Can a PPI refund be claimed if a payout has been made on the insurance?

PaulSthse

Hi

My sister used to have a loan with Barclays; when the loan was agreed, she was told that she had to have PPI, which is clearly wrong. However, during the period of the loan, she was made redundant and made a claim against the policy, which duly paid out.

This leads me to two questions:
1) Is she still able to submit a claim, given that it was a condition of the loan?
2) Given the claim, is she able to claim back the commission that was paid to the Bank under the Plevin adjudication?

Many thanks

antrobus

PaulSthse wrote: »

..This leads me to two questions:
1) Is she still able to submit a claim, given that it was a condition of the loan?..

She is free to submit a complaint. Whether there is any point in doing so would depend on, (a) what she paid in PPI and (b) what she received on her claim pay out. If (b) was greater than (a) then the compensation due would be £0.

[Deleted User]

PaulSthse wrote: »

Is she still able to submit a claim, given that it was a condition of the loan?

You need to appreciate the difference between a complaint and a claim. Your sister has already claimed, she is now seeking to complain the insurance was mis-sold.

A regular PPI complaint reason is that the complainant was told the insurance was compulsory when it actually wasn't. While this is a valid complaint, it's not something that anyone can provide compelling evidence of.

Your sister , on the other hand, seems to be accepting that the insurance was indeed compulsory and the fact that the insurance was claimed upon indicates that it was both suitable and she was eligible for it.

So what exactly would be her complaint?

As Antrobus says above, any redress (should it be awarded) would have the amount paid out when she claimed subtracted from it. If she therefore paid in less than she has received already she would receive nothing even if her complaint was successful.

The Plevin Ruling only applies to already rejected complaints and is irrelevant to the current position.