Involuntary Unemployment ????

Bigbob

Hi, I am in the process of trying to reclaim PPI premiums from HSBC, I am self employed, my claim is hinging on the definition of how a self employed person could become involuntarily unemployed without being declared insolvent. The bank has said that they would have paid out if the persons business was not performing sufficiently well to provide business and living expenses, but also that the policy is not designed to provide cover where a business was profitable and providing for their business and living expenses. My problem is that who would decide what level of income would be acceptable for the cessation of business not to have been a matter of choice. My opinion is that if I had ever made a claim the bank would wriggle and wriggle so as not to pay out and insist that I sell the porsche/MONDEO etc and also ask for statements of income/expenditure etc. I reckon any claim would be a virtual non starter. Has anyone else come across this as a self employed person ?? Any imput or comments most appreciated

robertjonesuk

Bigbob wrote: »

Hi, I am in the process of trying to reclaim PPI premiums from HSBC, I am self employed, my claim is hinging on the definition of how a self employed person could become involuntarily unemployed without being declared insolvent. The bank has said that they would have paid out if the persons business was not performing sufficiently well to provide business and living expenses, but also that the policy is not designed to provide cover where a business was profitable and providing for their business and living expenses. My problem is that who would decide what level of income would be acceptable for the cessation of business not to have been a matter of choice. My opinion is that if I had ever made a claim the bank would wriggle and wriggle so as not to pay out and insist that I sell the porsche/MONDEO etc and also ask for statements of income/expenditure etc. I reckon any claim would be a virtual non starter. Has anyone else come across this as a self employed person ?? Any imput or comments most appreciated

some ppi policies payout IU cover to self-employed customers when the business is wound up and when you can provide a letter from your accountant/or solicitor. that's the cse with barclays.

Kavanne

I know Natwest PPI covers you if your company goes into liquidation. Have you tried phoning the HSBC loan sales line and asking about it without giving any account details? Just say you are interested in loan but need to know how PPI covers you in the event you are self employed.

Bigbob

Thanks, I am not really in a business which would be 'wound up' or liquidated, I have no premises or ongoing costs. IMO it would just come down to a matter of how much income would have to reduce to in order to claim.

PasturesNew

I've never bothered with these policies as they always seemed to not work for temping, contracting and self-employment.

iolanthe07

Anecdotal evidence has it that these policies rarely pay out and are not worth bothering with, especially for self employed people. They earn huge commission for the lenders which is why they are pushed so hard.