Which party is responsible for paying out on PPI?

Mrsjd

Hi

I had PPI on a loan back in the early 2000’s - this has been confirmed by the loan company and I have a copy of the loan statements which shows that the loan company took the payments (£3400 in total). The loan company have stated that they are not responsible, because the original loan agreement was brokered by a 3rd party (and the broker company is no longer trading). It seems to me, that even though the loan was brokered, the loan company is responsible since they took payment of the insurance premium. However proving that this was mis sold is going to be tricky, considering that the broker is no longer trading.

I just wondered if anyone had any advice on how I could move forward with this?

-taff

You can't, if the company ceased trading and were not regulated at the time of sale, your complaint is over.
Who sold you the loan?

Nasqueron

Mrsjd wrote: »

Hi

I had PPI on a loan back in the early 2000’s - this has been confirmed by the loan company and I have a copy of the loan statements which shows that the loan company took the payments (£3400 in total). The loan company have stated that they are not responsible, because the original loan agreement was brokered by a 3rd party (and the broker company is no longer trading). It seems to me, that even though the loan was brokered, the loan company is responsible since they took payment of the insurance premium. However proving that this was mis sold is going to be tricky, considering that the broker is no longer trading.

I just wondered if anyone had any advice on how I could move forward with this?

The issue is miss-selling - the loan company did not sell you anything (unless the broker was an employee of theirs) thus they cannot be responsible for miss-selling hence their rejection.

dunstonh

I had PPI on a loan back in the early 2000’s

So, that wording suggests before 14th Jan 2005 (when regulation started)

he loan company have stated that they are not responsible, because the original loan agreement was brokered by a 3rd party (and the broker company is no longer trading).

That is very often the case with loans not arranged by bank staff.

It seems to me, that even though the loan was brokered, the loan company is responsible since they took payment of the insurance premium.

There is nothing wrong with having PPI. So, the lender provided it as they were asked to by the seller. The lender has no liability for the advice given by the seller. The whole PPI issue is about the sales process used by the seller. The lender has nothing to do with that.

However proving that this was mis sold is going to be tricky, considering that the broker is no longer trading.

It isnt going to be tricky. Its impossible. You have no-one to complain to as the seller is not in business.

I just wondered if anyone had any advice on how I could move forward with this?

you can't. Its a pre-regulation sale where the seller was neither regulated at the time (so wouldnt have to consider your complaint if they were still around) but as they no longer exist they cant answer your complaint.