PPI - broker/seller not in business - who do we claim PPI from?

Yappa150 · 21 August 2019 at 2:54PM

I had accident/sickness/redundancy cover in 1998 plus PHI ( Permanent Health Insurance) & an endowment policy which had premium protection benefit. I am unclear if I am eligible to claim PPI for various reasons:
- Guardian Ins withdrew the Acc/Sickness/red cover product in the early 2000s
- the PHI is still ongoing - my partner has 2 policies
- the endowment was surrendered in Oct 2008 ( we got around £1k compensation via FSCS as it was underperforming). Can we still claim for the extra we paid for the premium protection benefit under the endowment?
The insurance broker who sold the policies went out of business around 8 years ago. They had told us these policies were all essential when we took out our mortgage as well as some PEPS which we surrendered circa 2008.

Who do we contact to claim? What can we claim for, if anything? The Financial ombudsman say we contact FSCS. FSCS say contact the insurance company. I am confused! Can anyone help pls?

SonOf · 21 August 2019 at 3:39PM

I had accident/sickness/redundancy cover in 1998 plus PHI ( Permanent Health Insurance) & an endowment policy which had premium protection benefit. I am unclear if I am eligible to claim PPI for various reasons:

Neither PHI or endowments are PPI.
Only the ASU is PPI.

Can we still claim for the extra we paid for the premium protection benefit under the endowment?

Endowments do not have payment protection on them. The only bolt ons to endowments were waiver of premium and critical illness cover. Neither are PPI.

Who do we contact to claim?

You dont. The ASU sale was 1998. The broker was not reuglated until January 2005. So, even if they existed today, they would reject your complaint as pre-regulation. As they dont exist you have no-one to complain to. The FOS cant accept complaints where the firm no longer exists and the FSCS only consider post regulation sale complaints (the endowment was investment class and that was regulated from 1988. Unlike pure insurance which was 2005).

The Financial ombudsman say we contact FSCS. FSCS say contact the insurance company.

The FOS are right to say it is not them.
The FSCS are right to say its not them.
However, both are wrong in where they told you to go.
The insurer has no liability as they are only responsible for cases their own agents put in place. Not those put in place by brokers or third parties.

Yappa150 · 21 August 2019 at 3:47PM

Thank you for your comprehensive response.

The broker''s stationery says it was regulated under PIA - does that then mean that they sold the ASU (therefore PPI) while not being regulated to do so?

Nearlyold · 21 August 2019 at 4:13PM

Yappa150 wrote: »

Thank you for your comprehensive response.

The broker''s stationery says it was regulated under PIA - does that then mean that they sold the ASU (therefore PPI) while not being regulated to do so?

Yes but only in the sense that General Insurance sales were not regulated anyway, not in the sense that they should have been regulated but weren't.

SonOf · 21 August 2019 at 4:25PM

The PIA was the personal investment authority. It regulated investment class business. Not insurance class. Insurance class was not regulated until January 2005.

Effectively, anyone could sell insurance before then. Indeed, general members of the public would sometimes have insurance agencies and do insurance for their friends.

Yappa150 · 21 August 2019 at 9:51PM

Thank you all very much for your responses - this has been a real eye-opener.

Yappa150 · 27 August 2019 at 7:17PM

Quick update in case anyone else was in same position as me:

Spoke with FSCS recently who confirmed they are the institution of last resort for those whose product sellers are no longer in business - BUT they are only able to go back to 14/01/05. They said PPI was not a regulated product when my products were taken out. They are not able to help any further and this is the end of the line for me, unless I take out a civil suit which may prove tricky as I'd have to track down those who sold the products to me (and also costly, as I would not be able to afford this). So my journey ends here.

[Deleted User] · 27 August 2019 at 7:24PM

Yappa150 wrote: »

Quick update in case anyone else was in same position as me:

In the next two days, of course.

After that there will be no PPI complaints at all...

Bermonia · 27 August 2019 at 7:33PM

Yappa150 wrote: »

Quick update in case anyone else was in same position as me:

Spoke with FSCS recently who confirmed they are the institution of last resort for those whose product sellers are no longer in business - BUT they are only able to go back to 14/01/05. They said PPI was not a regulated product when my products were taken out. They are not able to help any further and this is the end of the line for me, unless I take out a civil suit which may prove tricky as I'd have to track down those who sold the products to me (and also costly, as I would not be able to afford this). So my journey ends here.

Hmmm... so what you were already told on here, good to know:D

SonOf · 27 August 2019 at 8:36PM

unless I take out a civil suit which may prove tricky as I'd have to track down those who sold the products to me (and also costly, as I would not be able to afford this). So my journey ends here.

The seller would be the company, not the individual. So, if the seller was a limited company who ceased to exist then there is no seller to take to court. Plus, do remember that PPI is an FCA issue. Not a legal issue.

PPI - broker/seller not in business - who do we claim PPI from?

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