mortgages were in joint names. I have perused claims, these have been declined by the lenders as needing her signature on the claim form. I then referred them to the ombudsman as I felt that I was not being treated fairly by the lenders, who had all morphed over the years into Lloyds. I explained that due to the harassing issues I was not willing to contact my ex wife and that in all truthfulness I was unaware of her location as the last I heard she was planning to do voluntary work for a religious group abroad. I was willing although reluctant to accept I may only get a 50% payout. The ombudsman has rejected it saying it still needs her signiture. As I paid for the policy which was solely in my name I still feel aggrieved that it has been rejected due to the need for a signiture, or if she is deceased then a copy of her death certificate. Does this sound like I have been dealt with in a fair and correct manner?
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